Epichlorohydrin supply surface tightened, prices continue to rise

Since last week, China’s epichlorohydrin market into the uplink channel, the price again and again hit a new year to the East China market, for example, the end of July market negotiations in the 8000-8100 yuan / ton, closing today, the market price has risen to 9,000 yuan / Ton near, or up to 11.80%. However, the downstream industry in the traditional off-season, the demand has not significantly improved, coupled with the impact of environmental protection and cost, the market is also relatively light atmosphere of the negotiations, high-priced transactions are limited.

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Epichlorohydrin plant operating load is not high, the market spot has significantly reduced. The main factory Dafeng device and Yihai Kerry devices are in the parking, the other plant installation load more than five or even lower, the manufacturers spot inventory is small, the market supply slightly tight, but the downstream epoxy resin by environmental protection and demand Constraints on the consumption of raw materials in general, the market did not improve the new trading atmosphere.

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Short-term look at the downstream demand in the off-season, only part of the liquid resin downstream orders better, epichlorohydrin plant maintenance to improve the fundamentals of the situation, the production of new single offer also rise, the current Shandong Haili Chemical single offer 9,000 yuan / ton sent to East China, higher than the July low of nearly 1,500 yuan / ton, the venue is simply a little up with a slow, high prices still need time to implement. At present, the domestic environmental protection and safety supervision efforts, Shandong Haili chemical start limited, Jiangsu Haixing chemical short-term maintenance will resume full load start, and glycerol factory with the spot price increases the cost pressure gradually reduced, follow-up To enhance the space, is expected to short after the tight, the market will gradually increase the stock supply, and the main downstream of the epoxy resin factory no clear intention to raise start, the fundamentals of good and lasting to be wait and see. Short-term domestic sales of epichlorohydrin is expected to remain high consolidation, but high-priced stalemate after digestion risk.

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