This week, the price of epoxy propane in the domestic market has increased. According to the monitoring system of Shengyi Society, as of November 6th, the benchmark price of Shengyi Society’s epoxy propane was 7900 yuan/ton, an increase of 2.6% compared to November 1st.
Price influencing factors:
Raw material side: The focus of the propylene raw material market is declining, which weakens the support for the epoxy propane market. As of November 6th, the benchmark price of propylene in Shengyi Society was 5970.75 yuan/ton, a decrease of 1.44% compared to the beginning of this month (6058.25 yuan/ton).
Supply side: Fluctuations in the supply side have affected the temporary supply tension of epoxy propane. Recently, due to the short-term negative load reduction and suspension of shipments by Bohai Chemical, as well as the fact that the supply of goods in the Lianyungang region has been mostly delayed until mid to late this year, the actual available supply of goods is less than the theoretical quantity, which offsets the market growth performance and causes a short-term tight situation. The tight supply situation has led to an increase in the price of epichlorohydrin.
Demand side: Downstream demand side is forced to follow up on the purchase of epoxy propane, with a strong sense of caution. The performance of new orders is weak, and some companies have experienced an inverted market, which has suppressed their purchasing ability. Overall, the demand side support for epoxy propane market is limited. It is expected that the epoxy propane market will stagnate and stabilize in the later stage.
Market forecast:
Business Society’s epoxy propane analyst believes that the decline in the focus of the propylene market on the raw material side has weak support for epoxy propane, limited downstream demand support, and forced procurement to follow suit. There is a strong cautious wait-and-see sentiment. It is expected that the epoxy propane market will stagnate and stabilize in the later stage, and more attention should be paid to changes in raw material prices and market supply and demand.