Epichlorohydrin Prices Soar to Yearly High in Asia Amid Supply Crunch and Firm Downstream Demand

The supply of Epichlorohydrin Prices in Asia has been tight since the suspected suspension of Jiangsu Haixing due to carbon emissions on the back of ongoing environmental protection inspections in China. This has led to a sharp drop in market supply in Asia as China manufactures almost 30% of world’s Epichlorohydrin.

The demand from the downstream epoxy resin has been firm in Asia which has led to a price rise of almost 60% in mid-September from the start of the year with the prices at around $3086 per tonne in China. The demand from India has also been high owing to the reviving construction sector which is also further exacerbated the prices.

The ongoing environmental inspections in the five provinces of China including Jilin, Shandong, Hubei, Guangdong, Sichuan have resulted in companies lowering their operating rates and shutting down operations. Several independent refineries in Shandong have reduced their operating rates by as much as 40%. Two of the refineries having combined capacity of 4.2 million tonnes per year have shut down production as major petrochemicals come under high-polluting industries.

Epichlorohydrin Pricing is majorly used to manufacture epoxy resins which have application in paints, electrical & electronics, construction, wind turbine, composites, adhesives, and others. The global demand for Epichlorohydrin stood at around 2 million tonnes in 2020 and the demand is expected to grow at a healthy CAGR of around 5% in the upcoming years.

As per ChemAnalyst, “the prices of Epichlorohydrin which have soared to yearly high of $3086 which is almost 60% more than the prices at the year start are expected to further rise the upcoming month as more and more companies come under the constraints of the ongoing environmental protection inspections in China. The prices are expected to take a stabilizing trend when the inspections in over and the supply returns to normal. The demand is expected to remain firm this quarter on the back of the upcoming construction projects in China and India.”

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