In November, the domestic epoxy propane market first rose and then fell. According to the monitoring system of Shengyi Society, as of November 28th, the benchmark price of Shengyi Society’s epoxy propane was 7933.33 yuan/ton, an increase of 3.03% compared to November 1st.

Price influencing factors:
Raw material side: In November, the market price of raw material propylene first rose and then fell, while the price of liquid chlorine fluctuated slightly. The rise in raw material prices in the first half of the month provided strong support for epoxy propane, and prices continued to rise. As the end of the month approached, companies attempted to reduce profits by shipping at low prices, resulting in a downward trend in epoxy propane market prices. According to the monitoring system of Shengyi Society, as of November 28th, the benchmark price of propylene in Shengyi Society was 6193.25 yuan/ton, an increase of 2.23% compared to the beginning of this month (6058.25 yuan/ton).
Supply side: In the first half of the month, Wanhua and Xinyue reduced their epoxy propane load, and Wanhua imported epoxy propane, further increasing the tight supply situation in the market. The tight supply situation has led to an increase in the price of epichlorohydrin. In the second half of the month, due to the completion of refinery maintenance, the load of Shandong Jinling and other units increased, easing the tight supply of epoxy propane in China.
On the demand side: In the first half of the month, there was a concentration of newly added and restarted downstream facilities, coupled with some downstream enterprises’ centralized procurement and follow-up, resulting in a slightly tight market inventory and an upward trend in the price of epoxy propane. However, in the second half of the month, the number of new orders for polyether polyols decreased, export orders were not supported enough, the market trading atmosphere was cold, and on-demand procurement was the main trend, resulting in a decline in the market price of epoxy propane.
Market forecast:
An epoxy propane analyst from Shengyi Society believes that currently, the market price of propylene on the raw material side has declined, providing weak support for epoxy propane. The downstream new order volume is insufficient, and the demand for epoxy propane has weakened, mainly due to rigid demand procurement. In addition, the tight supply situation in the market has eased, and enterprises have a strong willingness to sell at low prices in order to reduce profits. It is expected that the epoxy propane market will mainly operate weakly and steadily in the later stage, and more attention should be paid to changes in raw material prices and market supply and demand.