SunSirs: The ECH Market Was Stable with Some Decline and the Atmosphere Was Deadlocked

Price trend

Recently, the market price of ECH has been mainly stable, but the quotations of some enterprises have declined slightly. According to the data from SunSirs’ bulk list, as of April 22, the average price of ECH companies was 16,166.67 RMB/ton, a decrease of 1.82% compared with the price at the beginning of the week, and an increase of 27.63% compared with the price on April 1, and an increase of 34.72% compared with March 22.

Analysis review

Recently, the price of raw material propylene has continued to rise, the price of glycerin has been operating strongly, and the supply side has been tight to support the high operation of the ECH market. However, as the downstream resistance to high-priced raw materials has gradually increased, the enthusiasm for purchasing has weakened, and epoxy resins in some areas have started low, the market’s high-level follow-up is insufficient, and the shipments of holders are under pressure. The focus of market discussions is slightly weaker. As of the 22nd, the mainstream price of ECH market in Shandong was around 16,000-16,300 RMB/ton.

Upstream propylene, as of April 21, the market price of propylene in Shandong still rose slightly. According to the monitoring data of SunSirs, the price of propylene fell sharply in the second half of March and rebounded at the end of the month. At the beginning of April, the market price rose slowly, with an average daily price increase of about 50 RMB/ton. From the 6th, the price sometimes rose and sometimes stabilized. From the 16th, the price rose steadily at the rate of 50 RMB/ton again. As of the 22nd, the market turnover was between 8,550-8,650 RMB/ton, and the mainstream price was about 8,550 RMB/ton. On April 20, the external market of propylene in the United States dropped significantly again, which may have a certain impact on the domestic market. Propylene prices in Asia have been rising slightly in recent days, which has little impact on the propylene market. Propylene market is now no pressure inventory, part of the device is still in repair. The supply of goods in Shandong is a little tight.

On April 22, East China liquid epoxy resin market was consolidating. The mainstream negotiation price reference was around 39,500-40,500 RMB/ton. There was a strong wait-and-see atmosphere in the downstream.

Market outlook

The ECH analyst of SunSirs believes that, on the whole, the current cost and supply side have certain support, but the demand side support is weak, and the market sentiment is deadlocked. It is expected that in the short term, the ECH market may be stable, with narrow fluctuations, and more attention needs to be paid to market news guidance.

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