This week, the price of epichlorohydrin hit a new low. With the recovery of enterprise equipment, the operating rate of some enterprises has increased, and the supply has significantly increased. However, due to the impact of low-priced sources, the price center has shifted downwards. As the end of the month approaches, there has been a slight rebound in buying activity, but market prices have not shown significant improvement, and prices have hit a new low at the end of the month. According to the Commodity Market Analysis System of Shengyi Society, as of August 30th, the benchmark price of Shengyi Society’s epoxy propane was 8615.00 yuan/ton, a decrease of -4.01% compared to the beginning of this month (8975.00 yuan/ton).

Price influencing factors:

Raw material side: Recently, the price of propylene in the market has slightly increased, and the price of liquid chlorine has also slightly boosted. The supply volume has increased, but the increase in supply has limited its price rise. According to the market analysis system of Shengyi Society, as of August 30th, the benchmark price of propylene in Shengyi Society was 6968.25 yuan/ton, a decrease of -1.62% compared to the beginning of this month (7083.25 yuan/ton). The fluctuation of raw materials has little impact on the epoxy propane market, and the overall epoxy propane market is still in a downward trend. The main focus should still be on the market supply and demand relationship.

Downstream demand side: Downstream mainly focuses on essential procurement, with a cold trading atmosphere and insufficient order volume. Downstream wait-and-see sentiment is strong, market atmosphere is weak, and the market is declining. More attention should be paid to whether the downstream supporting equipment of Lihua Yiwei Yuan epoxy propane and the capacity expansion of Longhua polyether can be smoothly put into operation in September.

Market forecast:

The epoxy propane analyst from Shengyi Society believes that the current follow-up of new orders for epoxy propane downstream is average, with a focus on essential needs for transactions. Although the supply has increased, the impact of low-priced sources has shifted the price center downward. It is expected that the market price of epichlorohydrin will fluctuate in the short term, and more attention still needs to be paid to market supply and demand as well as changes in raw materials.