[Chemical Knowledge]：What are the factors affecting the price of epichlorohydrin? Detailed analysis, epichlorohydrin price chart business agency

Epichlorohydrin Market Background

Epichlorohydrin (ECH) is an important organic chemical raw material, which is widely used in the production of epoxy resin, medicine, pesticide, plasticizer and so on. The fluctuation of ECH market price has an important impact on the downstream industry chain, so it is of great significance to understand the price influencing factors for the relevant enterprises to make decisions.

Raw material cost

The main raw materials of epichlorohydrin include propylene, chlorine and hydrogen peroxide. The price fluctuation of these raw materials directly affects the production cost of ECH. As a petroleum derivative, the price of propylene is greatly affected by the international crude oil price. Chlorine is obtained by electrolysis of salt water, and the cost of electricity and the price of salt are the main cost factors. The production of hydrogen peroxide involves complex chemical reactions, and its price is also affected by many factors, including production processes and environmental requirements.

Production process and technical progress

The choice of production process and technological progress will also significantly affect the production cost of epichlorohydrin. At present, the production process of ECH mainly includes propylene chlorination method and glycerin method. The technology of propylene chlorination is mature, but the environmental pressure is high; the glycerin method is regarded as a more environmentally friendly and economical process, especially when the raw material glycerin is sufficient and the price is low. The promotion of the glycerol process is also limited by technical bottlenecks and investment in equipment. Technological advances and research and development of new processes can reduce production costs and increase production efficiency, thereby having a positive impact on market prices.

supply and demand relationship

The supply and demand relationship of the epichlorohydrin market is one of the core factors affecting the price. On the supply side, the capacity expansion of production enterprises, the commissioning of new projects, and the start-up and shutdown of the plant will affect the market supply. For example, outages due to overhauls or force majeure of certain production units can lead to tight supply in the market, thereby driving up prices. On the demand side, the development of downstream industries and changes in market demand are key. As the main downstream product of ECH, the demand of epoxy resin directly affects the market demand of ECH. If the downstream industry is booming and demand is strong, ECH prices are likely to move higher; conversely, if downstream demand is weak, prices are likely to move lower.

Environmental policies and regulations

With the enhancement of environmental awareness and the increasingly stringent regulations, the chemical industry is facing increasing environmental pressure. The government's strict supervision and punishment measures for wastewater and exhaust emissions force manufacturers to increase environmental protection investment, and this part of the cost will eventually be reflected in the product price. For example, in recent years, China has strengthened the control of VOCs (volatile organic compounds) emissions, resulting in chemical enterprises need to increase investment in environmental protection facilities and process transformation, thus pushing up the production cost and market price of epichlorohydrin.

International Market and Trade Policy

Epichlorohydrin is a global trade chemical product, and its international market dynamics and trade policies will also have an important impact on prices. In the international market, the supply and demand situation of major producing countries, export policies, and price competition in the international market will affect the domestic market price. In terms of trade policy, tariffs, anti-dumping measures and trade barriers will directly affect import costs and market supply. For example, the anti-dumping investigations and sanctions imposed by the United States on Chinese chemical products will lead to an increase in the import cost of related products, which in turn will push up prices in the domestic market.

Energy prices

Energy prices, especially oil and gas prices, have a direct impact on the cost of epichlorohydrin production. As a by-product of petroleum refining, the price of propylene is significantly affected by fluctuations in the crude oil market. The cost of energy consumption in the production process (e. g. electricity, steam) is also a non-negligible part. Rising energy prices raise production costs and vice versa. Therefore, changes in the global energy market have an important transmission effect on ECH prices.

Market Competition and Enterprise Strategy

Market competition and the strategies of major producers will also have an impact on the price of epichlorohydrin. The capacity layout, market share, price strategy and production and sales balance of major manufacturers in the market are all important factors affecting prices. Price wars between companies, joint production restrictions, and market monopolies can all lead to price fluctuations. The pricing strategy and the choice of sales channels will also have an important impact on the market price.

Summary

The price of epichlorohydrin is affected by a variety of factors, including raw material costs, production processes and technological advances, supply and demand, environmental policies and regulations, international market and trade policies, energy prices, and market competition and corporate strategies. These factors interact and together determine the trend of market prices. For relevant enterprises, a comprehensive understanding and analysis of these influencing factors will help to formulate scientific and reasonable business strategies, reduce costs and improve market competitiveness.