SunSirs: The Market Situation of ECH Declined in October

Price trend

According to the Commodity Market Analysis System of SunSirs, as of October 30th, the average price quoted by ECH enterprises was 8,175.00 RMB/ton, a decrease of 2.68% compared to the price on October 1st.

Analysis review

In October, the market price of ECH mainly fell, while the market price rose at the end of the month. After the Double Festival, there is some support for the cost side, with downstream consumption of inventory raw materials as the main source. The enthusiasm for inquiry and procurement is not high, and the shipment pressure on the holder is under pressure. Some enterprises are offering profits to ship, resulting in a downward focus in market negotiations. In the second half of the month, the production capacity utilization rate on the supply side was around 50%, but the demand side performance was still insufficient. The main downstream epoxy resin market was weak, with consumption contracts and inventory being the main factors. Small orders were needed to follow up when buying for bargains. The mentality of the industry was insufficient, with an increase in low-priced supply sources. In the second half of the month, the industry's production capacity utilization rate was low. In addition, some downstream factories entered the market to replenish goods, and the supply side inventory was not pressurised. The downstream mentality was still cautious, with small orders and demand being the main factors.

Upstream propylene, according to the Commodity Market Analysis System of SunSirs, on October 27th, the reference price for propylene was 6,988.25 RMB/ton, a decrease of 3.89% compared to October 1st (7,270.75 RMB/ton).

Downstream epoxy resin, according to the Commodity Market Analysis System of SunSirs, on October 27th, the reference price of epoxy resin was 13,933.33 RMB/ton, a decrease of 8.13% compared to October 1st (15,166.67 RMB/ton).

Market outlook

Analysts from SunSirs believe that as of the 30th, there is some support in the supply side, and downstream mentality is cautious. The market trading atmosphere is average, and it is expected that the ECH market may operate steadily in the short term. More attention should be paid to market news guidance.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.