This week, the epoxy chloropropane market has been running steadily with a slight weakness. Due to high costs and a strong wait-and-see attitude towards downstream epoxy resins, procurement demand has weakened, and the pressure on epoxy chloropropane to be released has increased. The market is gradually seeing low-priced sources of goods, and prices have slightly fallen. According to the monitoring and analysis system of Shengyi Society, as of July 15th, the benchmark price of Shengyi Society’s epichlorohydrin was 10200 yuan/ton, an increase of 4.08% compared to July 1st.
Price influencing factors:
Raw material side: The market price of raw material propylene has declined, while the glycerol market continues to rise due to external market prices and supply constraints. According to the market analysis system of Shengyi Society, as of July 14th, the benchmark price of propylene in Shengyi Society was 6560.75 yuan/ton, a decrease of 2.38% compared to the beginning of this month (6720.75 yuan/ton).
Supply side: This week, there has been an increase in outbound pressure in the epoxy chloropropane market, and inventory is slightly loose. The overall operating rate of the epichlorohydrin industry is 50-60%.
On the demand side: Due to high costs and a strong wait-and-see attitude towards downstream epoxy resins, procurement demand has weakened, and the pressure of epoxy chloropropane outflow has increased, resulting in a slight decline in market prices.
Market forecast: Business Society’s epoxy chloropropane analyst believes that the epoxy chloropropane market is supported by high levels of raw material glycerol, and spot supply is slightly loose. Low price sources are gradually emerging, but cost and supply side support still exist. Downstream, due to high costs, the purchasing atmosphere is not positive and demand is weak. Overall, it is expected that the market price of epichlorohydrin in the short term will remain stable with some weakness, and more attention still needs to be paid to changes in raw material prices and market supply and demand.