September China's Epichlorohydrin Market Fluctuates Upward

September 30 update

In September, the Chinese epoxy propane market fluctuated and rose. According to the monitoring system, as of September 30, the benchmark price of epoxy propane was 7,766.67 CNY/ton, an increase of 4.25% compared to September 1.

Price influencing factors:

The raw material end: In September, the propylene price fluctuated, providing limited cost support for propylene oxide, and did not significantly pressure the cost of propylene oxide. According to the market analysis system, as of September 30, the benchmark price of propylene was 6598.25 CNY/ton, a decrease of 0.98% compared to the beginning of the month (6663.25 CNY/ton).

Supply side: In the early part of the mid-month, the market was boosted by the news of Shandong Qixiang Tengda's plant shutdown, and the trading atmosphere in the market improved; later, with the reduction in load at the first phase of Shandong Binhua's plant and the temporary shutdown of Dongying Huatai's plant, the spot inventory of Chinese epichlorohydrin producers became tight. The supporting role of the supply side on the market strengthened, leading to a continuous rise in the price of epichlorohydrin.

The demand side: In mid-September, downstream sectors concentrated on replenishing their essential inventory, and the volume of new orders for polyether factories significantly increased, leading to a notable rise in the procurement enthusiasm for propylene oxide. It is expected that the price trend of propylene oxide will be relatively strong later on.

Market Forecast:

Epoxy propane analysts believe that the epoxy propane market supply is tight, with limited support from raw material prices, and downstream market demand is acceptable. It is expected that the focus of the epoxy propane market will shift upwards later, and more attention should be paid to changes in raw material prices and downstream supply and demand.