Epichlorohydrin Methodology

ECH is a colourless liquid with an irritating chloroform-like odour. Both chlorine and propylene are used to make ECH, which is used as a chemical intermediate together with bis-phenol A (BPA) in the manufacture of epoxy resins. These are polymers used in the manufacture of adhesives, coatings and structural parts needed by automotive, aerospace and aircraft industries. It is also used in adhesives for the construction industry, and in the electronics industry to encapsulate electronic components and protect them from damage. ECH is used to make durable coatings for storage tanks, pipes, appliances and food and drink cans.

ICIS pricing quotes epichlorohydrin (ECH) in Europe and Asia-Pacific.

Frequency:

All reports are published weekly on Tuesdays

Epichlorohydrin (EUROPE)

Weekly Price Assessments:

Epichlorohydrin Contract Price

• FD NWE (BULK) monthly (EUR/MT & conversion to US CTS/LB)

Epichlorohydrin (ASIA-PACIFIC)

Weekly Price Assessments:

Epichlorohydrin Spot Prices

• CFR CHINA MAIN PORT (ISO-TANK) (USD/MT & conversion to US CTS/LB)
• DEL EAST CHINA (BULK) (CNY/MT & conversion to US CTS/LB)

General Information:

Assessment window:

Price assessments are based on information supplied by market participants through the week up to close of business on Tuesday at 1700 hours in London and Singapore.

Specifications:

Bulk lots sold in Europe on a contractual basis CAS number 106-89-B. Drummed and iso-tank lots in Asia.

Timing:

Cargoes loading or delivered four-six weeks forward from the date of publication.

Terms:

Typically 30 days after bill of lading. In Asia, 30-90 days after bill of lading date.

Standard cargo size:

Contract lots vary depending on the size of the customer. The quotes refer to medium-sized customers buying around 1,000 tonnes per year. In Asia, one drum is equivalent to 230-240 kg. A container can usually hold up to 80 drums.

Assessment basis:

Contract prices refer to the period of the contract. Most contract prices change once per month. In Europe, the majority of business is contract and all prices are for bulk product, delivered to the customer’s plant. Spot business is reported in the text and can influence contract price discussions, but volumes are very limited. Most spot material is Russian. When Russian material moves mainly to China, Europe is generally tighter. When most Russian product flows to Europe, there tends to be some easing of availability in this area.

In Asia, the epichlorohydrin report has three price assessments covering drummed, iso-tank and bulk material into China and the China domestic market. Anti-dumping taxes ranging from 0-71.5% are levied by the Chinese authorities on ECH import cargoes from Japan, Korea, the United States and Russia. Due to the wide tax bracket, the price quote does not include deals for product with anti-dumping tax of more than five percent. This excludes Russian ECH material but fixtures and buy-sell price ideas will be mentioned in the text. The report will also mention transactions for bulk cargoes into China. Information on ECH trades in other parts of Asia such as northeast Asia or southeast Asia will also be included in the Asia Pacific report if heard in the market.

The epichlorohydrin reports offer market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence.

19 November 2012