In December 2025, the domestic epoxy propane market showed a trend of “fluctuating upward, then rebounding after a pullback”. According to the monitoring system, as of December 31st, the benchmark price of epichlorohydrin was 7733.33 yuan/ton, a decrease of 0.22% compared to December 1st. The core contradiction in the market is concentrated in the supply game between the release of new production capacity and the elimination of old equipment, coupled with the dual constraints of fluctuating raw material propylene prices and weak downstream demand, resulting in a phased pattern of prices.

In early December, the epoxy propane market showed a steady upward trend, with prices gradually rising from 7750 yuan/ton at the beginning of the month to 8166.67 yuan/ton, with a cumulative increase of 5.38%.
Raw material side: At the beginning of the month, the price of propylene remained at a high level of 6180.75 yuan/ton, forming a basic support for the cost side. According to the monitoring system, as of December 12th, the benchmark price of propylene was 6220.75 yuan/ton, an increase of 0.65% compared to the beginning of this month (6180.75 yuan/ton).
Due to the accelerated destocking of some small and medium-sized enterprises, the supply of goods in the market has tightened temporarily.
Downstream polyether factories have started replenishing inventory and actively purchasing, resulting in an increase of approximately 15% in order volume compared to the end of November. Wanhua Chemical has simultaneously increased its external procurement efforts to further alleviate supply pressure. Mainstream factories have raised their ex factory prices by 100-150 yuan/ton, and the market transaction center continues to shift upward.
Entering mid December, the release of production capacity in the epoxy propane market encountered weak demand, resulting in a downward pressure on prices. As of December 24th, the price gradually fell from 8166.67 yuan/ton (December 12th) to 7850 yuan/ton, with a cumulative increase or decrease of 3.88%.
On the raw material side, the price of propylene has been continuously declining. As of December 31st, the benchmark price of propylene in Shengyi Society was 5711.00 yuan/ton, a decrease of 7.6% compared to the beginning of this month (6180.75 yuan/ton). Weakened cost support.
On the supply side, the 300000 tons/year PO plant of Lianhong was put into operation ahead of schedule on December 10th. Coupled with the release of other new production capacity in Shandong, the tight supply situation in the market has significantly eased, and the enterprise inventory has rebounded to 46000 tons.
Demand side: The downstream PP powder production rate has dropped to a low of 37%, and polyether enterprises have reduced their procurement volume by 30% due to light orders for terminal building materials and home furnishings, only maintaining small orders for essential needs. The factories in the north and south are selling at low prices to reduce inventory, further suppressing market sentiment.
In late December, the epoxy propane market showed a “fluctuating rebound under the game of supply and demand”, with prices rising from 7850 yuan/ton to 8050 yuan/ton, an increase of 2.55%.
Raw material side: The price of propylene continues to decline, with weak cost support.
Supply side: On December 22nd, the joint PO device officially produced qualified products, with a theoretical increase in daily supply of 800 tons, which initially triggered bearish sentiment in the market. However, during the same period, a large factory in the north temporarily shut down due to environmental protection rectification, affecting its daily production capacity of 500 tons and causing supply side disturbances, forming a hedge. The northern factory took the opportunity to raise the factory price by 200 yuan/ton, which led to a rebound in spot prices.
Demand side: Downstream enterprises have limited acceptance of high priced raw materials, with a new order transaction rate of less than 40% and a strong resistance mentality. After the price rises, it quickly enters a stalemate state, and the trend at the end of the month is weak.
Market forecast:
An epoxy propane analyst from Shengyi Society believes that currently, the price trend of propylene in the raw material market is weak, which provides weak support for epoxy propane and limits the driving force for enterprises to raise prices; The release of new production capacity on the supply side is parallel to the elimination of old equipment, leading to an increase in industry concentration but short-term supply easing. Downstream industries are generally facing profit inversion, with rigid demand procurement being the main focus, making it difficult to form sustained upward momentum; It is expected that the epoxy propane market will continue to operate steadily with a moderate to strong trend in the later stage, and more attention should be paid to changes in raw material prices and market supply and demand.