China epichlorohydrin (ECH) market performed strong in the week ending on January 26th, tight supply and rising feedstock cost supported 5.84% increase on FOB Ningbo price to USD 1,631/MT, and pre-holiday demand pushed up the market. High propylene prices and decreased operating rate for production greatly benefited production economics, and glycerine prices rose on tighter availability of biodiesel co-product in the market. The supply was further restricted by a few scheduled maintenance shutdowns on propylene at several locations in East China such as Ningbo, Qingdao, and Zhejiang which meant less availability of the feedstock. Demand-wise, consumption of epoxy resins benefited from early recovery, mainly from consumers in coatings and composites, leading to restocking momentum prior to the Lunar New Year. Logistical difficulties at Ningbo port where vessel delays lengthened up to three days reduced availability for prompt delivery and maintained the upside momentum.
