SunSirs: Epichlorohydrin Market Prices Showed a Wide Downward Trend Last Week (September 15-19)

Price trend

Epichlorohydrin market prices showed a broad downward trend last week. According to the SunSirs monitoring and analysis system, as of September 19, the SunSirs benchmark price for epichlorohydrin was 12,200 RMB/ton, a 6.15% decrease from the beginning of the week (September 15).

Factors affecting price:

Raw Materials:

Last week, the market prices of raw materials propylene and glycerin both showed an upward trend. Profit margins for epichlorohydrin produced through various processes continued to expand. The glycerin process had seen a turnaround from losses to profitability, boosting production enthusiasm and gradually increasing market supply. Overall, costs remained supportive for the epichlorohydrin market. According to the SunSirs market analysis system, the SunSirs benchmark price for propylene was 6,730.75 RMB/ton as of September 19th, a 1.01% increase from 6,663.25 RMB/ton at the beginning of the month.

Plant Status:

As epichlorohydrin prices soared to high levels, glycerol-based epichlorohydrin production turned profitable. Several companies, including Shandong Minji, Hubei Minteng, and Zibo Feiyuan, gradually restarted their plants, raising industry capacity utilization to around 50%, easing supply constraints. This increased supply of epichlorohydrin had heightened market competitiveness, leading to a broad decline in epichlorohydrin prices.

Demand side:

Downstream epoxy resin manufacturers had weak demand for purchasing high-priced raw materials, and most of the industry players were cautious and wait-and-see in purchasing. The enthusiasm for inquiries had weakened, causing the epichlorohydrin market to fall from a high level and prices to show a wide downward trend.

Future outlook:

Analysts of epichlorohydrin from SunSirs believe that the high prices of glycerol and propylene on the cost side, coupled with sufficient market supply, had weakened downstream inquiry enthusiasm and were not active in purchasing high-priced raw materials. It is expected that the epichlorohydrin market will mainly move downward in the later period, and more attention still needs to be paid to raw material prices and changes in market supply and demand.

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