This Week's Epichlorohydrin Market Prices Decline in China (2.2-2.6)

February 9th, News

This week, the price of epichlorohydrin in the Chinese market has decreased. The main reason is the short-term reversal of the supply and demand situation: factory supply has resumed, while pre-holiday stockpiling by downstream customers has ended, leading to weak demand and making it difficult for high prices to be realized in the market. According to the monitoring and analysis system, as of February 6th, the benchmark price of epichlorohydrin was 12,300 CNY per ton, a decrease of -2.38% compared to the beginning of the month.

Price influencing factors:

Raw Materials: The price of glycerol, a key raw material, remains stable at a high level, while the cost of epichlorohydrin provides strong support. The rise in propylene prices also offers some support to epichlorohydrin. According to the market analysis system, as of February 6, the benchmark price of propylene stood at 6,437.67 CNY per ton, up 0.52% from the beginning of this month (6,404.33 CNY per ton).

Supply side: Before the Spring Festival, some factories that had previously halted production for maintenance gradually restarted operations, leading to an increase in market supply. In order to sell their products, factories lowered their quotations.

On the demand side: The downstream epoxy resin market is experiencing weak demand, with a lukewarm trading atmosphere. Purchases are mainly driven by small, immediate needs, and buyers show limited willingness to accept higher prices for epichlorohydrin, resulting in limited transaction volumes in the market.

Market Forecast: Epoxy Chloropropane analysts believe that, supported by high costs at the supply end, weak downstream demand, and a generally subdued trading atmosphere, epoxy chloropropane manufacturers are adopting a bearish stance. Trading activity remains sluggish, with most transactions involving small, immediate-need orders. It is expected that in the near term, epoxy chloropropane prices will likely remain weak and consolidate. Further attention should be paid to changes in raw material prices and shifts in market supply and demand.