Price trend

The market price of ECH has continued to rise this week. According to the monitoring and analysis system of SunSirs, as of February 20th, the benchmark price of SunSirs' ECH is 9,325 RMB/ton, an increase of 3.61% compared to the beginning of this month.

Analysis review

Price influencing factors:

On the raw material side, the prices of propylene and glycerol have fluctuated, and the support of high costs is still evident. Among them, the cost of glycerol based ECH enterprises has significantly increased, leading to a loss in industry profits. According to the market analysis system of SunSirs, as of February 20th, the benchmark price of propylene in SunSirs is 6,835.75 RMB/ton, an increase of 0.18% compared to the beginning of this month (6,823.25 RMB/ton).

Supply side: The supply of ECH in the market has decreased. This week, the 30,000 ton/year glycerol plant of Dongying Hebang and the 100,000 ton/year glycerol plant of Zibo Feiyuan both maintained low load operation; The 80,000 ton/year plant in Hebei Jinbang restarted on February 10th, and in addition, some plants are in a long-term shutdown state. In addition, a recent accident occurred at an ECH plant in Shandong, and it will take at least a month for the plant to recover. Overall, the operating rate of the ECH industry is only about 57.39%.

Downstream demand side: The downstream epoxy resin industry is experiencing slow growth in production. At present, the operating load of the epoxy resin industry is 50.24%, an increase of 11.2% compared to the operating load of 39.04% in the first week after the holiday. Due to the recent increase in raw material prices, the cost side has been under pressure, and some epoxy resin manufacturers have raised prices, which has also brought greater difficulties to manufacturers who urgently need to purchase. It is expected that the prices of epoxy resin manufacturers may rise in the short term, and more attention should be paid to changes in market trends.

Market outlook

Analysts from SunSirs believe that the high prices of raw materials support downstream demand. It is expected that the market price of ECH may increase in the near future, and more attention still needs to be paid to changes in market supply and demand.

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