SunSirs: The Market for ECH Slightly Increased in April

Price trend                                                     

The market situation of ECH slightly increased in April. According to the Commodity Market Analysis System of SunSirs, as of April 28th, the average price quoted by ECH enterprises was 8,200.00 RMB/ton, an increase of 1.55% compared to the reference price of 8,075.00 RMB/ton on April 1st.

Analysis review

At the beginning of the month, some devices were shut down or reduced in demand, resulting in an overall shortage of spot supply in the market. As the price of raw material propylene stopped falling and rose, the price of liquid chlorine increased, and cost pressure increased. Downstream customers watched for phased replenishment, and the enthusiasm for inquiries was still good. The focus of negotiations on ECH increased. After the rise, market transactions slowed down, with downstream consumption of inventory materials as the main source, and the market stabilized.

Entering the second half of the month, the cost pressure of the propylene method was still significant, and the industry's capacity utilization rate was below 50%. However, the demand side dominated the market, and downstream buying intentions were not high. Inquiries were on the low side, putting pressure on the mentality of the industry. The focus of negotiations in the ECH market was deadlocked and weak. Approaching the end of the month, the market's stocking performance was average, with a strong wait-and-see atmosphere.

Main downstream epoxy resins: On April 26th, the reference price for epoxy resins was 12,800.00 RMB/ton, an increase of 1.05% compared to April 1st (12,666.67 RMB/ton). There was a phased replenishment of ECH in April, with limited overall support.

Market outlook

Analysts from SunSirs believe that short-term cost support may continue, but downstream demand follow-up is limited and market transactions are average. It is expected that in the short term, the ECH market may remain stable and operate on a wait-and-see basis, and more attention should be paid to market news guidance.

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