1、 Price trend of epichlorohydrin:

(Figure: P value curve of epichlorohydrin product)

2、 Market analysis:

Product: epichlorohydrin market fell this week, according to the data in the large list of business agencies. Under the influence of the overall market environment, the downstream customers’ purchasing mentality is slightly weak. They are cautious and wait-and-see. The market trading atmosphere is light. As of the 22nd, the average price of epichlorohydrin enterprises was 9633.33 yuan / ton, down 2.36% compared with the beginning of the week and 17.90% compared with the same period last year. On the 22nd, the main quotation of epichlorohydrin market in China was around 9300-9800 yuan / ton.

On March 22, the epichlorohydrin commodity index was 68.03, unchanged from yesterday, down 49.12% from 133.71 (2019-10-29), the highest point in the cycle, and up 45.21% from 46.85, the lowest point on September 7, 2016. (Note: cycle refers to 2011-09-01 to now)

Industry chain: the market price of propylene in Shandong region in the upstream (3.16-3.20) fell 4.83% this week. By the end of 20th, the market turnover was 5650-6000 yuan / ton, and the mainstream price was 5650-5750 yuan / ton. Influenced by the OPEC meeting and various international economic policies, international crude oil rose and fell sharply; on the 16th, the price fell sharply again; on the 17th, it fell slightly; on the 18th, it fell sharply again; on the 19th, it recovered slightly. Due to the low production and inventory before propylene, the decline in the early stage is not significant, and the follow-up trend in the later stage is also obvious. It is expected that the price of propylene in the later stage will continue to be affected by crude oil, mainly in-situ shocks. On the 20th, the downstream epoxy resin, the overall market atmosphere is light, the actual single transaction is limited.

Industry: according to the price monitoring of the business association, in the 11th week of 2020 (3.16-3.20), there are 15 kinds of commodities rising month by month in the list of commodity prices in the chemical sector, among which there are 3 kinds of commodities rising by more than 5%, accounting for 3.4% of the number of commodities monitored in the sector; the top 3 commodities are isopropanol (26.40%), acetic anhydride (6.37%) and dichloromethane (5.38%). There are 39 kinds of commodities falling on a month on month basis, 14 kinds of commodities falling by more than 5%, accounting for 16.1% of the number of commodities monitored in the sector; the top three products falling are pure benzene (- 17.60%), chloroform (- 15.79%), crude benzene (- 14.52%). This week’s average was – 1.62%.

3、 Future forecast:

According to the epichlorohydrin analysts of the business club, in the near future, the upstream propylene price has fallen, the downstream epoxy resin trading is light, the epichlorohydrin has insufficient action power, and the market mentality is more cautious to wait and see. However, as the price continues to fall to a low level, the manufacturers’ low intention is weakened. It is expected that in the short term, the epichlorohydrin market will be dominated by stalemate consolidation and operation, and more attention should be paid to raw materials and mainstream markets Market transactions.