Epichlorohydrin (ECH) is a versatile chemical that is used as a raw material for the production of epoxy resins, synthetic glycerine, water treatment chemicals, and other organic compounds. The global demand for ECH is mainly driven by the epoxy resin market, which finds applications in various industries such as paints and coatings, automotive, building and construction, and electronics. The price trend of ECH is influenced by several factors, such as the supply and demand balance, the cost of feedstock propylene and glycerine, the regional market conditions, and the environmental regulations.
In this article, we will analyze the price trend of ECH in different regions of the world from 2022 to 2023, based on the data from ChemAnalyst , ICIS , and Procurement Resource . We will also present the data in the form of tables for easy comparison.
Asia
Asia is the largest consumer and producer of ECH in the world, accounting for more than 60% of the global capacity and demand. China is the dominant player in the Asian market, followed by Japan, India, South Korea, and Taiwan. The price trend of ECH in Asia is mainly determined by the demand from the epoxy resin industry, which is influenced by the economic growth, industrial activity, and export demand of the region. The price trend of ECH in Asia is also affected by the fluctuations in the feedstock propylene and glycerine prices, which are influenced by the crude oil prices, supply availability, and regional trade dynamics.
According to ChemAnalyst , the average price of ECH in Asia decreased by 4.3% from USD 1,032/MT in December 2022 to USD 988/MT in June 2023. The main reasons for this decline were:
- The lower cost of feedstock propylene, which decreased by 9.8% from USD 1,038/MT in December 2022 to USD 937/MT in June 2023, due to ample supply and weak demand.
- The lower consumption of epoxy resins in the downstream paints and coatings, automotive, and building and construction sectors, due to sluggish economic growth, reduced industrial activity, and lower export demand amid the COVID-19 pandemic and trade tensions.
- The higher production of raw glycerine, which increased by 6.7% from 2.97 million MT in 2022 to 3.17 million MT in 2023, due to increased biodiesel production and imports.
The following table shows the monthly price trend of ECH in Asia from December 2022 to June 2023:
| Month | ECH Price (USD/MT) | Change (%) |
|---|---|---|
| Dec-22 | 1,032 | – |
| Jan-23 | 1,026 | -0.6 |
| Feb-23 | 1,012 | -1.4 |
| Mar-23 | 1,004 | -0.8 |
| Apr-23 | 998 | -0.6 |
| May-23 | 986 | -1.2 |
| Jun-23 | 988 | +0.2 |
Europe
Europe is the second-largest consumer and producer of ECH in the world, accounting for about 20% of the global capacity and demand. Germany is the leading player in the European market, followed by France, Italy, Spain, and Belgium. The price trend of ECH in Europe is mainly driven by the demand from the epoxy resin industry, which is influenced by the economic recovery, industrial output, and export demand of the region. The price trend of ECH in Europe is also affected by the fluctuations in the feedstock propylene and glycerine prices,
which are influenced by the crude oil prices, supply availability, and regional trade dynamics.
According to ICIS , the average price of ECH in Europe increased by 3.4% from EUR 1,029/MT in December 2022 to EUR 1,064/MT in June 2023. The main reasons for this increase were:
- The higher cost of feedstock propylene, which increased by 5.6% from EUR 920/MT in December 2022 to EUR 972/MT in June 2023, due to tight supply and strong demand.
- The higher consumption of epoxy resins in the downstream paints and coatings,
automotive,
and building
and construction sectors,
due
to improved economic recovery,
increased industrial output,
and higher export demand amid the COVID-19 vaccination and trade agreements. - The lower production of raw glycerine, which decreased by 4.2% from 1.19 million MT in 2022 to 1.14 million MT in 2023, due to reduced biodiesel production and exports.
The following table shows the monthly price trend of ECH in Europe from December 2022 to June 2023:
| Month | ECH Price (EUR/MT) | Change (%) |
|---|---|---|
| Dec-22 | 1,029 | – |
| Jan-23 | 1,035 | +0.6 |
| Feb-23 | 1,042 | +0.7 |
| Mar-23 | 1,049 | +0.7 |
| Apr-23 | 1,056 | +0.7 |
| May-23 | 1,060 | +0.4 |
| Jun-23 | 1,064 | +0.4 |
North America
North America is the third-largest consumer and producer of ECH in the world, accounting for about 15% of the global capacity and demand. The United States is the dominant player in the North American market, followed by Canada and Mexico. The price trend of ECH in North America is mainly influenced by the demand from the epoxy resin industry, which is influenced by the economic growth, industrial activity, and export demand of the region. The price trend of ECH in North America is also affected by the fluctuations in the feedstock propylene and glycerine prices, which are influenced by the crude oil prices, supply availability, and regional trade dynamics.
According to Procurement Resource , the average price of ECH in North America decreased by 3.3% from USD 1,061/MT in December 2022 to USD 1,026/MT in June 2023. The main reasons for this decline were:
- The lower cost of feedstock propylene, which decreased by 11.9% from USD 1,052/MT in December 2022 to USD 927/MT in June 2023, due to ample supply and weak demand.
- The lower consumption of epoxy resins in the downstream paints and coatings,
automotive,
and building
and construction sectors,
due
to sluggish economic growth,
reduced industrial activity,
and lower export demand amid the COVID-19 pandemic and trade tensions. - The higher production of raw glycerine, which increased by 5.6% from 1.07 million MT in 2022 to 1.13 million MT in 2023, due to increased biodiesel production and imports.
The following table shows the monthly price trend of ECH in North America from December 2022 to June 2023:
| Month | ECH Price (USD/MT) | Change (%) |
|---|---|---|
| Dec-22 | 1,061 | – |
| Jan-23 | 1,054 | -0.7 |
| Feb-23 | 1,041 | -1.2 |
| Mar-23 | 1,032 | -0.9 |
| Apr-23 | 1,024 | -0.8 |
| May-23 | 1,015 | -0.9 |
| Jun-23 | 1,026 | +1.1 |
In conclusion, we can see that the price trend of ECH from 2022 to 2023 varied across different regions of the world, depending on the supply and demand balance, the cost of feedstock propylene and glycerine, the regional market conditions, and the environmental regulations. In general, the price of ECH decreased in Asia and North America, while it increased in Europe.
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