Price trend

This week, the ECH market had maintained its upward momentum. As of November 15th, there was a shortage of spot goods in the market, and supply remained tight. After the price increased, low-priced spot goods were difficult to find, and there had been a decrease in trading orders in the market, with a focus on purchasing small orders for essential needs. According to the monitoring system of SunSirs, as of November 15th, the benchmark price of ECH of SunSirs was 8,875 RMB/ton, an increase of 2.9% compared to the beginning of this month (8,625 RMB/ton).

Analysis review

Price influencing factors: On the raw material side, there has been a significant increase in the market price of raw material propylene recently, and the supply was tight, resulting in an increase in the production cost of ECH. According to the market analysis system of SunSirs, as of November 15th, the benchmark price of propylene in SunSirs was 6,770.75 RMB/ton, a decrease of 0.22% compared to the beginning of this month (6,785.75 RMB/ton).

Equipment situation: In early October, Jiangsu Haixing Chemical, a leading enterprise in ECH production, stopped maintenance of its 130,000 tons/year propylene method ECH unit.

Downstream demand side: The downstream epoxy resin demand was mainly based on small orders, and the raw material side continued to rise. The cost of epoxy resin was supported, and suppliers are cautious in purchasing, resulting in low enthusiasm for inquiries.

Market outlook

An analyst from SunSirs believes that the cost side price has risen, the supply was insufficient, and downstream demand was mainly focused on procurement. There was insufficient follow-up on new orders, and cautious procurement of raw materials was necessary. In addition, leading enterprises stopped for maintenance, and the market supply was tight. It is expected that the ECH market may have a slight increase in the short term, and more attention should still be paid to changes in market prices.

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