SunSir: The Market for ECH Fluctuated and Rose in August (August 1-29)

Price trend

According to the Commodity Market Analysis System of SunSirs, as of August 29th, the average price quoted by ECH enterprises was 8,175.00 RMB/ton, an increase of 4.47% compared to August 1st and a decrease of 30.52% compared to the same period last year.

Analysis review

The market price of ECH fluctuated and increased in August. At the beginning of the month, cost pressure still existed, and the production capacity utilization rate of ECH and major downstream epoxy resin industries had slightly improved. Enterprises mainly delivered contracts and early orders, and the market's spot supply was tight, supporting the rise of ECH prices. As prices rose, downstream inquiries into the market were cautious, and new orders were limited. Manufacturers were under pressure and prices were falling. In middle August, cost support had been strengthened, and the capacity utilization rate of the supply side industry was below 50%. The overall market supply was relatively low, supporting the rise of enterprise quotations. Downstream inquiries and procurement were mainly small orders and followed up just in needed. In late August, cost support was weak, downstream demand was weak, and mainly consumed inventory raw materials. Holders were under pressure to ship, and enterprise quotations were lowered. As the end of the month, some factories in Jiangsu and Zhejiang provinces were shut down, and the operators were in a high price mentality.

Upstream propylene: on August 29th, the reference price for propylene was 6,888.25 RMB/ton, an increase of 2.61% compared to August 1st (6,713.25 RMB/ton).

Downstream epoxy resin, on August 29th, the reference price for epoxy resin was 14,466.67 RMB/ton, an increase of 1.88% compared to August 1st (14,200.00 RMB/ton).

Market outlook

ECH Analysts from SunSirs believe that as of August 29, there was some support on the cost side, and manufacturers' inventory was not under pressure. The market had a high price mentality, but downstream follow-up was average. It is expected that the ECH market may wait and see and consolidate in a narrow range in the short term, and more attention needs to be paid to market news guidance.

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