In March, the market for epichlorohydrin continued to decline due to negative downstream demand. According to the monitoring and analysis system of Shengyi Society, as of March 21st, the benchmark price of Shengyi Society’s epichlorohydrin was 9050 yuan/ton, a decrease of -3.47% compared to the beginning of this month.
Price influencing factors:
Raw material side: In the first half of March, the propylene market showed an upward trend due to changes in supply and demand, and began to fluctuate in the middle of the month. The cost of propylene based epichlorohydrin still has some support. According to the market analysis system of Shengyi Society, as of March 20th, the benchmark price of propylene in Shengyi Society was 6885.75 yuan/ton, an increase of 1.06% compared to the beginning of this month (6813.25 yuan/ton). The glycerol market has experienced a narrow correction in price due to external and domestic demand, with a price drop of 1.94% compared to the end of last month.
Supply side: Overall, the supply of epichlorohydrin in the market will increase.
Downstream demand side: The downstream epoxy resin industry has weak demand, and the overall market is mainly declining. On March 12th, the mainstream negotiation price in the Shandong market was 9200-9300 yuan/ton for acceptance and factory delivery, a decrease of 7.5%. The lack of positive purchasing mentality among traders has created negative constraints on the epoxy chloropropane market.
Market forecast: Analysts from Shengyi Society believe that there is still some support on the raw material side. Although the glycerol market has been narrowly downgraded due to external influences, the expected decline is limited. Part of the production enterprises on the supply side will restart their equipment, and the market for epichlorohydrin will increase. On the downstream side, demand is difficult to increase, and traders have a passive purchasing mentality. Overall, the supply-demand imbalance in the market will continue to affect the weak trend of the epichlorohydrin market, and more attention still needs to be paid to changes in market supply and demand.
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