SunSirs: Supply Increased, ECH Market Continued to Decline

Price trend

The market price of ECH has fallen this week. As of December 31st, the benchmark price of ECH in SunSirs was 9,050.00 RMB/ton, which was the same as at the beginning of this month (9,050.00 RMB/ton).

Analysis review

Price influencing factors:

On the raw material side, narrow range sorting of propylene was the main focus, while the market price of glycerol has risen. The cost side of ECH was still under pressure. According to the market analysis system of SunSirs, as of December 31st, the benchmark price of propylene in SunSirs was 6,840.75 RMB/ton, a decrease of 0.07% compared to the beginning of this month (6,845.75 RMB/ton).

Supply side: Equipment situation: Last week, Zhejiang Haobang's 120,000 tons/year equipment was operated with reduced load; The 100,000 ton/year plant of Fujian Kelin will be shut down at the beginning of this week, and the restart time will be notified separately; The Ningbo Huanyang 90,000 ton/year plant was scheduled to restart by the end of December; Wudi Xinyue and Shandong Sanyue plant PO conversion to ECH; In addition, there were still some devices that have been parked for a long time. The overall operating rate of the ECH industry was 50-60%. The market supply had increased.

Downstream demand side: Downstream mainly consumed inventory and purchased 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

An analyst from SunSirs believes 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 have restarted their facilities and increased their load. It is expected that there will be a slight fluctuation adjustment in the market price of ECH in the short term, and more attention still needs to be paid to market price changes.

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