December Epoxy Chloropropane Market First Rises, Then Stabilizes

January 4th, News

After hitting bottom in December, the market shifted to a volatile upward trend. In the mid-to-late part of the month, industry operating rates remained limited, and coupled with relatively high pre-sale orders from several major manufacturers, the pressure on spot supply was not significant. Under the combined influence of cost support and improving supply-demand conditions, the market’s willingness to maintain prices strengthened, and prices stabilized. According to monitoring and analysis systems, as of December 31, the benchmark price for epichlorohydrin stood at 11,600 CNY per ton, up 3.57% compared to the beginning of the month.

Price influencing factors: On the raw material side, declining raw material prices have weakened their support for the market price of epichlorohydrin. According to the market analysis system, as of December 31, the benchmark price of propylene was 5,711.00 CNY/ton, down 7.6% from the beginning of the month (6,180.75 CNY/ton).

Supply side: In early December, some Chinese enterprises conducted plant maintenance, leading to tight inventory and a strained market supply, which caused the price of epichlorohydrin to rise. Starting from late December, the supply gradually became more relaxed, with expectations of new capacity releases and multiple facilities planning to restart, significantly increasing market supply. Sentiment turned bearish, but prices remained firm.

On the demand side: The downstream epoxy resin market is experiencing weak demand, and actual transaction activity remains sluggish. Traders are largely adopting a wait-and-see approach and are being cautious in their procurement, further exacerbating the market’s downturn. Downstream end-use consumption of epichlorohydrin remains subdued, lacking strong support. It is expected that, in the near term, epichlorohydrin market prices will generally remain stable.

Market Forecast: Epoxy Chloropropane analysts believe that cost factors are providing weaker support for epoxy chloropropane prices. Downstream demand remains weak, with buyers primarily making purchases based on immediate needs, resulting in a sluggish trading atmosphere. It is expected that epoxy chloropropane market prices will mainly remain stable in the near term; further attention should be paid to changes in raw material prices and shifts in market supply and demand.