Epichlorohydrin rose strongly in September and fell under pressure at the end of the month

Market analysis

According to data from the bulk list, as of September 29, the average price of epichlorohydrin companies was 21,100 CNY/ton, an increase of 45.85% compared with the price at the beginning of the month, and a year-on-year increase of 61.48% in a three-month cycle.

The epichlorohydrin market rose sharply in September, and fell under pressure at the end of the month. At the beginning of the month, the price of raw glycerin was high and the cost support was strong. Some devices were shut down for maintenance. Manufacturers mostly executed orders. The spot supply was tight. The focus of market negotiations was higher and the downstream just needed to follow up. The price of propylene, a raw material, was raised in the mid-term, and the price of glycerin was strong, and the cost was strong. Under the influence of "dual control", some devices were reduced and stopped. The overall operating rate of the market declined. The price of epichlorohydrin skyrocketed in the second half of the year. Starting from the second half of the month, epichlorohydrin has been operating at a high level. As the burden of some downstream epoxy resin factories has dropped, the demand side has shrunk and dragged the market. Near the end of the month, companies are actively shipping mainly, the market atmosphere is weak, and the focus of epichlorohydrin negotiations is moving. 

Upstream propylene, according to data from the business agency's bulk list, as of September 28, the reference price of propylene was 7965.67, which was a 3.6% increase compared with September 1 (7688.55).

Downstream epoxy resin, in the morning of September 28, the liquid epoxy resin market in East China was consolidating, and the negotiated offer was 37,500-38,200 yuan per ton. The offer was unchanged from yesterday, and the offer remained flat. The cost side continues to decline. First, the raw material bisphenol A continues to decline, continuing to drop by 300-400 CNY/ton, and the negotiation is 21700-21800 CNY/ton. Another important raw material epichlorohydrin is consolidating at a high level. Overall, the cost has declined. . Inquiries are just needed downstream, and the actual orders are limited.

Market outlook forecast

On the whole, the current cost side support still exists, but the demand side is not followed up, and the market atmosphere is weak. It is mainly cautious and wait-and-see. Holders are actively shipping. It is expected that the epichlorohydrin market may be weak in the short term Organize mainly.