The epoxy propane market showed a “V” trend in February, with prices gradually stabilizing after bottoming out and rebounding. According to the Commodity Market Analysis System of Shengyi Society, as of February 27th, the benchmark price of Shengyi Society’s epoxy propane was 8037.5 yuan/ton, a decrease of -0.77% compared to the beginning of this month (8100 yuan/ton).
Price influencing factors:
Supply side: The operating rate of the epoxy propane industry is around 75.7%. In early February, after the end of the Spring Festival holiday, epoxy propane manufacturers resumed production, resulting in an increase in supply and pressure on inventory accumulation. The market’s willingness to raise prices was insufficient, and the price trend declined; Due to the impact of equipment shutdown and other factors in the later stage, the supply has been reduced, inventory is low, and market prices are gradually rising. At present, both Lihua Yiweiyuan and Xinyue Group’s epoxy propane units are in a shutdown state.
Raw material side: Acrylic on the raw material side is affected by changes in supply and demand, mainly consuming inventory, resulting in a weak market price trend. According to the market analysis system of Shengyi Society, as of February 27th, the benchmark price of propylene in Shengyi Society was 6813.25 yuan/ton, a decrease of -0.15% compared to the beginning of this month (6823.25 yuan/ton).
Downstream demand side: In early February, some terminals had not yet resumed production, the downstream demand atmosphere was cold, the purchasing mentality was not positive, and the transmission of epoxy propane was not smooth. In a state of strong supply and weak demand, the price of epoxy propane showed a downward trend. The terminal gradually resumed production in the later stage, and the purchasing mentality was positive. In addition, the news of the shutdown of large factories on the supply side brought positive support, and downstream purchasing followed suit, resulting in a rebound in trading atmosphere.
Market forecast:
Business Society’s epoxy propane analyst believes that while the supply of epoxy propane in the market is reduced, downstream demand has increased. In addition, due to the temporary suspension of sales by large enterprises, it is predicted that the epoxy propane market price may show a volatile trend in the later stage, and more attention should be paid to market news guidance.
| http://www.thiourea.net |