This week, the domestic epoxy propane market showed a slight upward trend. According to the Commodity Market Analysis System of Shengyi Society, as of February 20th, the benchmark price of Shengyi Society’s epoxy propane was 8012.5 yuan/ton, an increase of 2.4% compared to the beginning of this week (7825 yuan/ton).
Price influencing factors:
Supply side: The operating rate of the epoxy propane industry this week is around 75.7%. At present, the 300000 tons/year HPPO plant of Lihua Yiwei Yuan is temporarily suspended from sale starting from the 13th due to upstream and downstream impacts; Resulting in a reduction in the supply of epichlorohydrin, low inventory, and a gradual increase in market prices.
Raw material side: The propylene market on the raw material side fluctuates narrowly, with limited cost support. 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).
Downstream demand side: After the price of epoxy propane hit bottom and rebounded this week, the downstream demand atmosphere has slightly improved, and market trading has rebounded. As some factories gradually resume production, it is expected that downstream will provide some support to the market in the near future.
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, the price of epoxy propane in the market may show a slight upward trend under favorable supply and demand conditions, and more attention should be paid to market news guidance.
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