The Italian Epichlorohydrin (ECH) market defied expectations in early July xxxx, exhibiting remarkable stability despite a confluence of forces pushing prices in opposite directions. This stability occurred even as the downstream construction sector, a key consumer of ECH, continued to experience a decline. This stability was attributed to high logistical issues including a port strike in Hamburg along with the rise in freight charges which certainly balanced the supply and demand to settle at USD xxxx/MT, ECH CFR Genoa, Italy during the first week of July xxxx.
The construction sector’s sluggish performance was attributed to several factors which affected the ECH demand in Europe. High inflation across Europe has eroded consumer spending power, impacting demand for new buildings and renovations. To combat inflation exceeding its target, the European Central Bank (ECB) raised interest rates. This move, coupled with a general economic uncertainty, dampened construction activity, particularly...
