SunSirs: Epichlorohydrin Market Prices Fluctuated and Rose in July

Price trend

Epichlorohydrin market prices continued to rise in July. According to the SunSirs’ monitoring and analysis system, as of July 31, the SunSirs standard price for epichlorohydrin was 11,400 RMB/ton, a 16.33% increase from the beginning of July.

Factors Influencing Prices:

Raw Materials: Glycerin abroad market price remained high and firm, and market supply was tight. The cost pressure of epichlorohydrin was relatively high, the market was pushing prices up, and the price center of gravity continued to rise. Propylene also saw an upward trend at the end of the month. Overall, high raw material costs put pressure on the cost side, providing strong support for epichlorohydrin, leading to a price increase. According to the SunSirs market analysis system, as of July 31, the SunSirs benchmark price for propylene was 6,433.25 RMB/ton, a 4.28% decrease from 6,720.75 RMB/ton at the beginning of the month.

On the supply side: Epichlorohydrin spot supply was slightly tight this month, leading to a slight price increase. Zibo Feiyuan's 100,000 ton/year glycerin process plant increased capacity; Fujian Haobang's 55,000 ton/year glycerin process plant restarted on July 20; and Shandong Sanyue's 80,000 ton/year propylene process plant temporarily shut down on July 23. Several other plants were temporarily experiencing long-term shutdowns. The overall epichlorohydrin industry operating rate was 50-60%.

On the demand side: In July, the downstream epoxy resin market saw strong end-user demand, driven by increased costs. Liquid resin manufacturers in Shandong Province enjoyed ample orders, leading to continued price increases. Some manufacturers in East China also faced tight supply, leading to price increases. Overall, rising downstream epoxy resin prices provided increased support for the raw material epichlorohydrin. With positive demand news supporting this, epichlorohydrin market prices are expected to remain stronger.

Future outlook:

SunSirs’ epichlorohydrin analysts believe that glycerin and propylene prices remained high, spot supply was slightly tight, and downstream demand had strengthened, creating a favorable trading atmosphere. With favorable supply and demand conditions, the epichlorohydrin market is expected to continue to be stable and stronger, and further attention needs to be paid to raw material prices and market supply and demand changes.

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