Daily Review of Epichlorohydrin: Market Shrinking

[China Epoxy Network (China Epoxy Industry Online) www.
epoxy-e.
cn] October 24, 2008: The domestic epichlorohydrin market continues to be low, and the mainstream market on the trading day (October 23) The mainstream transaction price in East China was weak at RMB 10,500 per ton.
Market experts from China Epoxy Industry Association (www.
epoxy-e.
cn) indicated that the market’s operating atmosphere was even more “quiet” that day, and domestic manufacturers were listed on the market.
The postponement remains the same, and the quotation is basically unified at 11,000 yuan/ton.
The actual negotiation is lower than this level, resulting in a wide space.
Due to the weak downstream consumer demand and the widespread phenomenon of manufacturers' reductions and shutdowns, the market demand has further shrunk.
At present, the external disk liquid resin It has also fallen sharply, reaching US$120-150/ton (CFR China’s main port).
The downstream construction and automotive industry demand is sluggish, and the export process has been suppressed.
Some regional markets for raw material propylene have changed slightly, and Shandong has been affected by a small increase in downstream polypropylene.
Due to the downward trend in the overall petrochemical environment, the market lacks optimistic expectations for this contrarian market.
Currently, the production of epichlorohydrin is increasing, but the effect of short-term price insuring and stabilizing the market is not obvious.
The downstream is looking forward to the release of the settlement price at the end of the month.
Seek a clear direction; the external disk market was impacted by the weak downstream demand, the sharp decline in upstream raw materials, and the continuous decline in China’s spot stocks.
It fell again by 30-60 US dollars/ton, and the barrel price part fell below 1,900 US dollars/ton (CFR China Main Port) In addition to the inherent market downturn, there are also real concerns about the spread of the financial crisis.
For example, the frenzied demand of the previous year has ceased, and following the market decline may be a new choice that must be faced.

    On the last trading day (October 23), the domestic epichlorohydrin market is still facing challenges, as other products are under pressure to cut prices.
In particular, related products, bisphenol A and downstream products, epoxy resins, are in the process of downward adjustment as a whole.
Tired to deal with, more choices to leave the market and wait and see.
The difficulty of market volume is increasing, actual negotiations are limited, the market outlook continues to be bearish, demand is shrinking severely, supply circulation is stagnant, manufacturers maintain contract volume mainly, other shipments are slow, downstream industries purchase conservatively and lack replenishment; manufacturers generally Postponement, acceptance, and delivery, the overall start of construction has dropped significantly.
Among them, Bohui Chemical has shut down completely, Qilu Petrochemical maintains 80%, Xinyue Chemical is only half, Yangnong Chemical maintains 60%, basically self-use, Anbang Electrochemical, Sandie Chemical The same parking; due to the sharp decline in consumption power, manufacturers are forced to reduce the burden and have few results.
Social inventories are still stuck, users still have high-priced raw materials in the early stage, market fundamentals have not yet stabilized, and this wave of adjustment has little effect; external market sentiment There is a serious shortage.
Due to the high domestic downward pressure and serious internal and external disk upside-down, downstream export-oriented manufacturers have reduced orders and weakened import interest.
According to market experts from the China Epoxy Industry Association (www.
epoxy-e.
cn), the mainstream quotation in East China is 10,500-11,000 yuan/ton, the mainstream transaction price is 10,500 yuan/ton; the mainstream quotation in Huangshan region is 10,500-11,000 yuan.
/Ton, the mainstream transaction price is 10,500 yuan/ton; the mainstream quotation in North China is 10,500 to 11,000 yuan/ton, and the mainstream transaction price is 10,500 yuan/ton; the mainstream quotation in South China is 11,000 to 11,500 yuan/ton, and the mainstream transaction price is 11,000 yuan/ton.

    Domestic manufacturers’ quotations have once again widened the gap and are completely flat with the market, ranging from 10,500 to 11,000 yuan per ton.
Most of them adopt deferred settlement methods, and "acceptable, including freight", but it is still difficult to stimulate "buying".
The current supply and demand relationship has limited improvement.
, Weak demand is still a weakness.
According to market experts from China Epoxy Industry Association (www.
epoxy-e.
cn): Bohui Chemical’s ex-factory price is 11,000 yuan/ton (including freight), one set of 80,000 tons/year is operating at low load, and the other two sets of 8 +80,000 tons/year plant shutdown; Yangnong Chemical’s closure, the initial ex-factory price of 13,000 yuan/ton (including freight), mainly for self-use, few shipments, 3+30,000 tons/year device open, 1 stop, 1 (low Load operation); Xinyue Chemical’s ex-factory price is 11,000 yuan/ton (including freight), and 3+30,000 tons/year equipment has a lower operating load; Qilu Petrochemical’s ex-factory price is 11,000 yuan/ton (including freight), and 32,000 tons/year of equipment The operating load is average; Tianjin Chemical Factory is closed, the pre-factory price is 12,500 yuan/ton (including freight), 28,000 tons/year, 33,000 tons/year will be shut down on September 15th, and the line will be rebuilt, and the time will be January , Has not yet restarted; Baling Petrochemical closed the disk, the initial ex-factory price was 12,500 yuan/ton (including freight), and the 32,000 tons/year plant was operating normally, mainly for self-use, and the export was insufficient; Anbang Electrochemical closed the disc, the preliminary ex-factory price was 13,000 Yuan/ton (including freight), the 20,000-ton/year plant will be shut down for maintenance on September 15th, the planned time is half a month, there is no restart at present, and no inventory is sold; Sandie Chemical lacks quotation, and the 25,000-ton/year plant is shut down.
Supply to related companies; Zhonghai Fine Chemical's 40,000-ton/year plant is about to be completed, and it is scheduled to be commissioned in October.

(Our reporter Xi Shu)

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