Epichlorohydrin Price Trend and Forecast

Epichlorohydrin Regional Price Overview

Get the latest insights on price movement and trend analysis of Epichlorohydrin in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Epichlorohydrin Price Trend for the Q4 of 2024

Asia

In Asia, Epichlorohydrin prices experienced notable volatility during Q4’24. Early in the quarter, the market saw an uptick in prices due to supply disruptions, especially from key producers in China. Scheduled maintenance shutdowns at major plants, along with the impact of a typhoon, tightened the supply situation significantly. This led to price hikes, particularly in November. Furthermore, the imposition of anti-dumping duties by India on imports from China, South Korea, and Thailand further added upward pressure on prices in the region.
 

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Despite these constraints, by the end of November, the market became more cautious as demand softened, resulting in a decline in trading volumes. Downstream demand, particularly from the construction sector, showed signs of recovery, but this did not fully offset the negative impact of high prices. In contrast, a drop in feedstock propylene prices during the period slightly eased production costs but failed to counteract the higher costs triggered by supply constraints.

Europe

In Europe, the Epichlorohydrin market faced a different set of challenges. While the Asian market experienced tightness, Europe struggled with competitive pricing pressures. Despite higher global demand for Epichlorohydrin, the European market saw some price reductions. This was partly due to the softer demand from key downstream industries such as automotive and construction, where consumption slowed as the year drew to a close. Additionally, the market faced competition from other regions, particularly Asia, where lower costs allowed for more competitive pricing. While supply disruptions in Asia did cause some shifts in the global market, the European market remained relatively stable, with no significant price surges.

North America

In North America, Epichlorohydrin prices followed a trend of moderate fluctuations. The region experienced some supply tightening due to global factors, but domestic production levels remained steady. Price adjustments in the region were influenced by the availability of both local and imported materials. Feedstock prices, such as for propylene, had an impact on production costs, but the influence was less pronounced compared to Asia. The downstream demand in North America was somewhat steady, driven by industries like automotive and construction, although the overall market sentiment remained cautious. By the end of the quarter, there was no major shift in pricing, and prices largely held steady despite fluctuations in global market conditions.

Analyst Insight

According to Procurement Resource, Epichlorohydrin prices may continue to show uncertainty. While supply chain issues could persist in the short term, demand from downstream industries will be a key factor in shaping price trends.
 

Epichlorohydrin Price Trend for the Q3 of 2024

Asia

The epichlorohydrin (ECH) market witnessed significant volatility during Q3'24, primarily influenced by the fluctuating propylene feedstock prices and uncertain market conditions. Early in the quarter, ECH prices experienced a downward trajectory following the bearish propylene market trends and subdued downstream demand.

The market sentiment improved briefly during mid-quarter due to supply concerns amid Middle East tensions, which caused feedstock propylene prices to surge. However, the price gains were short-lived as market uncertainty prevailed, leading to price stabilization albeit at lower levels.

Europe

European ECH markets mirrored the Asian trends, with prices initially declining due to weaker propylene values and sluggish demand from the epoxy resin sector. The market witnessed a temporary recovery during August amid Middle East crisis-induced supply concerns. Prices eventually stabilized towards the quarter-end, though market participants remained cautious due to persistent uncertainty in feedstock availability and downstream demand patterns.

North America

The North American market experienced similar price volatility during the said period. Supply chain disruptions and geopolitical tensions in the Middle East provided temporary support to prices mid-quarter. However, the market later stabilized as feedstock uncertainty and variable downstream demand continued to influence trading sentiment. The quarter ended with prices showing stability, but market participants remained watchful of further developments.

Analyst Insight

According to Procurement Resource, Epichlorohydrin (ECH) prices are expected to remain sensitive to feedstock propylene price movements and geopolitical developments in the coming months.
 

Epichlorohydrin Price Trend for the Q2 of 2024

Asia

The Chinese epichlorohydrin market carried the fluctuating momentum of previous quarters as the drivers of the market failed to provide sufficient support. Initially, the tight supply of the commodity and pre-festival stocking led to a slight incline in the prices but after the holiday season, the recovery of the downstream market was slow and insufficient to drive the momentum of the market.

Although the monetary stimulus provided by the Chinese government to boost the construction activities provided some relief to the trading and manufacturing communities its effect on the pricing of epichlorohydrin was yet to be observed. The feedstock component of the market also witnessed frail growth, further dampening the prospects of the market, visible in the oscillating trajectory of epichlorohydrin prices in the second quarter of 2024.

Europe

The sluggish performance of the epichlorohydrin market in the European countries during the second quarter of 2024 was a consequence of the bleak outlook of end-user industries and their frail procurement rates. Although, amid the high freight there was a reduced influx of Asian imports in the market, however, the domestic demand dipped far more in comparison to the production and imports, suggesting an overall dim outlook of the market throughout Q2'24. However, towards the end phase, the reduction of interest rates by the European Central Bank bore some positive results, but it was yet insufficient to reverse the trajectory of epichlorohydrin prices, but the traders anticipated that it might favor them in the upcoming months.

