Price trend
According to the data from SunSirs’bulk list, as of March 16, the average price of ECH companies’quotations was 11,966.67 RMB/ton, a 2.28% increase compared with the price of last Monday (March 8), an increase of 9.79% compared to February 16, and an increase of 0.28% in a three-month cycle.
Analysis review
Recently, the intention of low-price shipments in the ECH market was not strong, and the offer was stable and slightly higher. Recently, the raw material propylene was trending upwards and the cost pressure was relatively high. Holders increased their offers, and low-price shipments in the market decreased. However, downstream follow-ups were insufficient. The market was dominated by small orders that were just in demand, and the supply and demand were gamed, and the market was finishing up.
Upstream propylene, on March 16, the market price of propylene in Shandong was generally stable. According to the monitoring data of SunSirs, due to the influence of upstream and downstream, the price of propylene rose repeatedly in the second half of February and was at a multi-year high level. Propylene prices remained stable at the end of February and early March. Prices began to decline on the 4th. The prices generally rebounded on the 8th and the prices rose by 150-250 RMB/ton in two days. After that, the price generally stabilized. On the 12th, the price rose again by about 50 RMB/ton, and on the 15th, the price continued to rise by 50 RMB/ton. Prices were stable on the 16th, with market transactions ranging from 8,500 to 8,650 RMB/ton, and the mainstream price was around 8,550 RMB/ton.
For downstream epoxy resins, liquid epoxy resin negotiations in East China were carried out at a high level on March 16, and the mainstream negotiation offers were still maintained at 31,500-32,000 RMB/ton, and factories mainly delivered orders.
Market outlook
The ECH analysts of SunSirs believe that the recent high price of raw materials, the downstream just needs to take orders, the buying enthusiasm is general, the market continues to game. However, under the strong support of the cost side, it is expected that the ECH market may stagnate upward in the short term, and more attention needs to be paid to market news guidance.
