July 17th, according to reports
This week, the Chinese epichlorohydrin market showed an upward trend. According to the monitoring and analysis system, as of July 17, the benchmark price of epichlorohydrin was 11,600 CNY per ton, an increase of 7.41% compared to the beginning of the month.
Price Influencing Factors:
On the raw material side: Glycerol is the primary feedstock for the glycerol-based ECH production process, and its continuously rising price has directly driven up the production cost of ECH. The price of 99.5% glycerol in East China has been steadily increasing, reaching 8,800–9,000 CNY per ton delivered to nearby locations as of July 17. In addition, the price of propylene—the feedstock used in the propylene-based ECH production process—has also risen. With both feedstock prices on the rise, the cost support for ECH has become significantly stronger, providing a solid fundamental basis for manufacturers to raise their quoted prices. According to market analysis systems, as of July 17, the benchmark price of propylene stood at 8,944.33 CNY per ton, representing an increase of 20.69% compared to the beginning of this month (7,411.00 CNY per ton).
Supply side: The supply side is showing a contraction. This week, the operating load rate of the ECH industry was 48%, a decrease of 2 percentage points from last week. In terms of facilities, production enterprises in Shandong and Jiangsu provinces are operating relatively steadily, but multiple facilities in Guangxi Jinze, Hebei Jinbang, Hebei Jia'ao, Hebei Zhuotai, and Zhejiang Zhenyang remain shut down. Some facilities are operating at reduced loads, leading to a slight decrease in industry supply. Tight spot supply, low willingness of manufacturers to sell, combined with cost support for raw materials, together form the supply-side logic for price increases.
On the demand side: Demand-side support remains limited. From a consumption structure perspective, epoxy resins—being the core downstream product of ECH—account for as much as 83% of total consumption. This week, the operating rate for liquid epoxy resins rose by 3 percentage points from the previous week to 59%, while that for solid epoxy resins increased by 2 percentage points to 42%. The rise in downstream operating rates has provided some robust, immediate demand pull for ECH. However, downstream users have limited willingness to accept higher raw material prices. As ECH prices have surged to high levels, downstream buyers have become more cautious, new orders are scarce, and market sentiment has turned cold. Overall, the market continues to be dominated by inquiries driven by immediate needs and on-demand procurement, with little appetite for chasing higher prices, thereby somewhat constraining the room for further price increases.
Market Outlook: Epoxy Chloropropane analysts believe that the current ECH market is characterized by “rising costs, tight supply, and cautious demand.” The sustained upward trend in glycerol prices—the primary raw material—is the key driver behind the price rebound. Coupled with supply constraints resulting from the shutdown or reduced capacity of certain production units, these factors are jointly pushing ECH prices higher. Although downstream epoxy resin plants have slightly increased their operating rates, providing some support for steady demand, buyers remain reluctant to chase higher prices, leading to limited trading activity. In the short term, under the backdrop of cost support and tight supply, ECH prices are expected to remain relatively strong. However, downstream acceptance will be the critical factor determining whether price increases can continue. Further attention should be paid to fluctuations in raw material prices and changes in market supply and demand.
