As of March 4th, the domestic epoxy chloropropane market has shown a strong upward trend. The mainstream price in Jiangsu has risen to 13000-13100 yuan/ton, an increase of about 100 yuan/ton. The core driving force behind this rise comes from strong support from the cost side and the linkage of downstream resin markets, but high prices have triggered cautious sentiment in downstream markets. According to the monitoring and analysis system of Shengyi Society, as of March 4th, the benchmark price of Shengyi Society’s epichlorohydrin was 13000 yuan/ton, an increase of 4.84% compared to the beginning of this month.
Price influencing factors:
On the raw material side, the main production process of epichlorohydrin (glycerol method) has strong cost support. As of the morning of March 4th, the price of 99.5% glycerol in East China remained at a high level, with delivery prices ranging from 9800-10000 yuan/ton. The high price of glycerol directly drives up the production cost of epichlorohydrin, which is the fundamental reason that forces manufacturers to transfer pressure by raising EPCH prices. The rise in raw material propylene prices has provided strong support for the market price of epichlorohydrin. According to the market analysis system of Shengyi Society, as of March 4th, the benchmark price of propylene in Shengyi Society was 6614.33 yuan/ton, an increase of 3.17% compared to the beginning of this month (6411.00 yuan/ton).
Demand side: Downstream resin prices are rising, driving the demand atmosphere. Recently, influenced by factors such as increased cost support and the escalation of the situation in the Middle East, the epoxy resin market has also continued to follow a broad upward trend. The rise in downstream resin prices has to some extent increased its acceptance and tolerance for upstream raw material price increases, forming a positive feedback transmission from top to bottom in the industrial chain. Despite the positive atmosphere, downstream companies have shown a clear cautious attitude towards the current high price of epichlorohydrin in terms of specific transactions, only maintaining small orders for essential needs and limited actual release of orders.
Market forecast: Analysts from Shengyi Society believe that the high cost side price support of epichlorohydrin is strong, and downstream resin prices are rising. They are cautious about high priced raw materials and mainly engage in small orders for essential needs. It is expected that the market price of epichlorohydrin will remain high in the later period, and more attention should be paid to changes in raw material prices and market supply and demand.
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