Epichlorohydrin to Change its Market Sentiments in China in January 2023
- 15-Dec-2022 11:48 AM
- Journalist: Kim Chul Son
The price of Epichlorohydrin was rising every week in November 2022. In terms of demand and supply, Epichlorohydrin had a good utilization rate, its production companies mostly delivered orders, and there was manageable supply-side pressure. Downstream market inquiries had increased, purchasing enthusiasm was nice, and the market environment improved.
Epichlorohydrin, a commercial base material widely used in construction, transportation, and various other sectors, experienced expanded demand from end-use businesses, and improved interest for downstream industry products has prompted the development of the Epichlorohydrin market in China in the long stretch of November.
From the upstream and downstream industries' perspective, the price of feedstock Propylene fluctuated, whereas the price support for Epichlorohydrin was nearly constant. The price of downstream epoxy resin was found to be increasing because of good demand for this product from adhesives and other industries, which provided the Epichlorohydrin market with solid support.
However, ChemAnalyst's observations indicate that the cost support at this time is average, as it expects the cost of Feedstock Propylene to come down a bit. The market is somewhat light because the orders from downstream firms are only moderate. Until the end of the month (December), the company anticipates that the Epichlorohydrin market will continue to follow the same trend and expects this product's price to drop by 2% overall this month. As on 9th December 2022, the cost of this product stood at USD 1,627 per MT on a FOB-Ningbo basis.
However, as the demand for epoxy resin rises, the Epichlorohydrin market in China is expected to expand. Epoxy resins are mostly used in sealants, adhesives, and high-performance coatings.
The growing use of epoxy resins that are free of bisphenol A could support expansion in the Epichlorohydrin market segment. This product's consumption could rise due to the rising demand for epoxy resins. The rise in the production of plastics and other epoxy resins could be the key driver of growth in demand, which is anticipated to be strong in the coming year (2023). The firm has predicted the price of Epichlorohydrin to grow by 3% in January 2023.