Price trend
Last week, the domestic epichlorohydrin market price declined. The main reason was a short-term reversal in supply and demand: factory supply resumed, while downstream demand weakened after pre-holiday stockpiling ended, making it difficult to secure high-priced transactions. According to data from SunSirs monitoring and analysis system, as of February 6th, the benchmark price for epichlorohydrin was 12,300 RMB/ton, a decrease of 2.38% compared to the beginning of the month.
Factors affecting price:
On the raw material side: The price of raw material glycerin remained stable at a high level, providing strong support for the cost of epichlorohydrin. The rise in the price of raw material propylene also provided some support for epichlorohydrin. According to data from SunSirs' market analysis system, as of February 6th, the benchmark price of propylene was 6,437.67 RMB/ton, an increase of 0.52% compared to the beginning of the month (6,404.33 RMB/ton).
On the supply side: Before the Spring Festival, some factories that had previously suspended operations for maintenance gradually restarted production, leading to an increase in market supply. In order to move their stock, factories lowered their prices.
On the demand side: Downstream epoxy resin market demand was weak, trading atmosphere was sluggish, and purchases were mainly small orders for immediate needs. There was limited willingness to accept high-priced epichlorohydrin, resulting in limited market transaction volume.
Market outlook
According to analysts at SunSirs, epichlorohydrin prices were strongly supported by high cost levels, while downstream demand was weak and market trading was sluggish. Epichlorohydrin manufacturers were bearish, and trading was slow, with purchases mainly consisting of small, immediate orders. It is expected that epichlorohydrin prices will likely consolidate weakly in the near future, with more attention needed to be paid to raw material prices and changes in market supply and demand.
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