The Asia Pacific region emerged as the largest market for the epichlorohydrin market. This region dominated the global epichlorohydrin owing to the advancement of growing countries like Thailand and China, which are among the essential customers of epichlorohydrin.
In Q1 2024 epichlorohydrin market of Asia and Europe was stable with minor fluctuations along with a declining price trend due to less demand. The major reason for the decline in Europe was less demand for the downstream construction sector.
In Q2 2024, the Asian epichlorohydrin market experienced a decline in prices due to downstream demand and global supply was constrained by maintenance shutdowns in Asia and Europe, reducing the output. Similarly, the European market also declined due to decreased demand. Geopolitical tensions in the Asia and the war ongoing in Ukraine further tightened the market by disrupting glycerol supplies, a key feedstock for epichlorohydrin production.
In Q3 and 2024, the epichlorohydrin market continues to experience upward price pressure due to ongoing supply limitations and strong demand from the packaging and automotive sectors. The dynamics of the epichlorohydrin market are also determined by infrastructure development and construction. As of August 2024, epichlorohydrin prices are fluctuating and reflecting around 2.1% increase from the previous month.
In Q4 2024, prices are likely to rise initially due to strong demand at the beginning of the quarter and increasing needs in the utility market. However, as producers start destocking later in the quarter, a decline in prices may follow. This pattern is characteristic of how markets respond to changing inventory levels and demand fluctuations. Additionally, variations in feedstock costs and supply chain dynamics will impact production expenses and market prices, further influencing the overall pricing trends.