SunSirs: The Epichlorohydrin Market Trended Downward This Week

The epichlorohydrin market continued its downward trend this week. According to the monitoring and analysis system of SunSirs, as of June 12, the SunSirs epichlorohydrin benchmark price was 9,300.00 RMB/ton, down -4.12% compared with the beginning of this month (9,700.00 RMB/ton).

Price influencing factors:

Raw material side: The foreign price of raw material glycerin remained high and the domestic demand was weak, resulting in a slight decline in its center of gravity, but the cost of glycerin-based epichlorohydrin was still under pressure. The market price of raw material propylene fell slightly, and the cost side support was still insufficient.

According to the market analysis system of SunSirs, as of June 12, the SunSirs propylene benchmark price was 6,513.25 RMB/ton, down 0.38% compared with the beginning of this month (6,538.25 RMB/ton).

Supply side: The average capacity utilization rate of propylene-based epichlorohydrin is 90% or above, and the current production is relatively active; the capacity utilization rate of the glycerin-based method is only about 40% due to the large loss of enterprises. Overall, the supply of epichlorohydrin is sufficient.

Downstream demand side: The demand for downstream epoxy resin market has weakened, the actual order trading is sluggish, and the capacity utilization rate has reached more than 50%. Overall, the downstream demand is general, and the market is in a wait-and-see mood.

Market forecast: The epichlorohydrin analyst of SunSirs believes that the cost side is insufficiently supported, the downstream demand is weak, the purchasing mentality is not positive, and the actual order trading atmosphere in the market is sluggish.

It is expected that the epichlorohydrin market will maintain a stable but weak trend in the short term, and more attention should still be paid to the price of raw materials and changes in market supply and demand.

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