Epichlorohydrin supplies cut sharply and prices rebounded

Domestic epichlorohydrin have low load operation  in September , the enterprise production delivery contract order is given priority to, the spot supply, epoxy chloropropane prices rise, especially the shandong market rally, as of Wednesday, shandong mainstream negotiate prices rose to 16100-16300 CNY/ton d factory, a weekend rose 1200 CNY/ton, up 8%.

The enterprise only supplies the long contract and the order, the market spot can circulate the resource is tight

Since the end of August, Zhejiang Haobang 60,000-ton plant, Hebei Jiaao 60,000-ton plant and Shandong Binhua 75,000-ton plant have been resumed, and market supply has increased. Although epichlorohydrin installations are on, the overall load is not high. The main reason is that the equipment itself and the raw material hydrogen chloride, propylene chloride supply is insufficient.

The output of production enterprises are mainly delivered by contract orders.  The market spot most factory Zibo feiyuan, receive orders sufficient volume, mainly to pre-sale, based on no spot can be sold.  In addition, in the middle of September, Shandong Binhua has about a week of planned maintenance, and a large enterprise in Jiangsu has nearly a month of maintenance plan at the end of September and the beginning of October. Spot supply on the market will be greatly reduced, making the original supply of epichlorohydrin market worse.

Glycerin method cost is rising, the industry push sentiment is obvious

At present epichlorohydrin two routes of the main raw material prices on the high side. Propylene price reference at 7600 CNY/ton, unchanged from last week. The cost of propylene epichlorohydrin is less than ten thousand yuan, and the gross profit is above 6000 CNY/ton.

The cost of glycerin epichlorohydrin unit is rising due to the tight price of glycerin. East China 99.5% glycerol rose to 9200 CNY/ton or above, the cost is 13,000 CNY/ton or above, the gross profit is about 3500 CNY/ton.

Comparatively speaking, propylene method is superior to glycerol method. But with the constant change of market pattern, glycerin epichlorohydrin gradually dominates the market. The market in glycerin method under the support of high cost, leading to the industry's low intention is not strong, push up the mood is obvious.

Major downstream epoxy resin operating rates are stable, and the demand for epichlorohydrin remains stable

In September, epoxy resin stabilized and then fell.  The operating rate of liquid epoxy resin is around 78%, and the average operating rate of solid epoxy resin is around 40%, with little fluctuation.  The downstream end of the high cost of raw material resistance, resulting in the high level of the epoxy resin is difficult to maintain.  Profit plate constantly appear, trading activity significantly reduced

At present, the domestic epichlorohydrin price is still expected to rise with the cost and supply of good driven .  In addition, with the Mid-Autumn Festival and National Day approaching, there is a replenishing demand for epichlorohydrin downstream.  Therefore, it is expected that the epichlohydrin market in the short term will continue high strong trend, but still need to pay attention to the upstream and downstream market dynamics.