Epichlorohydrin Prices, markets & analysis
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Asia consumes more than half of the global supply of epichlorohydrin (ECH), with China responsible for consuming around 30% of that figure. In mid-August 2012, several new plant start-ups in China worsened a prevailing ECH oversupply problem. The start-ups have reduced the reliance of China on imports from regional producers.
China’s plant operating rates play a pivotal role in the region’s supply-and-demand balance. The country’s average operating rate has decreased further from around 70% capacity in mid-August 2012 to 50% capacity, as the market continues to be oversupplied.
There was no improvement in demand from the downstream epoxy resins sector in the quarter ended mid-November and ECH prices hence fell further from the previous quarter, from $1,730-1,760/tonne CFR (cost & freight) China on 14 August to $1,550-1,600/tonne CFR China on 13 November, as a result of oversupply.
Many regional producers lowered their selling ideas to around $1,600/tonne CFR China to boost buying interest in the market, but buying ideas were largely capped around $1,550/tonne CFR China.
Updated to mid-November 2012
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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
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