This week, the focus of the epichlorohydrin market is relatively weak, and prices have declined. As of December 27th, the benchmark price of epichlorohydrin in Shengyi Society was 9125.00 yuan/ton, a decrease of -1.08% compared to the beginning of this week (9225.00 yuan/ton).

Price influencing factors:

Raw material side: propylene is mainly sorted in a narrow range, while glycerol market prices are consolidating at a high level. The cost side of epichlorohydrin is still under pressure. According to the market analysis system of Shengyi Society, as of December 27th, the benchmark price of propylene in Shengyi Society was 6823.25 yuan/ton, a decrease of -0.33% compared to the beginning of this month (6845.75 yuan/ton).

Supply side: The increase in new production capacity of epichlorohydrin has eased the previous supply tension. This week, the overall operating rate of the epichlorohydrin 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 consumes inventory and purchases small amounts of replenishment as needed. The trading atmosphere for new orders is cold. Traders should maintain a mentality of buying up and not buying down, and be cautious and wait.

Market forecast: Analysts from Shengyi Society believe that cost side prices are under pressure, and downstream inventory consumption is the main factor. They should purchase according to demand and purchase raw materials cautiously. In addition, some enterprises are expected to restart their facilities and increase their burdens. It is expected that the supply of epichlorohydrin will increase next week, and there will be a slight fluctuation adjustment in market prices. More attention still needs to be paid to changes in market prices.