Weak demand, epoxy propane market prices continue to decline

This week, the market price of epichlorohydrin has been continuously declining, reaching its lowest point this year. According to the monitoring and analysis system of Shengyi Society, as of April 25th, the benchmark price of Shengyi Society’s epoxy propane was 7150 yuan/ton, a decrease of -10.49% compared to early April.

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Price influencing factors:
Supply side: Due to the continuous decline in epoxy propane prices, many epoxy propane production enterprises are in a state of sustained losses, and some enterprises have reduced their losses and stopped production. Overall, the supply side has weak support for the epoxy propane market.
Raw material side: The market price of raw material propylene has shown a downward trend, which provides weak support for the cost of epoxy propane. According to the market analysis system of Shengyi Society, as of April 25th, the benchmark price of propylene in Shengyi Society was 6710.75 yuan/ton, a decrease of -0.52% compared to the beginning of this month (6745.75 yuan/ton).
On the demand side, the downstream polyether market’s capacity utilization rate has decreased, inventory has accumulated, and most enterprises have experienced a negative load reduction phenomenon. Pre May Day, stocking up on demand is the main focus, and the trading atmosphere is cold. The downstream terminal market is affected by tariff policies, resulting in a significant decrease in export orders and limited procurement of raw materials. Overall, the demand is facing insufficient support from the epoxy propane market, and it is expected that the price of epoxy propane will continue to decline in the later stage.
Market forecast:
An epoxy propane analyst from Shengyi Society believes that the downstream demand side of epoxy propane is weak, and pre holiday stocking is mainly based on demand. The market trading atmosphere is cold, and the demand support is insufficient. It is expected that the epoxy propane market will continue to bottom out in the later stage, and more attention should be paid to changes in raw material prices and downstream supply and demand.

http://www.lubonchem.com/

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