SunSirs: Epichlorohydrin Market Rose First and Then Fell in September

Price trend

In early September, an unexpected shutdown at a major epichlorohydrin production plant caused a rapid increase in market prices. According to the monitoring and analysis system of SunSirs, as of September 10, the price of epichlorohydrin in Shandong Province soared to 13,000 RMB/ton, a new high for the year. Starting mid-month, the market price of epichlorohydrin began to decline, remaining stable at the end of the month. As of September 30, the benchmark price of epichlorohydrin in Shandong Province was 12,200 RMB/ton, a 5.17% increase from the beginning of the month.

Factors affecting price:

Raw material prices: In the first half of September, glycerin market prices showed a significant upward trend, primarily driven by tight supply, high foreign prices, and recovering downstream demand. Propylene prices, on the other hand, fluctuated. Propylene prices declined slightly in the second half of the month. Overall, raw material prices provided temporary support for epichlorohydrin costs, with prices falling from their highs in the second half of the month. According to the SunSirs market analysis system, as of September 30th, the SunSirs benchmark price for propylene was 6,598.25 RMB/ton, down 0.98% from 6,663.25 RMB/ton at the beginning of the month.

On the supply side: In early September, an unexpected shutdown at a major epichlorohydrin plant led to suppliers actively pushing up prices. Furthermore, Zibo Feiyuan's 100,000 tons/year glycerin process unit was shut down on August 31st, with a restart date to be announced later. Units at Hubei Minteng, Hebei Zhuotai, Zhejiang Zhenyang, and Guangxi Jinze remained shut down. Quzhou Juhua's 100,000 tons/year glycerin process unit was shut down on the morning of September 4th, with a restart date to be announced later. Several other units remained shut down for extended periods. This tight supply squeeze impacted the price of epichlorohydrin. Starting mid-month, profit margins for epichlorohydrin producers using various processes continued to expand, boosting production enthusiasm and leading to a rapid increase in market supply. Prices fell from their highs in the second half of the month.

On the demand side: Following the unexpected shutdown of a major epichlorohydrin plant in September, which caused a price surge, downstream epoxy resin manufacturers showed strong resistance to the high raw material costs, resulting in sluggish shipments. Most companies were cautiously waiting, and trading sentiment was relatively subdued. Epichlorohydrin prices have subsequently fallen sharply. It is expected that epichlorohydrin market prices will remain stable in the coming period.

Market outlook

SunSirs' epichlorohydrin analysts believe that glycerin and propylene prices provided limited support for epichlorohydrin, easing supply tensions somewhat. Downstream demand is limited in the short term due to a buying-high-price-not-selling-low mentality. Epichlorohydrin market prices are expected to remain stable in the future, with further attention focused on 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.