1、 Price trend of epichlorohydrin:

Epichlorohydrin market weakened this week, according to the data in the business club’s large list. As of the 10th, the average price of epichlorohydrin enterprises was 14233.33 yuan / ton, down 0.47% compared with the beginning of the week, and up 33.65% compared with the same period last year. On January 10, the epichlorohydrin commodity index was 100.52, flat with that on January 9, 24.82% lower than the highest point 133.71 (2019-10-29) in the cycle, and 114.56% higher than the lowest point 46.85 on September 7, 2016. (Note: cycle refers to 2011-09-01 to now)

2、 Market analysis:

Product: epichlorohydrin market weakened this week. On June 6, the main quotation of epichlorohydrin market was 14000-14400 yuan / ton, and there was no inventory pressure on the spot. The manufacturer kept a firm price mentality, but the downstream factory had a relatively abundant stock of raw materials, and the intention to purchase high-priced raw materials was not high. The high-end shipment of the carrier was blocked, and the majority of profits were offered. On October 10, the main quotation of epichlorohydrin market in China was lowered to around 13500-14200 yuan / ton.

Industry chain: this week (1.6-1.10) the market in the upstream propylene Shandong region rose, or 2.53%. At present, the market transaction has risen to about 7050-7300 yuan / ton, and the mainstream price is about 7050 yuan / ton. The Middle East event has shaken the international crude oil price. The shutdown of domestic and foreign dehydrogenation units has led to the shortage of propylene supply. Although the downstream operating rate has declined and the profit has decreased, the propylene market price may still rise in recent days. On the 10th, the downstream epoxy resin was in high-level finishing operation, and the factory made firm offer.

Industry: according to the price monitoring of the business agency, in the first week of 2020 (1.6-1.10), there are 27 kinds of commodities rising month by month in the list of commodity prices in the chemical industry sector, among which there are 3 kinds of commodities rising by more than 5%, accounting for 3.5% of the number of commodities monitored in the sector; the top 3 commodities are bisphenol A (9.65%), glycol (7.92%), ammonium chloride (5.09%). There are 18 kinds of commodities falling on a month on month basis, and 1 kind of commodities falling by more than 5%, accounting for 1.2% of the number of commodities monitored in this sector; the top three products falling are caustic soda (- 5.22%), chloroform (- 4.55%), sodium metabisulfite (- 3.79%). This week’s average was 0.35%.

3、 Future forecast:

Epichlorohydrin analysts believe that in the near future, the price of raw propylene has been rising continuously, with strong cost support. With the approaching of the Spring Festival, the enthusiasm for purchasing epoxy resin in the downstream is weakened, and the action force of epichlorohydrin is insufficient. It is expected that epichlorohydrin market will be dominated by weak consolidation operation in the short term.