Fire at Qilu Petrochemical Adds Fuel to China's Epichlorohydrin Price Rally During December 2023

Fire at Qilu Petrochemical Adds Fuel to China's Epichlorohydrin Price Rally During December 2023

Kim Chul Son 11-Jan-2024

China&#xx;s Epichlorohydrin market saw a significant rebound in December xxxx, pushing prices higher due to a complex interplay of supply constraints, downstream dynamics, and a key accident leading to the tight flow of goods in the market. Despite the limited downstream Epoxy resin support, the Epichlorohydrin market showed no signs of slowdown during December. The major fire incident at Qilu Petrochemical added a layer of uncertainty and potential for further price hikes in the Epichlorohydrin market.

In a surprising turn of events, December saw a notable reduction in the overall Epichlorohydrin supply in the region which has steeply risen the prices from xxxx USD/tonne to xxxx USD/tonne Epichlorohydrin FOB Ningbo, China assessed in December xxxx.  This supply constraint was attributed to the low production capacity utilization in the Chinese market. Manufacturers have prioritized fulfilling existing contracts, leading to limited spot supply and an...

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