The Domestic Epichlorohydrin Market Continued to Operate in a Sluggish yet Stable Manner This Week

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The domestic epichlorohydrin market remained quiet and stable this week, with prices holding steady overall. Market sentiment was subdued; producers were cautious in issuing quotes, while downstream buyers largely adopted a wait-and-see approach, resulting in lackluster buying interest. Data from the SunSirs monitoring and analysis system indicates that as of June 16, the benchmark price for epichlorohydrin stood at 10,400 RMB/ton, a decline of 0.95% compared to the beginning of the month.

Factors Influencing Price:

Raw Materials: The raw material sector remains weak, further eroding cost support. Prices to 99.5% grade glycerin in East China have continued to decline. Prices to the feedstock propylene have also continued to fall; overall, the sustained downward direction in raw material prices has immediately weakened the cost support to ECH. According to the SunSirs market analysis system, as of June 16, the benchmark price to propylene stood at 8,667.67 RMB/ton, a decrease of 5.11% compared to the beginning of the month (9,134.33 RMB/ton).

Supply side: Enterprise operating rates remain at comparatively low levels. Multiple production units—including those of Shandong Minji, Jiangsu Haixing, Hebei Zhuotai, Zhejiang Zhenyang, and Binhua Group—are currently shut down, while Hebei Jinbang’s 80,000-ton/year glycerin-process unit is operating at low capacity. Producers are primarily focused on fulfilling existing orders, so there is currently no pressure regarding spot supply.

Demand side: Downstream demand remains sluggish, with no substantial improvement. Prices to the key downstream product—epoxy resin—are holding steady with only minor fluctuations; end-user procurement is limited to essential needs, and new order volumes are low. Overall market trading is quiet, with downstream buyers and end-consumers largely adopting a wait-and-see approach.

Market Outlook

As of June 12, tin prices have completed a cycle of extreme evaporative environment—characterized by a surge to a peak, a subsequent rout, and a rebound—and have entered a immediate tug-of-war between resistance from moving averages and support from essential demand, with price fluctuation remaining the dominant direction. Over the medium to long term, tight fundamentals and AI-driven demand continue to support an upward shift in the price baseline, though the market must first digest inventory levels and macroeconomic pressures in the near term.

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