Price trend

The epichlorohydrin market exhibited a V-shaped trend in August, with the overall center shifting upward compared to July. According to the monitoring and analysis system of SunSirs, as of August 29, the benchmark price of epichlorohydrin was 11,600 RMB/ton, up 1.75% from the beginning of the month.

Factors Influencing Prices:

Raw Materials: In the first half of the month, raw material glycerin prices remained high and firm, while propylene prices showed slight fluctuations. This provided some support to epichlorohydrin costs, but the strength of this support was limited, leading to a downward trend in epichlorohydrin prices. In the second half of the month, glycerin and propylene market prices remained high, placing significant pressure on companies to meet production costs. Most companies raised prices in line with rising costs. According to the SunSirs market analysis system, as of August 28, the SunSirs benchmark price for propylene was 6,633.25 RMB/ton, a 3.11% increase from the price of 6,433.25 RMB/ton at the beginning of the month.

On the supply side: In early August, the release of new production capacity in Shandong and the completion of some plant maintenance led to an expected increase in market supply, resulting in a slack supply situation. This lack of support for epichlorohydrin supply contributed to a downward shift in prices. In late August, maintenance of some plants in Zhejiang and other regions tightened spot supply. Despite the release of new capacity in Shandong and the increase in some spot exports, the overall supply shortage had not been fully alleviated, and epichlorohydrin market prices had bottomed out and rebounded.

On the demand side: In August, the downstream epoxy resin industry's capacity utilization rate was approximately 50%. Downstream companies primarily focused on just-in-time purchases, resulting in a generally subdued trading atmosphere and few actual orders. In late August, as epichlorohydrin prices hit rock bottom, some companies placed small, just-in-time orders to fulfill previous contracts. However, as epichlorohydrin prices rose to high levels, downstream companies were reluctant to accept the higher prices, resulting in sluggish shipments. As of August 29, transactions were sluggish at high levels, and the trading atmosphere was relatively subdued. It is expected that epichlorohydrin market prices will remain stable in the coming period.

Market outlook

SunSirs' epichlorohydrin analysts believe that glycerin and propylene prices remained high, and supply constraints had yet to fully ease. Overall, the raw material and supply sides provided some support for the epichlorohydrin market. However, weak downstream demand and a sluggish trading atmosphere may limit continued price increases. Epichlorohydrin market prices are expected to remain stable in the future, with more attention still needed on raw material prices and market supply and demand changes.

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