The market price of epichlorohydrin first decreased and then increased in January. According to the monitoring and analysis system of Shengyi Society, as of January 20th, the benchmark price of Shengyi Society’s epichlorohydrin was 9025.00 yuan/ton, a decrease of -0.28% compared to the beginning of this month.

Price influencing factors:

On the raw material side, prices of propylene and liquid chlorine have fluctuated, supported by high prices of glycerol. Overall, there is still pressure on the cost side. According to the market analysis system of Shengyi Society, as of January 20th, the benchmark price of propylene in Shengyi Society was 7008.25 yuan/ton, an increase of 2.52% compared to the beginning of this month (6835.75 yuan/ton).

Supply side: At the beginning of this month, the equipment was restarted one after another, and with the release of some new production capacity in Shandong, the market supply increased significantly. The market price competition was fierce, and some factories mainly focused on shipping, resulting in a decline in prices; In the middle of the month, some areas experienced equipment load operation and shutdown, with an overall operating rate of about 50%, resulting in a tight supply of goods. In addition, downstream suppliers actively stocked up before the holiday, and demand improved, leading to a gradual increase in prices.

Downstream demand side: As the Spring Festival approaches, the downstream epoxy resin market is in a low season of demand. In addition, some units are shut down for maintenance, resulting in a decline in overall production capacity and output, which makes it difficult to form favorable support for epichlorohydrin. Market demand is weak, trading atmosphere is cold, prices remain relatively stable, and the main focus is on stocking up for essential needs.

Market forecast: Analysts from Shengyi Society believe that as the Spring Festival approaches, downstream demand will decrease, but cost support still exists. In addition, some supply side enterprises have a low operating rate of about 50% overall, and low-priced goods in the market are gradually decreasing. Traders’ quotes are firm, and it is expected that the market price of epichlorohydrin will remain stable in the near future. More attention still needs to be paid to changes in market supply and demand.