In October, the domestic epoxy propane market first rose and then consolidated. According to the monitoring system of Shengyi Society, as of October 31st, the benchmark price of Shengyi Society’s epoxy propane was 7700 yuan/ton, a decrease of -0.86% compared to October 1st.

Price influencing factors:
On the raw material side: In October, the market price of propylene raw material declined slightly, but the significant rebound in liquid chlorine prices increased the cost of the chlorohydrin process, putting greater pressure on production enterprises to incur losses and weakening their willingness to supply at low prices, resulting in an increase in the market price of epoxy propane in the first half of the month. According to the monitoring system of Shengyi Society, as of October 31st, the benchmark price of propylene in Shengyi Society was 6095.75 yuan/ton, a decrease of 6.84% compared to the beginning of this month (6543.25 yuan/ton).
Supply side: In the first half of the month, major factories such as Lihua Yi underwent equipment maintenance, resulting in a decrease in spot circulation and a reduction in market supply, leading to a significant increase in the market price of epoxy propane. In the second half of the month, due to the reduction of refinery maintenance and the gradual resumption of production by previous maintenance companies, the domestic supply of epichlorohydrin has increased. The market price of epichlorohydrin has declined in the second half of the month.
Demand side: The downstream demand side showed weak performance in October, and polyether enterprises held onto rigid demand procurement in multiple dimensions, with a strong wait-and-see sentiment. The demand side has limited support for the epoxy propane market. The demand follow-up in the first half of the month was relatively concentrated, but the order volume decreased in the second half, and the trading atmosphere was relatively cold. Overall, the demand side’s support for epoxy propane has weakened, and it is expected that the epoxy propane market will consolidate and operate in the later stage.
Market forecast:
An epoxy propane analyst from Shengyi Society believes that the market price of propylene on the raw material side has declined, providing weak support for epoxy propane. Downstream demand is weak, and rigid demand is the main focus, with a strong wait-and-see attitude. In addition, the restart of the Lihua Yi plant has increased market supply, and it is expected that the epoxy propane market will mainly consolidate and operate in the later stage. More attention should be paid to changes in raw material prices and market supply and demand.