In February, the market price of epichlorohydrin increased significantly, with some areas exceeding 10000 yuan. According to the monitoring and analysis system of Shengyi Society, as of February 24th, the benchmark price of Shengyi Society’s epichlorohydrin was 9375 yuan/ton, an increase of 4.17% compared to the beginning of this month.

Price influencing factors:

Raw material side: The propylene market is affected by changes in supply and demand, mainly consuming inventory, and the market price is temporarily stable. The increase in propylene based epichlorohydrin is limited; Due to tight supply and high production costs in the glycerol market, prices have increased. Supported by favorable cost factors, the price of glycerol based epichlorohydrin has been positively pushed up. According to the market analysis system of Shengyi Society, as of February 24th, the benchmark price of propylene in Shengyi Society was 6858.25 yuan/ton, an increase of 0.51% compared to the beginning of this month (6823.25 yuan/ton).

Supply side: The supply of epichlorohydrin in the market has decreased. Dongying Liancheng’s 100000 tons/year glycerol process unit is currently shut down, and the restart time will be notified separately. Hengyang Jiantao’s 50000 tons/year propylene process unit will shut down on February 17th, and the restart time will be notified separately. In addition, some devices are in a long-term parking state. Overall, the operating rate of the epichlorohydrin industry is about 50-60%.

Downstream demand side: The downstream epoxy resin industry is experiencing slow growth in production. At present, the overall operating rate of liquid resin is 70-80%, and the overall operating rate of solid resin is 50-60%. The market price of liquid epoxy resin has increased, with positive inquiries and a good trading atmosphere. The demand for solid epoxy resin is generally average, and market purchases are replenished as needed, with small order transactions being the main focus. Overall, downstream demand is showing a stable to strong trend.

Market forecast: Analysts from Shengyi Society believe that with the rise in glycerol prices and high cost support, coupled with the shutdown of some epoxy chloropropane production enterprises, the supply of epoxy chloropropane will be reduced. The attitude of holders of goods is positive, and the atmosphere of price increase is strong. At the same time, the overall downstream demand atmosphere has also improved. Supported by favorable supply and demand, it is expected that the market price of epichlorohydrin will maintain a strong trend in the near future, and more attention still needs to be paid to changes in market supply and demand.