SunSirs: The Market Price of ECH Increased Significantly in February, with Some Areas Exceeding 10,000 RMB/ton

Price trend

In February, the market price of ECH increased significantly, with some areas exceeding 10,000 RMB/ton. According to the monitoring and analysis system of SunSirs, as of February 24th, the benchmark price of SunSirs' ECH was 9,375 RMB/ton, an increase of 4.17% compared to the beginning of this month.

Analysis review

Price influencing factors:

Raw material side: The propylene market was affected by changes in supply and demand, mainly consuming inventory, and the market price was temporarily stable. The increase in propylene based ECH was limited; Due to tight supply and high production costs in the glycerol market, prices have increased. Supported by favorable cost factors, the price of glycerol based ECH has been positively pushed up. According to the market analysis system of SunSirs, as of February 24th, the benchmark price of propylene in SunSirs was 6,858.25 RMB/ton, an increase of 0.51% compared to the beginning of this month (6,823.25 RMB/ton).

Supply side: The supply of ECH in the market has decreased. The 60,000 ton/year propylene process unit in Wudi Xinyue suddenly shut down on the evening of February 18th, and the restart time will be notified separately. Dongying Liancheng's 100,000 tons/year glycerol process unit was currently shut down, and the restart time will be notified separately. Hengyang Jiantao's 50,000 tons/year propylene process unit was shut down on February 17th, and the restart time will be notified separately. In addition, some devices are in a long-term parking state. Overall, the operating rate of the ECH industry was about 50-60%.

Downstream demand side: The downstream epoxy resin industry was experiencing slow growth in production. As of February 24th, the overall operating rate of liquid resin was 70-80%, and the overall operating rate of solid resin was 50-60%. The market price of liquid epoxy resin has increased, with positive inquiries and a good trading atmosphere. The demand for solid epoxy resin was generally average, and market purchases were replenished as needed, with small order transactions being the main focus. Overall, downstream demand was showing a stable to stronger trend.

Market outlook

An analyst from SunSirs believes that with the rise in glycerol prices and high cost support, coupled with the shutdown of some ECH production enterprises, the supply of ECH has been reduced. As a result, the attitude of holders of goods was positive, and the atmosphere of price increase was strong. At the same time, the overall downstream demand atmosphere has also improved. Supported by favorable supply and demand, it is expected that the market price of ECH will maintain a stronger trend in the near future, and more attention still needs to be paid to changes in market supply and demand.

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