Asia
Epichlorohydrin (ECH) prices in Asia moved upward during Q1'26, supported by firmer propylene costs and improving epoxy resin demand following the Lunar New Year holidays. Chinese producers maintained relatively stable operating rates, while downstream consumption from coatings, electrical laminates, wind energy, and engineering composites gradually improved. Higher crude oil prices and tightening petrochemical margins strengthened feedstock economics, providing producers with better cost support. Export demand also improved as Asian suppliers remained competitive in global markets. However, abundant domestic production capacity and cautious downstream procurement prevented a sharper price rally. Toward the end of the quarter, escalating Middle East tensions and growing concerns over shipping disruptions supported precautionary buying and strengthened regional market sentiment, although overall price gains remained primarily cost-driven rather than demand-led.
Europe
European ECH prices increased moderately during Q1'26 as rising propylene costs, elevated energy prices, and higher freight expenses lifted production costs. Supply chains were further affected by geopolitical tensions surrounding key shipping routes, increasing logistics costs for imported chemicals and feedstocks. Demand from epoxy resin manufacturers improved slightly, supported by maintenance coatings, industrial composites, and electrical applications, while construction activity remained relatively subdued. Buyers continued to procure cautiously, resulting in a market where higher production costs rather than stronger consumption remained the principal driver of price increases.
North America
North American ECH prices increased modestly during Q1'26 as firmer propylene values and higher logistics costs lifted production economics. Demand from epoxy resins, adhesives, and protective coatings improved gradually, supported by industrial maintenance and infrastructure-related consumption. However, cautious purchasing and adequate regional supply limited upward momentum, leaving the market primarily driven by feedstock costs and broader macroeconomic sentiment rather than strong demand growth.