In August 2025, Epichlorohydrin (ECH) prices in Ningbo, China increased by 4.6% amid tight spot supply, rising feedstock costs (propylene, glycerol), and Yangtze Delta logistics processes that were impacted by a storm in late July. The port congestion and Jiangsu/Shandong turnarounds affected tonnage as operating rates remained at 50-60%. Epoxy resin producers were selective in their restocking decisions due to weak manufacturing PMIs and construction slowdowns caused by the monsoon, thus enabling only small purchases. ChemAnalyst expects prices to decline in September as the restocking effort declines, and demand continues to be dull. In addition to weak demand, exporters were still cautious in seeking new ECH volumes in the export market due to increased global trade tensions, including U.S. tariffs.
In China, Ningbo, Epichlorohydrin (ECH) prices rose 4.6% in August 2025, attributed to limited spot availability, rising feedstock prices (propylene and glycerol), and logistical issues in the Yangtze Delta, which limited quick shipments and pushed buyers to secure local FOB transactions. Intermediate epoxy resin producers were inventory cautious and only looking to fulfill short-term needs. However, decreasing manufacturing PMIs and slowdowns as a result of monsoons did generally keep the market mood subdued, tempering the increase in ECH prices.
According to ChemAnalyst, Epichlorohydrin prices are expected to fall in September 2025 in China, as the downstream epoxy resin restocking was completed in August, and the likely prospect of new orders remaining low in September 2025. There were also approximately low number of downstream companies that tentatively began increasing prices; however, in the presence of weak end-user demand, as well as a subdued trading environment, had lowered the chances of actual orders to come under pressure. In summary, demand-side support for the Epichlorohydrin market is expected to be weak in the near term.
When August 2025 started, China's Epichlorohydrin market experienced tight supply conditions, which caused prices to increase by 4.6%. Port congestion in Ningbo and Shanghai, which intensified after a tropical cyclone in late July, increased vessel wait times in port and yard congestion, which reduced the prompt tonnage of Epichlorohydrin.
Localized production turnarounds in Jiangsu and Shandong further strained supply, with industry operating rates lingering between 50-60%. Sellers leaned toward term contracts or FOB Ningbo sales to mitigate demurrage risks.
Feedstock costs added pressure in the Epichlorohydrin prices as glycerol and residual glycerin prices rose slightly in early August compared to late July, reducing earlier cost relief, while propylene prices climbed due to tighter regional PDH and refinery allocations, spurred by short-cover buying.
Inventory levels across the Epichlorohydrin and downstream epoxy resin supply chains remained lean to moderate, as producers and merchants shied away from heavy stockpiling amid margin concerns.
Meanwhile, Epoxy resin manufacturers, the primary Epichlorohydrin consumers, showed selective restocking, with larger firms securing supplies for late August and September deliveries. However, most buyers adopted a conservative approach, limiting inventory to 10-14 days due to weakening manufacturing PMIs.
The monsoon season in southern China further dampened activity, stalling construction projects and curbing coatings sector demand. Despite low end-use demand in some construction and coatings applications, Epichlorohydrin buyers favored smaller, frequent purchases over large forward commitments, reflecting wariness of market volatility.
Global trade uncertainties, including U.S. tariffs, added to the cautious sentiment, with downstream players carefully balancing near-term needs against economic headwinds.
These supply constraints, coupled with logistical hurdles, bolstered FOB offers and drove the price uptick.
