China February Epichlorohydrin Production and March Forecast

In February 2022, epichlorohydrin production was 84,300 tons, down 0.1,700 tons from January, down 1.98% from The previous month, and up 0.6,700 tons from the same period last year, up 8.63% from the same period last year.

In February, due to the impact of the Winter Olympics, Hebei province was seriously affected. Hebei Zhuotai 35,000 tons/year plant stopped on January 30 and officially produced products on February 19. Although the Jao plant is not shut down, the operating load is maintained at a low level. Jiangsu Haixing, Wudi Xinyue, Ningbo Zhenyang and Shandong Binhua, due to the impact of peripheral, raw materials and upstream devices, negative load reduction or shutdown operation. At present, the supply side of the market is relatively reduced, mainly due to the lack of downstream volume to support, the supply side of the shipment pressure is large, resulting in a decline in starting load. In February 2022, the overall operation level of epichlorohydrin plants in China was about 74%, and the shutdown loss of some plants was about 1720 tons.

In March, domestic epichlorohydrin rose first and then fell the probability is greater. In terms of supply and demand, the market supply is sufficient. The consumption of the main downstream liquid epoxy resin is about about the longest, while the solid and other products are still in need of purchase. As epichlorohydrin prices fell to low in February, glycerin method hovering near the cost line, the price may not continue to fall, and there is also downstream replenishing expectations, will form a certain positive support for the market. Devices, with parking device restart in succession in February, the market supply increases, but still need to focus on glycerine market dynamics, if glycerin maintain cargo price movements of young and epoxy chloropropane prices rebounded under pressure, the individual state of epoxy chloropropane factory will be at a loss, will affect the glycerine method of epoxy chloropropane work enthusiasm, thus improve the overall construction load in March pressure, But do not exclude the existence of special circumstances, but also need specific treatment. Overall, it is estimated that the domestic epichlorohydrin production in March 2022 will increase only slightly compared with that in February, which is estimated to be between 85,000 and 90,000 tons. It is still necessary to pay attention to the operation of epichlorohydrin plants.