SunSirs: The Epichlorohydrin Market Was Stable with a Weaker Trend

Price trend

Last week, the epichlorohydrin market was running steadily with a slight weakness. Due to high costs and a strong wait-and-see attitude towards downstream epoxy resins, procurement demand had weakened, and the pressure on epichlorohydrin to be released had increased. The market was gradually seeing low-priced sources of goods, and prices had slightly fallen. According to the monitoring and analysis system of SunSirs, as of July 15th, the benchmark price of SunSirs' epichlorohydrin was 10,200 RMB/ton, an increase of 4.08% compared to July 1st.

Price influencing factors:

Raw material side: The market price of raw material propylene declined, while the glycerol market continued to rise due to external market prices and supply constraints. According to the market analysis system of SunSirs, as of July 14th, the benchmark price of propylene in SunSirs was 6,560.75 RMB/ton, a decrease of 2.38% compared to the beginning of this month (6,720.75 RMB/ton).

Supply side: This week, there was an increase in outbound pressure in the epichlorohydrin market, and inventory was slightly loose. It is understood that the Jinze plant in Guangxi had resumed operation; Units such as Wudi Xinyue, Dongying Liancheng, and Jiangsu Haixing had been temporarily shut down due to power supply and other factors; Hebei Jinbang 80,000 tons/year glycerol process plant restarted; The 90,000 tons/year glycerol process plant in Ningbo Huanyang had returned to normal; In addition, some devices were parked for a long time. The overall operating rate of the epichlorohydrin industry was 50-60%.

On the demand side: Due to high costs and a strong wait-and-see attitude towards downstream epoxy resins, procurement demand had weakened, and the pressure of epichlorohydrin outflow had increased, resulting in a slight decline in market prices.

Market outlook

An analyst from SunSirs believes that the epichlorohydrin market was supported by high levels of raw material glycerol, with slightly loose spot supply and gradually emerging low-priced sources. However, cost and supply side support still existed. Downstream, due to high costs, the purchasing atmosphere was not positive and demand was weak. Overall, it is expected that the market price of epichlorohydrin in the short term will be stable with some weakness, and more attention still needs to be paid to changes in raw material prices and market supply and demand.

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