SunSirs: The Epichlorohydrin Market Firstly Rose Then Stabilized in December

Price trend

After bottoming out in December, the market shifted to a volatile upward trend. In the middle and latter half of the month, limited operating rates in the industry, coupled with a large number of pre-orders from some mainstream manufacturers, resulted in little pressure on spot supply. Driven by both cost support and improved supply and demand, market participants showed a stronger willingness to maintain prices, and the market stabilized. According to the monitoring and analysis system of SunSirs, as of December 31st, the benchmark price of epichlorohydrin was 11,600 RMB/ton, an increase of 3.57% compared to the beginning of the month.

Factors affecting price:

Raw materials: Falling raw material prices weakened support for the price of epichlorohydrin. According to the analysis system of SunSirs, as of December 31st, the benchmark price of propylene was 5,711.00 RMB/ton, a decrease of 7.6% compared to the beginning of the month (6,180.75 RMB/ton).

Supply side: In early December, some companies underwent equipment maintenance, resulting in tight inventory and a strained market supply, which led to an increase in epichlorohydrin prices. From the latter half of the month onwards, supply gradually eased, driven by expectations of new capacity coming online and the planned restart of several production units. This led to a significant increase in market supply, a shift in sentiment towards bearishness, and prices remaining stable.

Demand side: The downstream epoxy resin market was weak, and actual transaction activity was sluggish. Traders were mostly taking a wait-and-see approach and purchasing cautiously, which further exacerbated the market downturn. Downstream end-user consumption of epichlorohydrin was weak, lacking strong support. It is expected that the epichlorohydrin market price will remain stable in the near future.

Market Outlook:

According to analysts at SunSirs, the cost support for epichlorohydrin was weakening. Downstream demand was weak, with purchases limited to essential needs, resulting in a sluggish trading atmosphere. It is expected that the price of epichlorohydrin will remain stable in the near future, but further developments will depend on changes in raw material prices and market supply and demand.

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