Market Overview

The market for ECH remained stable this week. As of August 22nd, the benchmark price of ECH in SunSirs was 7,987.50 RMB/ton, an increase of 0.16% compared to the beginning of this month (7,975.00 RMB/ton).

Analysis review

Price influencing factors:

Raw material side: Recently, the price of propylene in the market has risen, and the price of liquid chlorine has been running weakly and steadily. In addition, some liquid chlorine enterprises have undergone equipment maintenance due to malfunctions, resulting in a decrease in liquid chlorine exports, which suppressed the cost of propylene oxide, and mostly maintained firm quotations. Raw material glycerol was steadily rising, but overall there was still cost pressure. According to the market analysis system of SunSirs, as of August 22, the benchmark price of propylene in SunSirs is 6,890.75 RMB/ton, a decrease of 2.72% compared to the beginning of this month (7,083.25 RMB/ton).

Equipment situation: The 35,000 ton/year propylene process unit of Dongying Liancheng was scheduled to shut down on the evening of August 8th and was expected to last for 3-4 days. On August 2nd, the 75,000 ton glycerol process unit of Binhua Group had restarted and increased its load, with a daily output of 200 tons; Additionally, some were in long-term parking. The operating rate of the ECH industry within the week was 50-60%.

Downstream demand side: The downstream epoxy resin market was mainly consolidating, with a production capacity utilization rate of over 50%. There was sufficient inventory, and some factories were temporarily shutting down to adjust the load of their equipment under inventory pressure. Downstream terminal inquiries were not active, was cautious in procurement of raw materials, follow-up on new orders was insufficient, and signing volume was weaker.

Market outlook

Analysts from SunSirs believe that the cost pressure still existed, and downstream new orders were insufficient to follow up, they were cautious in procurement of raw materials, and transactions were mainly driven by essential needs. It is expected that in the short term, the ECH market will mainly operate weakly and steadily, and more attention should still be paid to changes in raw material prices.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.