Price trend
Last week, the epichlorohydrin market maintained high prices supported by strong cost factors, but weak downstream demand resulted in limited actual transactions, leading to a stalemate where prices were neither rising nor falling. According to the monitoring and analysis system of SunSirs, as of January 16th, the benchmark price of epichlorohydrin was 11,600 RMB/ton, remaining stable compared to the beginning of the month.
Factors affecting price:
Raw Materials: The continued strength in raw material prices was the core factor supporting the high price of epichlorohydrin last week. Recently, domestic glycerin supply was tight, strengthening traders' willingness to maintain high prices; rising international prices had also provided strong cost support for glycerin. The increase in propylene prices also provided some support for epichlorohydrin. According to SunSirs' market analysis system, as of January 16th, the benchmark price of propylene was 6,084.33 RMB/ton, an increase of 6.41% compared to the beginning of the month (5,717.67 RMB/ton).
Demand side: Downstream epoxy resin market demand was weak, and trading activity was sluggish. Purchases were mainly for immediate needs and in small quantities, and there was limited willingness to accept high prices for epichlorohydrin. Market transaction volume was limited.
Market outlook
According to SunSirs' epichlorohydrin analyst, the cost side of epichlorohydrin was strongly supported by high prices, but downstream demand was weak, resulting in a sluggish market trading atmosphere. Epichlorohydrin manufacturers had a bearish sentiment, and trading activity was slow, mainly consisting of small orders for immediate needs. It is expected that the epichlorohydrin market price will mainly consolidate in the future, and further developments will depend on changes in raw material prices and market supply and demand.
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