SunSirs: Under demand constraints, the market for ECH was operating weakly

Price trend

Since November, the market for ECH has slightly declined. According to the Commodity Market Analysis System of SunSirs, as of November 10th, the average quoted price of ECH by ECH enterprises was 8,075.00 RMB/ton, a decrease of 0.92% compared to the beginning of the month.

Analysis review

The recent market situation of ECH has been weak. At the beginning of the month, the Shandong ECH market was mainly on the sidelines, with mainstream negotiation prices ranging from 8,200 to 8,300 RMB/ton. On the 10th, the market atmosphere in Shandong was light, with mainstream negotiation prices ranging from 8,050 to 8,200 RMB/ton.

Cost side: According to the commodity market analysis system of SunSirs, the trend of the raw material propylene market was stronger since November, with increased support for the ECH market. The price of raw material glycerol was mainly stable, and the support for the ECH market was still acceptable.

Supply and demand side: Recently, the utilization rate of ECH production capacity had slightly decreased compared to the previous period, and spot supply was tight. Some companies had not shown strong intention to lower their production, but under the influence of the expected release of new production capacity, the supply side had limited support for the market. Insufficient follow-up on the demand side was the main reason for dragging the downward trend of the market, mainly due to the sluggish operation of downstream epoxy resin market, which mainly consumed inventory raw materials. They were cautious in purchasing ECH inquiries based on rigid demand. According to the commodity market analysis system of SunSirs, on November 9th, the reference price of epoxy resin was 13,700.00 RMB/ton, a decrease of 1.67% compared to November 1st (13,933.33 RMB/ton).

Market outlook

Analysts from SunSirs believe that in the short term, poor demand still dominated the market, coupled with expectations of an overall increase in market supply, putting pressure on the mentality of operators. It is expected that the ECH market may be weakly sorted out in the short term, and more attention still needs to be paid to market news guidance.

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