The market price of epichlorohydrin has continued to rise this week. According to the monitoring and analysis system of Shengyi Society, as of February 20th, the benchmark price of Shengyi Society’s epichlorohydrin was 9325 yuan/ton, an increase of 3.61% compared to the beginning of this month.
Price influencing factors:
On the raw material side, the prices of propylene and glycerol have fluctuated, and the support of high costs is still evident. Among them, the cost of glycerol based epichlorohydrin enterprises has significantly increased, leading to a loss in industry profits. According to the market analysis system of Shengyi Society, as of February 20th, the benchmark price of propylene in Shengyi Society was 6835.75 yuan/ton, an increase of 0.18% compared to the beginning of this month (6823.25 yuan/ton).
Supply side: The supply of epichlorohydrin in the market has decreased. This week, the 30000 ton/year glycerol plant of Dongying Hebang and the 100000 ton/year glycerol plant of Zibo Feiyuan both maintained low load operation; The 80000 ton/year plant in Hebei Jinbang restarted on February 10th, and in addition, some plants are in a long-term shutdown state. In addition, a recent accident occurred at an epichlorohydrin plant in Shandong, and it will take at least a month for the plant to recover. Overall, the operating rate of the epichlorohydrin industry is only about 57.39%.
Downstream demand side: The downstream epoxy resin industry is experiencing slow growth in production. At present, the operating load of the epoxy resin industry is 50.24%, an increase of 11.2% compared to the operating load of 39.04% in the first week after the holiday. Due to the recent increase in raw material prices, the cost side has been under pressure, and some epoxy resin manufacturers have raised prices, which has also brought greater difficulties to manufacturers who urgently need to purchase. It is expected that the prices of epoxy resin manufacturers may rise in the short term, and more attention should be paid to changes in market trends.
Market forecast: Analysts from Shengyi Society believe that high raw material prices will support downstream demand. It is expected that the market price of epichlorohydrin may increase in the near future, and more attention still needs to be paid to changes in market supply and demand.
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