Epichlorohydrin Prices Continue to Fluctuate in Asia
- 05-Oct-2021 12:35 PM
- Journalist: Nina Jiang
Epichlorohydrin prices rose to around $3261 per tonne in September end which were a 45% increase from the price levels of September starting. The prices have again started to fall in the first week of October with the prices reaching to around $3250 per tonne on September 4.
The reason for price fluctuation has been prices of the raw materials and fluctuating downstream demand. The prices of raw glycerin were high in the beginning of September with some of the plants shutting down for maintenance tightening the spot supply. The prices of Propylene, another raw material have also been fluctuating.
The prices of Propylene experienced rise in September end which caused the prices of Epichlorohydrin to skyrocket as compared to September beginning. The prices of Propylene were at around $1231 per tonne in September end which was a 3.6% increase as compared to prices on September 1.
The price fluctuation in Epichlorohydrin has also affected to prices of the downstream Epoxy Resin in Asia. The prices of Epoxy resin were at around $ 5795 per tonne in September end.
Epichlorohydrin is a clear colourless liquid with a sweet pungent odour. It is produced mainly via the chlorination of Propylene to make Allyl Chloride as an intermediate step to Epichlorohydrin. Around 75% of Epichlorohydrin demand globally comes from the Epoxy Resin market. Epoxy Resins offer corrosion resistance, solvent and chemical resistance, hardness, and adhesion. They are used in the manufacture of adhesives, coatings, and structural parts for the automotive, aerospace, electronics, and construction industries.
As per ChemAnalyst, “the prices of Epichlorohydrin are expected to continue to fall in the upcoming week as the prices of Propylene have started to settle down at lower levels. The prices will tend to gradually stabilize after falling a certain amount. The stabilization in the prices of Epichlorohydrin will also initiate stabilization in the prices of downstream Epoxy Resin.”