Price trend

This week, the focus of the ECH market was relatively weak, and prices had declined. As of December 27th, the benchmark price of ECH in SunSirs was 9,125.00 RMB/ton, a decrease of 1.08% compared to the beginning of this week (9,225.00 RMB/ton).

Analysis review

Price influencing factors:

Raw material side: propylene was mainly sorted in a narrow range, while glycerol market prices were consolidating at a high level. The cost side of ECH was still under pressure. According to the market analysis system of SunSirs, as of December 27th, the benchmark price of propylene in SunSirs was 6,823.25 RMB/ton, a decrease of 0.33% compared to the beginning of this month (6,845.75 RMB/ton).

Supply side: Recently, Shandong Huatai Group Dongying Liancheng Chemical's 100,000 tons/year glycerol (sodium) method ECH plant was successfully started in one go. The increase in new production capacity of ECH eased the previous supply tension. This week, the overall operating rate of the ECH industry reached 50-60%. It is expected that after the restart and load increase of some facilities in Zhejiang, Shandong and other areas next week, the market supply will increase.

Downstream demand side: Downstream mainly consumed inventory and purchases small amounts of replenishment as needed. The trading atmosphere for new orders was cold. Traders should maintained a mentality of buying up and not buying down, and be cautious and wait.

Market outlook

Analysts from SunSirs believe that the cost side prices were under pressure, and downstream inventory consumption was the main factor. Therefore, it is necessary to purchase according to demand and purchase raw materials cautiously. In addition, some enterprises are expected to restart their facilities and increase their loads. It is expected that the supply of ECH will increase next week, and there will be a slight fluctuation and adjustment in market prices. More attention still needs to be paid to changes in market prices.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.