North America

In the second quarter of 2024, the U.S. epichlorohydrin market experienced a moderate price increase despite average demand from the construction sector. After initial fluctuations, the epichlorohydrin prices rose in early June, driven by logistical challenges and pre-hurricane season stockpiling. The acute port congestion across Asia and early ocean peak season disruptions, including vessel rerouting due to the Red Sea situation, significantly raised transportation costs.

While stable feedstock costs for propylene and reduced crude oil prices helped mitigate production costs, the surge in freight charges overshadowed these benefits. Additionally, the construction sector's sluggish performance, affected by high interest rates causing project delays, kept overall domestic demand muted. However, U.S. consumers began stockpiling epichlorohydrin in anticipation of the hurricane season, fearing potential production disruptions. This precautionary buying provided a modest boost to epichlorohydrin prices despite the soft demand.

Analyst Insight

According to Procurement Resource, the price trend of Epichlorohydrin is expected to follow the trail set by the momentum of downstream industries' procurement rates and limited support of feedstock commodities in the upcoming quarters.
 

Epichlorohydrin Price Trend for the Q1 of 2024

Asia

In the early phase of the first quarter of 2024, the Chinese epichlorohydrin market declined, although at a slower pace as compared to the previous quarters. However, the market gained its momentum in the end phase, and thus, the epichlorohydrin prices saw a notable price hike, driven primarily by a tight spot flow of epichlorohydrin due to low working production capacity of feedstock propylene, despite weak demand from downstream epoxy resin market.

The maintenance shutdowns of propylene plants further restricted access to importing countries, impacting epichlorohydrin production costs. Despite some improvement in feedstock glycerol prices, it had minimal influence on Epichlorohydrin pricing. Downstream demand adjustments were minimal, with subdued demand in the construction sector; despite these challenges, the Epichlorohydrin market maintained a bullish trend.

In India, however, the market attained stagnancy, showing resilience amid the oscillating cost of feedstock materials and limited support from the downstream industries. The slowed-down production activities helped stabilize the supply-demand equilibrium, favoring the epichlorohydrin price trend.

Europe

An interplay of downstream demand, the functioning of the trading sector, and the cost of feedstock materials shaped the oscillating prices of epichlorohydrin in European countries during the first quarter of 2024. As observed in Asia, downstream industries presented only a limited demand for the commodity due to the rising pressure of inflation and contraction of consumer spending appetite.

The domestic production, however, outpaced the demand scenario and widened the gap between the supply and demand sectors of the market, well reflected in the pricing movement of epichlorohydrin during the first quarter of 2024.

North America

In the US market, epichlorohydrin prices experienced a significant downturn in Q1 of 2024, dropping primarily due to ample inventories. The traders attributed this accumulation of inventories to the downturned demand from the overseas downstream industries as the global trading sector started looking forward to alternative channels to the Panama Canal and the Red Sea. Thus, despite strong performance in the automobile and construction sectors in the domestic market, the epichlorohydrin prices continued to fall.

The trend persisted as traders opted for destocking inventories in the later part of the first quarter. However, the rise in prices of major feedstocks like ethylene and propylene prices favored the market momentum, which might direct the epichlorohydrin prices upward in the next quarter. Additionally, international market dynamics, particularly in Brazil, Mexico, and Canada, also play a crucial role in shaping the overall demand for Epichlorohydrin.

Analyst Insight

According to Procurement Resource, the price trend of Epichlorohydrin is estimated to encounter a number of struggling stances in the form of limiting demand from the end-user industries and depreciating global trading activities.
 

Epichlorohydrin Price Trend for the October - December of 2023

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Asia

The smooth sailing journey of epichlorohydrin prices was disrupted by the supply-side constraints that, in turn, worked in favor of epichlorohydrin market trend. The reduction in supply rates during the end phase of the fourth quarter was due to the temporary closures for maintenance in key regions, and Qilu Petrochemical's fire also disrupted propylene production, an important feedstock of epichlorohydrin. However, despite tepid downstream demand, the tight supply on account of various factors presented a favorable market for the traders, and epichlorohydrin price trend rose.

Europe

The price trend of epichlorohydrin in the European countries were based on the limited movement in the downstream market. During the initial and later phases of the quarter, the prices followed a bearish trend. However, contrary to the feeble condition of the construction sector, European epichlorohydrin prices rose in November. Despite stagnant epichlorohydrin demand, slight disruptions occurred in the supply chain due to rail driver strikes in Germany and port strikes in Belgium. But soon, the spike faded out, and the prices got back on their southward movement.

North America

Over the fourth quarter, the US Epichlorohydrin market saw a significant price downturn, mainly due to a notable decrease in the cost of upstream products. This decline played a significant role in reducing the overall production rates of epichlorohydrin manufacturers. The manufacturing sector faced a slowdown, and the number of new orders declined, leading to a downturn in the market activities of epichlorohydrin.

Analyst Insight

According to Procurement Resource, the price trend of Epichlorohydrin are estimated to experience a slowdown in the upcoming quarters, given the lackluster market demands and uncertainties in the pricing fundamentals.
 

