SunSirs: In July, the Market of ECH Fell First and Then Rose (July 1-28)

Price trend

According to the commodity market analysis system of SunSirs, as of July 28, the average price of ECH quoted by ECH enterprises was 7,725.00 RMB/ton, 1.98% higher than that of July 1, and 33.79% lower than that of the same period last year.

Analysis review

In July, the market price of ECH fell first and then rose, with the overall trend rising. At the beginning of the month, there was significant cost pressure, and manufacturers had weak intentions to lower their prices. However, downstream demand follow-up was insufficient, mainly consumed contracts and inventory. Enterprise shipments were under pressure, and high-end negotiation prices declined, and the market declined. In mid July, there was no pressure on manufacturers' production and sales, and there was a strong market supported atmosphere. The main downstream epoxy resin market was stronger, but only small orders were followed up on raw materials, resulting in a stalemate in the market atmosphere. In late July, cost pressure still existed, and the overall utilization rate of industry capacity was low. The market supply was tight, supporting the market's rise, and the enthusiasm for downstream inquiries increased.

In terms of upstream and downstream, the reference price of upstream propylene was 6,595.75 RMB/ton on July 27, up 1.19% from July 1 (6,518.25 RMB/ton). In July, the price of propylene fluctuated slightly, supporting the ECH market. For downstream epoxy resin, on July 27, the reference price of epoxy resin was 13,700.00 RMB/ton, up 9.31% compared with July 1 (12,533.33 RMB/ton). In July, the market of epoxy resin rose, strengthening the support for ECH market.

Market outlook

The ECH analysts of SunSirs believe that as of July 28, the supply side had strong support and the demand side purchased on demand. It is expected that the ECH market will be stronger in the short term. More attention should be paid to the market news guidance.

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