This week, the domestic epoxy propane market price has remained stable temporarily. According to the monitoring system of Shengyi Society, as of August 14th, the benchmark price of Shengyi Society’s epoxy propane was 7633.33 yuan/ton, a decrease of 6.5% compared to the beginning of the month.
Price influencing factors:
Raw material side: This week, the price of raw material propylene has decreased, resulting in a decrease in the production cost of epoxy propane, reducing price support and intensifying downward pressure on prices. It is expected that the epoxy propane market price will fluctuate weakly in the later stage. According to the market analysis system of Shengyi Society, as of August 14th, the benchmark price of propylene in Shengyi Society was 6633.25 yuan/ton, an increase of 3.11% compared to the beginning of this month (6433.25 yuan/ton).
Supply side: The market supply has significantly increased, expected to reach around 19000 tons. Overall, the supply of epichlorohydrin is showing a loose trend, which has increased the competitiveness of the industry. It is expected that the price of epichlorohydrin will consolidate in the near future.
Demand side: The downstream trading atmosphere of epoxy propane is average, and the purchasing enthusiasm is relatively flat, mainly consuming previous orders. Overall, the demand is facing weak support from the epoxy propane market, and the market may mainly consolidate in the later stage.
Market forecast:
An epoxy propane analyst from Shengyi Society believes that the concentrated release of production capacity in the epoxy propane market has led to a relatively loose supply side and a decline in raw material prices. In addition, downstream markets have a strong demand for purchasing, resulting in an average trading atmosphere. It is expected that the epoxy propane market will mainly consolidate in the short term, and more attention should be paid to changes in raw material prices and upstream and downstream supply and demand.
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