SunSirs: In December, the Market for ECH Was Stable with Minor Fluctuations

Price trend

According to the Commodity Market Analysis System of SunSirs, as of December 28th, the average price quoted by ECH enterprises was 8,150.00 RMB/ton, an increase of 0.93% compared to the price on December 1st.

Analysis review

The market for ECH remained stable with little movement in December. In early December, the raw material propylene market was operating to be weaker, and glycerol prices were weakly adjusted, cost support was weak. Some factories in Jiangsu, Zhejiang, Shandong, and other regions shut down for maintenance, and the market spot supply was tight. Some enterprises increased their prices. However, the main downstream epoxy resin transactions were limited, and the demand side support was weak. Enterprise shipments were under pressure, and the market atmosphere was stagnant. The cost impact in the mid to late period was limited, with factory delivery contracts and core customers being the main focus. There was no inventory pressure on the supply side, but downstream demand replenishment intentions were not strong, and low follow-up was mainly chosen according to demand, resulting in a light market atmosphere.

Upstream propylene, according to the commodity market analysis system of SunSirs, the reference price of propylene on December 27th was 6,965.75 RMB/ton, a decrease of 1.97% compared to December 1st (7,105.75 RMB/ton), and the impact of cost on the ECH market was limited.

According to the commodity market analysis system of SunSirs, the reference price of epoxy resin on December 27th was 13,300.00 RMB/ton, an increase of 0.25% compared to December 1st (13,266.67 RMB/ton), which lacked support for the ECH market.

Market outlook

According to analysts from SunSirs, there was still support on the supply side, but the demand side was average. Downstream small orders mainly followed up on demand, and the market trading atmosphere was light. It is expected that the ECH market will continue to be weak and stable in the short term, and more attention needs to be paid to market news guidance.

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