After the resumption of the market, the domestic epoxy resin industry chain center of gravity, liquid resin offers higher, solid resin market is narrow rise. During the week, the raw material market is running, in which the epichlorohydrin price has A large increase, while bisphenol A, another raw material, has A small increase, and the cost support has been enhanced. With the domestic epidemic prevention and control situation improving, superposition after the holiday downstream just need to follow up the increase, mainstream manufacturers offer to push the mentality emerged, market inquiry atmosphere slightly warmer.
As of May 7, the mainstream negotiation price of liquid resin market in East China is 26200-27000 YUAN/ton, which is 750 yuan/ton higher than the pre-holiday price. The mainstream negotiation price of solid resin market in Huangshan area is 22,500 to 23000 yuan/ton, which is 200 yuan/ton higher than the pre-holiday price. Epoxy major area price shock this week! $100 million less cash flow! Resin faucet gross margin, net interest rate are down! Main influencing factors of the market:
The raw material surface
Bisphenol A: The domestic bisphenol A market moved higher in A narrow range this week. During the week, raw material phenol market offer pushed up, bisphenol A market to follow the pace of the industrial chain, offer slightly increased. However, the downstream purchasing caution, the market push up degree is limited. In terms of installations, the industry’s operating rate remained near 80 percent this week. As of May 7, the mainstream negotiation price of BISphenol A in East China is 16,600-16,800 yuan/ton, which is about 100 yuan/ton higher than the pre-holiday price.
Epichlorohydrin: This week, the domestic epichlorohydrin market wide pull up. Raw material market adjustment is limited, in terms of supply and demand, the mainstream factory device load is low, the enthusiasm of the downstream inquiry is improved, and the mentality of manufacturers is strong. In terms of equipment, the current starting load of the industry is low, and the overall operating rate is around 55%. As of May 7, the mainstream negotiation price of BISphenol A in East China is 190,000-19200 yuan/ton, which is about 900 yuan/ton higher than the pre-holiday price.
The supply side
This week, the overall operating rate of liquid resin in East China increased to 60% to 70%. With the improvement of the epidemic situation and the improvement of downstream demand, the enthusiasm of the site has been improved. The overall starting load of solid resin units in Huangshan area remains around 50%, and the starting level remains unchanged.
Demand side
Future forecast at present
Overall, the intention to push up the epoxy resin market appears, although the downstream demand has improved, we still need to pay attention to the follow-up situation. It is expected that epoxy resin market is mainly high in the narrow range, the main influencing factors are as follows:
In terms of raw materials, the current cost support is strong, in which bisphenol A is mainly adjusted in A narrow range. Epichlorohydrin is more likely to stabilize in the future, and the cost fluctuation is closely related to the market situation. In terms of supply, the current construction level is not high, and the market supply is fair. On the demand side, the main downstream industries just need to follow up, affecting the pace of follow-up adjustment.
Downstream and terminal just need inquiry mainly, the purchase of epoxy resin cautious, supply and demand to be further improved.
Post time: May-23-2022
