In September, the Epichlorohydrin Market First Rises Then Falls

September 30 update

In early September, the market price of epichlorohydrin was rapidly pushed up due to an unexpected shutdown at a major factory. According to the monitoring and analysis system, by September 10, the price of epichlorohydrin in Shandong had soared to 13,000 CNY/ton, setting a new high for the year. Starting from mid-September, the market price of epichlorohydrin entered a downward channel from its peak, with prices stabilizing by the end of the month. As of September 30, the benchmark price of epichlorohydrin in Shandong was 12,200 CNY/ton, representing a 5.17% increase from the beginning of the month.

Price influencing factors:

On the raw materials front, during the first half of September, glycerol prices showed a significant upward trend, primarily driven by tight supply, strong international market conditions, and recovering downstream demand. Meanwhile, propylene experienced volatile trading, with its price trajectory weakening somewhat in the second half of the month. Overall, raw material prices provided temporary support to the cost of epichlorohydrin, though prices for epichlorohydrin eventually eased from their earlier highs in the latter half of September. According to market analysis systems, as of September 30, the benchmark price for propylene stood at 6,598.25 CNY per ton—down 0.98% compared to the beginning of the month (6,663.25 CNY per ton).

Supply side: In early September, due to an unexpected shutdown at a major factory, this sudden event led to a more active push for price increases by suppliers. Additionally, Zibo Feiyuan's 100,000 tons/year glycerol process unit was shut down on August 31, with the restart time to be announced later; units from Hubei Minteng, Hebei Zhuotai, Zhejiang Zhenyang, and Guangxi Jinze are still in a shutdown state; Quzhou Juhua's 100,000 tons/year glycerol process unit was also shut down in the morning of September 4, with the restart time to be announced; furthermore, some units have been in long-term shutdowns. The tight supply situation has influenced the rise in epichlorohydrin prices. Starting from mid-September, as the profit margins for epichlorohydrin producers using different processes continuously expanded, production enthusiasm increased, leading to a rapid growth in market supply. In the second half of the month, the price of epichlorohydrin began to decline from its peak.

On the demand side, following an unexpected shutdown at a major epoxy chloropropane producer in September—which triggered a sharp price surge—downstream epoxy resin manufacturers have grown increasingly resistant to the higher raw material costs. This has resulted in sluggish shipments from businesses, with most companies adopting a cautious wait-and-see approach. As a result, trading activity remains relatively subdued compared to typical market conditions. Meanwhile, epoxy chloropropane prices have begun to decline rapidly. Going forward, market analysts expect epoxy chloropropane prices to stabilize and remain largely steady.

Market Forecast: Epoxy Chloropropane analysts believe that the limited support for epoxy chloropropane comes from the relatively stable prices of glycerol and propylene at the cost end. Meanwhile, the tight supply situation has eased somewhat. Additionally, downstream demand remains constrained as buyers are more inclined to wait for price increases rather than purchasing during dips. As a result, epoxy chloropropane market prices are expected to remain largely steady in the near term, though ongoing monitoring of raw material costs and shifts in market supply and demand will be crucial.