I. The price trend of epichlorohydrin:

According to the business association’s big list data, the market price of epichlorohydrin rose in July. The average price quoted by domestic epichlorohydrin enterprises was 14 600.00 yuan/ton on the 1st day and 17 466.67 yuan/ton on the 31st day. The market rose 19.63% in the month. In the three-month cycle, the increase was 61.73% year-on-year.

II. Market analysis:

Products: In July, the market price of epichlorohydrin rose as a whole, and began to stabilize in the second half of the month, with little fluctuation. Due to the parking status of the main factories in China, the shortage of spot supply, rising prices and high offers from the holders. However, with the rapid rise of prices to high levels, the downstream of high-price raw materials have strong resistance, lack of purchasing intentions, weak trading atmosphere, the end of the month epichlorohydrin market prices fell slightly. Up to 31 days, the mainstream quotation in the East China market is around 17,000 yuan/ton, and the acceptance is delivered to the surrounding areas. Mainstream quotation in Shandong market is around 16 800 yuan/ton, self-raised. Mainstream market quotation in Huangshan area is around 17,000 yuan/ton, acceptance delivered.

Industry chain: The upstream propylene market price shocks in July, fluctuations are more frequent. At the beginning of the month, the average price of enterprises was 7669 yuan/ton, and at the end of the month, it was 7977 yuan/ton, with a monthly increase of 4.01%. As of 31 days, the market turnover is about 7950-8100 yuan/ton, and the mainstream price is about 7950 yuan/ton.

Industry: According to the price monitoring of business associations, in July 2019, 43 kinds of commodities rose annually in the chemical sector, of which 23 commodities increased by more than 5% accounted for 27.4% of the monitored commodities in the sector; the top three commodities were yellow phosphorus (47.32%), phosphoric acid (26.94%) and hydrochloric acid (23.33%). There are 33 kinds of commodities with a decline of more than 5%, accounting for 11.9% of the monitored commodities in this sector. The products with the first three declines are trichloromethane (-16.39%), sulfur (-13.71%) and bromine (-9.66%). The average increase and decrease in July was 2.41%.

3. Future market forecast:

Analysts of the business association Epichlorohydrin think that the space for further increase of Epichlorohydrin in the later period is limited by the weak downstream gas purchases, high-end transactions are slightly difficult, the focus of negotiations has fallen back, and it is expected that August Epichlorohydrin interval consolidation will be the main, fluctuations are still possible.