Price trend

The ECH market first rose and then stabilized in August. In early August, multiple production enterprises underwent equipment maintenance, resulting in tight market supply. Xinyue, Binhua and other facilities operated with reduced load. The decrease in supply had caused traders to push up market prices. In mid August, market trading volume weakened, and some companies offered discounts for sales. The market atmosphere gradually cooled down, and prices fell and stabilized. According to the market analysis system of SunSirs, as of August 30th, the benchmark price of SunSirs' ECH 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 had slightly increased, and the price of liquid chlorine had also slightly boosted. The supply volume increased, but the increase in supply had limited its price rise. The price of raw material glycerol remained stable, and overall cost pressure still existed. The quotation for ECH was firm. According to the market analysis system of SunSirs, as of August 30th, the benchmark price of propylene in SunSirs was 6,968.25 RMB/ton, a decrease of 1.62% compared to the beginning of this month (7,083.25 RMB/ton).

Downstream demand side: The consolidation and operation of the downstream epoxy resin market was the main focus, 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, cautious procurement of raw materials, insufficient follow-up on new orders, and weak signing volume.

Market outlook

An analyst from SunSirs believes that there was still cost pressure on ECH, and there was insufficient follow-up on downstream new orders. Therefore, caution should be exercised in purchasing raw materials, with a focus on meeting the urgent needs of transactions. 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.

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