SunSirs: The Market Price of Epichlorohydrin in May Climbed up

The market of epichlorohydrin in May was affected by factors such as the rising price of raw material glycerin, and showed a "climbing" state, and the price continued to rise. According to the monitoring and analysis system of SunSirs, as of May 30, the standard price of epichlorohydrin in SunSirs was 9,700 RMB/ton, up 7.78% from the beginning of May.

At the end of May, approaching the holidays, the downstream market stocking was over, and the epichlorohydrin market showed a steady decline.

Factors affecting prices:

Raw material side: In May, the market price of raw material glycerin rose, the supply of low-priced goods decreased, and the supply was tight, which formed a strong support for glycerin-based epichlorohydrin enterprises, and the price showed an upward trend. As of May 27, the price of 99.5% glycerin in East China was 7,050 RMB/ton, up 11.2% from May 6.

The market price of raw material propylene fluctuated and operated weakly. After mid-May, the price of raw material propylene rose and some devices increased their load, and the market supply was short-term tight. Overall, the cost pressure brought by tight supply and price increases on the raw material side is significant, and the market price of epichlorohydrin continues to rise.

According to the monitoring and analysis system of SunSirs, as of May 30, the benchmark price of propylene in SunSirs was 6538.25 RMB/ton, down -0.49% compared with the beginning of this month (6570.75 RMB/ton).

Supply side: Qingdao Bay glycerin process unit may start up, and some factories plan to restart after maintenance, and the market supply is sufficient. Overall, the operating rate remains at around 50-60%, and the supply is slightly loose.

Downstream demand side: In May, the downstream epoxy resin market demand was weak, mainly for rigid demand purchases, and the market wait-and-see sentiment was strong. In addition, the pre-holiday stocking ended, the overall inquiry decreased, the trading atmosphere was cold, the market showed a downward trend, and the support for epichlorohydrin was limited.

Market Forecast: Analysts of Epichlorohydrin from SunSirs believe that the stocking before the holiday is over, the market demand is insufficient, the price of glycerin on the raw material side is under pressure at a high level, but the demand is not following up well, and the market price may be expected to fall, which will provide limited support for epichlorohydrin. In general, the supply and demand are not favorable enough.

It is expected that the center of gravity of the epichlorohydrin market may decline in June, and more attention should be paid to changes in market supply and demand and the dynamics of the raw material market.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.