Epichlorohydrin Price Trend for the July - September of 2023

Asia

The effect of adverse weather conditions and unfavorable turns taken by the demand from the construction sector led to the decline in the epichlorohydrin price trend. In addition to this weak demand scenario, the supply of epichlorohydrin surged in the Asian countries causing its stockpiles to rise significantly.

This disruption in the supply-demand equilibria proved to be a challenge for the traders, and as a result, they had to reduce their price quotations for epichlorohydrin. However, in the second half of the said quarter, the cost of feedstock materials supported an upwards trend of epichlorohydrin prices.

Europe

The fall in construction activities and the hike in interest rates charged by the banks due to the surge in inflation pushed the epichlorohydrin prices in a downward movement. There was some relief from the cost of raw materials as they surged during the third quarter of 2023 and supported the stabilization of the epichlorohydrin prices, but challenging market conditions and consistent decline in the profit margins of the manufacturers kept the epichlorohydrin in the negative zone.

North America

North America witnessed increased competition in the epichlorohydrin market due to the rise in cheap imports from Asian and European countries. Further, the demand from the downstream resin industries was subdued initially. But soon, the demand scenario of epichlorohydrin improved, and enhancement in the trading activities and export rates led to the inclination in the epichlorohydrin price trend.

Analyst Insight

According to Procurement Resource, the price trend of Epichlorohydrin are expected to perform moderately in view of its fluctuating demand from the downstream industries.
 

Epichlorohydrin Price Trend for the First Half of 2023

Asia

The Asia-Pacific market declined in terms of epichlorohydrin prices as the cost of feedstock propylene declined, and demand from the textile and cosmetics sector remained weak. The market sentiments did not support the struggling prices as the market struggled from the contradicting nature of supply and demand dynamics.

The prices of Epichlorohydrin averaged around 7800 RMB/MT towards the end of June’23. The ripple effects of the global economic slowdown also had a negative impact on the trend, along with low demand from downstream industries resulting in rising stockpiles of products, contributing towards the falling prices of Epichlorohydrin.

Europe

In Europe, the price trend for Epichlorohydrin were stagnant as the cost of feedstock material propene remained stable in the first half of 2023. The demand from downstream epoxy resin and related industries and well-balanced supply-demand equilibria helped stabilize the prices of Epichlorohydrin in the European region. The purchasing potential of buyers also did not witness any alterations, and steady demand from the textile and manufacturing sectors also supported the stable trajectory of epichlorohydrin prices in Europe.

North America

The import activities of Epichlorohydrin from Europe and other nations increased in the North American region, hampering the domestic prices of Epichlorohydrin in the first half of 2023. In addition, the decreased demand and weak performance of the paint and cosmetics industries in the region aided the fall in prices. During the initial months of the year, the prices were stagnant, but as the first quarter approached an end, the prices started declining majorly and continued to do so in the second quarter due to the dwindling prices of feedstock propene.

Analyst Insight

According to Procurement Resource, the price trend for Epichlorohydrin are expected to follow a fluctuating trend in the upcoming months. The end-user sectors, such as paints, cosmetics, textiles, etc., are expected to remain volatile, and the weak trajectory of the global economy will affect the epichlorohydrin market negatively.
 

Epichlorohydrin Price Trend For the First Half of 2022

Asia

Epichlorohydrin (ECH) prices inclined steadily in the first quarter. With the increasing buying sentiments and high raw material prices, the manufacturers increased their quotations to maintain healthy market dynamics. The firm offtakes in the market further supported these raised prices. ECH prices averaged 2875 USD/MT towards the end of Q1.

With the resurgence of covid-19 in China leading to the shutting down of industrial output, the market inventories dwindled. Given the geopolitical interferences, the logistics and supply suffered. The inflationary pricing negatively impacted the downstream demand, unleashing fluctuating trend in the Epichlorohydrin prices.

Europe

The price trend for ECH recorded an upwards trend in the said period. The firm demand from the coatings/adhesives, plastics and textile sectors supported the high prices of ECH.

The economic and political downturn unleashed by the Russian invasion of Ukraine gave way to runaway inflation in some parts of the European region. The high-power consumption rates, soaring raw material prices, and complex logistics amid healthy downstream demand caused the ECH prices to surge throughout the said period.

North America

Due to the surging crude oil and natural gas prices, feedstock propylene prices peaked dramatically. The supply-side constraints amid labour shortages and inflated freight and transportation costs led to high prices of ECH averaging 3126-3361 USD/MT. However, the prices started to oscillate in Q2 as the demand from the downstream resin and paint manufacturers suffered.

Analyst Insight

According to Procurement Resource, Epichlorohydrin prices will further decline in the coming quarter. As the supplies from Russia and OPEC+ enter the market, the upstream cost pressure will likely ease. The lowering demand from the textile and cosmetic sector will further reduce the offtakes from the market affecting the ECH prices.

Procurement Resource provides latest prices of Epichlorohydrin. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.