With Minor Price Changes, the Epichlorohydrin Market in China Alleviated in January
- 01-Feb-2023 3:25 PM
- Journalist: Jung Hoon
The market for Epichlorohydrin steadied with minor variations in January 2023. During the first half, the market was adjusted in a weak position, and the downstream companies were more cautious and patient. The price of raw material propylene increased in the second half of the month, while the price of raw material glycerin remained stable.
On the cost and supply sides, there was no pressure. The Epichlorohydrin market was operating lightly and smoothly because the downstream goods preparation before the spring festival was coming to an end, and logistics and transportation were limited. The market price of Epichlorohydrin remained stable after the festival because manufacturers primarily delivered contracts and orders prior to the festival.
As the demand for epoxy resins rises, the Epichlorohydrin market in China is expected to expand in the coming months. Sealants, adhesives, and high-performance coatings are the most common applications for epoxy resins. The anticipated increase in housing and commercial development projects in the coming months may also increase demand for these products.
Epoxy resin has seen a rise in usage due to its adaptability, durability, simplicity of application, and quick drying time. The growing use of epoxy resins that are free of Bisphenol A (BPA) is another factor that will support growth in this market segment. Epichlorohydrin consumption will rise as the demand for epoxy resins rises. This, in turn, will make the market even bigger.
However, the extension of Covid- 19 restrictions could jeopardize the robust growth of Epichlorohydrin’s market in the coming months and possibly impact prices in the event of restrictions on raw materials’ availability. The availability of propylene largely drives Epichlorohydrin production. There might be significant uncertainty regarding the stability of propylene supplies if curbs continue; however, producers would be able to meet their production demands, given the relative abundance and diversity of supplies for crude oil, butadiene, and propane.
As on 27th January 2023, the cost of Epichlorohydrin stood at USD 1,543 per MT on FOB – Ningbo basis.