2025 Epichlorohydrin Market Review:

In 2025, the epichlorohydrin market showed an overall volatile upward trend. In the first half of the year, the epichlorohydrin market was driven by rising costs and demand. In the second half of the year, the concentrated release of new production capacity and the restart of previously idled plants shifted the market from a supply shortage to an oversupply, leading to a rapid price decline.

According to data monitored by SunSirs, the price of epichlorohydrin was 9,050 RMB/ton at the beginning of the year and 11,600 RMB/ton at the end of the year, representing a 28.18% increase for the year. The price trend chart showed that the highest price of the year occurred in mid-September, with an average market price of 13,000 RMB/ton, while the lowest price occurred in late March, with an average market price of 8,850 RMB/ton. The maximum price fluctuation for the year was 46.89%.

From the raw material perspective:

Glycerin: In 2025, the glycerin market faced high prices and cost pressures. The price of raw glycerin experienced significant fluctuations throughout the year, divided into four distinct phases. In East China, the price of industrial-grade refined glycerin started at 6,250 RMB/ton at the beginning of the year, and surged to a yearly high of 9,600 RMB/ton in September, driven by the key event of Indonesia imposing export tariffs on crude glycerin. This provided strong support for epichlorohydrin, leading to its price increase. By the end of the year, the price of glycerin fluctuated downwards to around 8,525 RMB/ton, weakening the support for epichlorohydrin.

Propylene: China's Propylene Market Experiences Volatile Downturn in 2025. In 2025, the propylene market saw a significant downward shift in price levels due to the combined pressure of continued capacity expansion and weak demand growth. According to SunSirs' commodity market analysis system, taking the Shandong market at the end of the year as an example, the mainstream transaction price fell to around 6,000 RMB/ton, a significant decrease from the high levels at the beginning of the year. It is expected that propylene prices will maintain a "weak and volatile" trend in 2026. The specific trend will require close monitoring of market dynamics and policy support.

2026 Epichlorohydrin Supply Forecast:

In 2025, the production capacity of epichlorohydrin grew rapidly, reaching approximately 2.385 million tons, with a production volume of about 1.37 million tons. Four new production facilities were added that year, contributing approximately 295,000 tons/year of additional capacity and driving a significant increase in total capacity. Among the newly added capacity, environmentally friendly processes such as the glycerol method have become the main focus. For example, the project planned by Nanshan Aluminum in Indonesia and the newly approved project by Jiao Coal Group both utilize the glycerol method.

According to data from SunSirs, the production capacity of epichlorohydrin continued growing in 2023, 2024, and 2025. New capacity additions were around 140,000 tons in 2024 and around 170,000 tons in 2025. Production in 2025 increased slightly compared to 2024, and the supply of epichlorohydrin is likely to continue increasing in 2026.

Epichlorohydrin demand forecast for 2026:

In 2025, the overall demand for epoxy resins, the largest downstream application of epichlorohydrin,  remained weak. The end-use applications of epoxy resins (such as construction, coatings, and automotive) were not experiencing strong growth, leading to cautious purchasing of epichlorohydrin by downstream users, with a general tendency to "buy when prices rise, but not when they fall." In the second half of the year, with the release of new production capacity, the market supply and demand became more balanced, putting pressure on prices and profits. By the end of the year, during the traditional off-season, demand-side support for prices weakened further. Overall, while there was some increase in demand in 2025, the growth rate was far less than the rate of capacity expansion, resulting in the market remaining under long-term pressure from oversupply. This supply-driven loose market pattern is expected to continue into 2026. Further attention should be paid to the impact of operating rates in the epoxy resin industry on the epichlorohydrin market.

In terms of imports and exports, according to customs data, China's total imports of epichlorohydrin in 2025 amounted to 621.1 tons, a year-on-year decrease of 4.0%. Total exports reached 71,100 tons, a year-on-year decrease of 15.6%. The export data indicates weakening international demand, and the role of exports in absorbing domestic excess capacity hasd declined. The main pressure came from the commissioning of new overseas facilities (such as Arkema in Thailand), which had strengthened regional self-sufficiency and reduced reliance on Chinese supplies. Therefore, it is expected that China's epichlorohydrin exports in 2026 may show a downward trend or remain flat.

Epichlorohydrin Market Forecast for 2026:

In summary, the market in 2026 is likely to experience wide fluctuations, making a sustained upward trend unlikely. Changes in costs, plant operating rates, and downstream inventory replenishment cycles will be key variables influencing short-term volatility, while the long-term outlook remains constrained by the structural contradiction of overcapacity and slowing demand growth.

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