The Chinese market for Epichlorohydrin (ECH) has witnessed a significant price surge during November 2024. The market rebounded during November 2024 followed by a downtrend amid several players have adopted a cautious stance, with subdued trading and waning interest in new deals.

The Epichlorohydrin prices in China have significantly rebounded to settle at USD 1108/ MT ECH FOB Ningbo with a hike of 2.1% during November 2024 on the back of supply chain disruptions and the imposition of anti-dumping duties. November 2024 witnessed several Epichlorohydrin maintenance disruptions in China. This includes Chang Chun Chemical in Panjin, Liaoning having a capacity of 6667 MT/yr; Qingdao Haiwan Chemical in Shandong having a capacity of 150000 MT/yr; Jiangsu Haixing Chemical in Dafeng having a capacity of 10833 MT/yr; and Shandong Befar Group Ruicheng in Shandong having a capacity of 6250 MT/yr. This series of maintenance shutdowns have created a tight flow market which resulted in a shortage of goods during this period. Moreover, the November typhoon in China has exacerbated the already tight supply situation in the Epichlorohydrin market. The typhoon-induced disruptions to the supply chain have hindered the smooth flow of ECH, limiting the availability of spot goods and further pushing prices upward. Additionally, the significant surge in freight charges from Asia has added to the cost pressures on Epichlorohydrin producers and importers.

Additionally, the recent imposition of anti-dumping duties on ECH imports from China, South Korea, and Thailand by the Indian government has had a profound impact on the global Epichlorohydrin market. The additional costs associated with the anti-dumping duties have been passed on to importers, leading to higher FOB prices for Epichlorohydrin from China. This has further fueled the price increase and made ECH a more expensive commodity for Indian consumers.

A resurgence of the downstream demand has played a significant role in increasing new orders for Epichlorohydrin. As construction activities gain momentum, the demand for Epichlorohydrin, a crucial ingredient in various construction materials like paints, coatings, and adhesives, has surged. While a decline in feedstock propylene prices has partially offset the upward trend. However, the impact of lower propylene costs has been insufficient to counteract the strong demand and supply constraints.

As per ChemAnalyst, the Epichlorohydrin prices in China are expected to remain uncertain in the upcoming weeks. While the imposition of anti-dumping duties from India could lead the Chinese manufacturers to further surge the price trend, the seasonal destocking activities could decline the prices in December 2024.