SunSirs: ECH continued to Rise, with a Short-term Stable to Stronger Operation

Price trend

In December, various favorable factors supported the continued rise of ECH. According to the monitoring system of SunSirs, as of December 20th, the benchmark price of SunSirs's ECH was 9,225.00 RMB/ton, an increase of 2.22% compared to the beginning of this month (9,025.00 RMB/ton).

Price influencing factors:

The prices of liquid chlorine and propylene on the raw material side have fluctuated. As of December 20th, the factory price of mainstream liquid chlorine tank trucks in Shandong Province was 150-200 RMB/ton. The price of raw material glycerol has risen sharply. According to the market analysis system of SunSirs, as of December 20th, the benchmark price of propylene in SunSirs was 6,865.75 RMB/ton, an increase of 0.29% compared to the beginning of this month (6,845.75 RMB/ton).

Supply side: The atmosphere of ECH in the domestic market continued to rise. Affected by factors such as rising raw material prices, the production enthusiasm of ECH enterprises has increased, and the operating rate has risen to 55%. Some leading enterprises were operating at full capacity. As of the 19th, the price of ECH in Shandong region was 9,400-9,600 RMB/ton, with a weekly increase of over 500 RMB/ton.

Downstream demand side: Downstream epoxy resin was affected by raw materials, leading to an increase in market orders and high prices. Manufacturers' stocking expectations have also increased. As of December 20th,, factories were queuing up to pick up goods, and the market was in short supply. The quotation for solid epoxy resin in East China was 13,200-13,400 RMB/ton, with a daily increase of 100 RMB/ton. There is an expected increase in demand for ECH in the short term.

Market outlook

Analysts from SunSirs believe that due to factors such as rising raw material prices, the enthusiasm of ECH production enterprises to start production has increased, and downstream market orders have increased. There is an expectation of an increase in raw material demand, and it is expected that the ECH market may have a slight rise in the short term. More attention still needs to be paid to changes in market prices.

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