Both Raw Materials Fell To The Cost Line, And The Epoxy Resin Market Bottomed Out

1. Market Status

2. Market Overview

  Bisphenol A:

  Price: The bisphenol A market fell sharply last week: as of November 4, the reference price of bisphenol A in East China was 12100 yuan/ton, down 1300 yuan from the previous week.

  Affected by supply, the phenol and ketone market fell sharply last week, driven by the continuous reduction of the ex factory quotation by petrochemical manufacturers, especially the price of phenol, which fell by 800-900 yuan/ton a week.

  The epoxy resin and PC industries at the downstream of bisphenol A continue to be depressed, the unit operation rate is not high, and the market participation is not high. The bisphenol A manufacturers mainly focus on delivery contracts, which has little effect on the spot market.

  The collapse of the cost side and the cold market have caused the price of bisphenol A to keep falling, and the price has also fallen to a low level near the theoretical cost line. Even if the production and maintenance of the bisphenol A major factory, Ningbo Nanya, were stopped, it did not bring any stimulus to the market. In the week, two auctions of Zhejiang Petrochemical ended in one round, and the auction price dropped by about 800 yuan/ton compared with the previous week.

  In terms of raw materials: the phenol and ketone market had a narrow shock last week: the latest reference price of acetone was 5400 yuan/ton, down 300 yuan from the previous week; The latest reference price of phenol was 9500 yuan/ton, down 800 yuan from the previous week.

  Device condition: Changchun Chemical and Hainan Huasheng Line 1 stop for maintenance; South Asia Plastics (Ningbo) 150000-ton unit was shut down on November 1, and maintenance is planned for one month. The overall operating rate of industrial devices dropped to about 60%.

Epichlorohydrin:

  In terms of price: the low level of epichlorohydrin market continued to fall last week: as of November 4, the reference price of epichlorohydrin in East China market was 8700 yuan/ton, down 500 yuan from the previous week.

  The market has a strong wait-and-see atmosphere, and the real order negotiation is not active enough. Under the pressure of inventory, the propylene process plant price reduction has driven the epichlorohydrin market to continue to decline, and the price has approached the propylene process cost line.

  The price of glycerin remains declining, but the price of propylene is relatively stable. The cost line of propylene based epichlorohydrin will become a strong support line in the market. Market people believe that there is still some room for the market to reach the bottom, and there is no action to copy the bottom at present. However, with the gradual narrowing of the price decline, the market is likely to rebound at any time in the near future under the stimulus of bottom shopping.

  In terms of raw materials: the prices of ECH main raw materials for the two process routes accelerated to fall during the week: the latest reference price of propylene was 7100 yuan/ton, down 100 yuan from the previous week; The latest reference price of 99.5% glycerine in East China was 4800 yuan/ton, down 300 yuan from the previous week.

  Unit condition: Glycerol process units such as Dongying Hebang, Hebei Zhuotai and Hebei Jiaao have not been restarted; Shandong Minji 100000 ton glycerine process plant, Dongying Liancheng 30000 ton plant and Ningbo Zhenyang 40000 ton plant were restarted; The overall operating rate of the industry is about 60%.

Epoxy Resin:

  Price: before the festival, the domestic epoxy resin market rose and fell back: as of November 4, the reference price of liquid epoxy resin in East China was 17,500 yuan/ton, 900 yuan lower than the previous week; The reference price of solid epoxy resin was 16600 yuan/ton, down 700 yuan from the previous week.

  The raw material phenol and ketone market fell sharply, and Zhejiang Petrochemical ended its two auctions in one round each week. Therefore, even if Ningbo South Asia stopped production for maintenance, the decrease of bisphenol A last week still reached more than 1000 yuan; The market of epichlorohydrin, another raw material, has not improved, and the price has fallen to the cost line of propylene process. The cost side fell sharply. Epoxy resin manufacturers lowered their offers one after another, and the price of the mainstream market fell by nearly 1000 yuan a week. The low price of liquid epoxy resin has dropped to the beginning of "16".

  In the morning of November 7, the decline of epichlorohydrin intensified again, and the East China market dropped about 500 yuan/ton, with a reference price of 8200 yuan/ton; The decline of bisphenol A narrowed, with the reference price of 12000 yuan/ton in East China. As a result, both liquid and solid epoxy resin dropped by 200-300 yuan/ton.

  In terms of equipment: the overall operating rate of liquid resin is about 60%; The overall operating rate of solid resin is about 40%.