This week, the mainstream price of epoxy propane in the market has exceeded the 10000 yuan mark. In the main production area of Shandong, the mainstream negotiated price in the market has reached 10500 yuan/ton (ex factory in foreign exchange), with a daily increase of 1500 yuan/ton, an increase of 16.67%. Some production enterprises also reported a factory price of 10500 yuan/ton on March 9th. According to the monitoring system of Shengyi Society, as of March 10th, the benchmark price of Shengyi Society’s epoxy propane was 11016.67 yuan/ton, an increase of 37.71% compared to March 1st.
Raw material side: Recently, international oil prices and imported raw material prices (such as propane and methanol) have risen significantly. This directly increases the production cost of propylene and other epoxy propane raw materials, forming a transmission chain of “rising import costs → rising propylene costs → rising epoxy propane prices”. The liquid chlorine market is fluctuating upwards, further increasing cost support. According to the monitoring system of Shengyi Society, as of March 10th, the benchmark price of propylene in Shengyi Society was 9701.00 yuan/ton, an increase of 51.32% compared to the beginning of this month (6411.00 yuan/ton).
Supply side: The overall operation of domestic epoxy propane production facilities is mainly stable, but there are fluctuations in load reduction in some individual enterprises. Overall, the industry’s operating rate remains relatively high, at around 77.34% to 80%. However, the shipping atmosphere of suppliers is good, and some companies have even temporarily closed their orders without reporting.
On the demand side: Downstream polyether and other enterprises face huge cost pressures, with prices passively rising. Some enterprises have expressed expectations of reducing negative costs, and their purchasing mentality has also turned cautious, mainly focusing on following up on essential needs or executing contracts.
Market forecast: Business Society’s epoxy propane analyst believes that the significant increase in raw material prices will support the epoxy propane market price, and downstream enterprises will passively increase prices, but follow-up is limited, with rigid demand procurement being the main focus. It is expected that the price of epichlorohydrin will remain stable at a high level in the short term. More attention should be paid to changes in raw material prices and market supply and demand.
| http://www.pva-china.net |