July epoxy chloropropane market prices fluctuated with a strong trend in China

August 1st, according to the news

In July, the market price of epichlorohydrin continued to rise. According to the monitoring and analysis system, as of July 31, the benchmark price of epichlorohydrin was 11,400 CNY per ton, an increase of 16.33% from early July.

Price influencing factors:

Raw material side: The external price of glycerol, the raw material, remains firm at a high level, and market supply is tight. Epoxy chloropropane faces significant cost pressure, leading to strong upward momentum in the market and sustained price increases. Propylene, another raw material, also showed an upward trend at the end of the month. Overall, due to high costs on the raw material side, epoxy chloropropane prices have been supported by strong cost pressures and have risen accordingly. According to the market analysis system, as of July 31, the benchmark price of propylene was 6433.25 CNY/ton, down 4.28% compared to the beginning of this month (6720.75 CNY/ton).

Supply side: This month, the spot supply of epichlorohydrin in the Chinese market is slightly tight, with market prices showing a slight increase. Zibo Feiyuan's 100,000 tons/year glycerol method plant has increased its load; Fujian Haobang's 55,000 tons/year glycerol method plant restarted on July 20th; Shandong Sanyue's 80,000 tons/year propylene method plant briefly shut down on July 23rd. In addition, some plants are still long-term shut down. The overall operating rate of the epichlorohydrin industry in China is 50-60%.

Demand side: In July, the downstream epoxy resins market experienced strong terminal demand due to rising costs. Manufacturers in Shandong region reported abundant orders for liquid resins, leading to continuous price increases. Supply was also relatively tight in some areas of East China, prompting price adjustments upward as well. Overall, the rise in downstream epoxy resin prices has strengthened support for the raw material epichlorohydrin. It is expected that with positive demand-side news supporting it, the market price of epichlorohydrin will continue to trend strongly upward.

Market Forecast: Epoxy chloropropane analysts believe that with the high and firm prices of glycerin and propylene on the cost side, and a slightly tight supply of spot goods, downstream demand has strengthened, and the trading atmosphere is decent. Under the favorable supply and demand conditions, it is expected that the epoxy chloropropane market in China will continue to operate steadily with a stronger bias. More attention should still be paid to the changes in raw material prices and market supply and demand.