Preface: In the first half of 2026, the domestic epichlorohydrin market fully exhibited a trend of first surging, then fluctuating and finally declining. The interplay between costs and supply-demand fundamentals remained the primary factor influencing price movements. During the first half of the year, the price of epichlorohydrin in Jiangsu fluctuated within a range of 10,250–14,300 RMB/ton, yielding an amplitude of 34.54%. The annual high occurred at 14,300 RMB/ton in late March, while the low occurred at 10,250 RMB/ton in mid-June. The average price for the first half of 2026 was 12,474 RMB/ton, an increase of 891 RMB/ton or 7.62% compared to the average of 11,583 RMB/ton in the second half of 2025.

Table: Spot Price Changes of Epichlorohydrin in Jiangsu in 2026 (Unit: RMB/ton)

| Price | 2025 H2 Average | 2026 H1 Average | Change (RMB/ton) | Change (%) | 2026 Low | 2026 High | Amplitude |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Jiangsu Spot | 11583 | 12474 | 891 | 7.62 ↑ | 10250 | 14300 | 34.54% ↑ |

Source: chempricehub

In the first half of 2026, the epichlorohydrin market experienced significant volatility driven by a combination of factors including supply-demand dynamics and cost changes. The market trajectory can be divided into three main phases:

Phase 1 (January–February): Domestic epichlorohydrin first rose and then underwent volatile consolidation. In January, continuous glycerol price increases put pressure on the glycerol-based production route, coupled with tight spot supply and pre-Chinese New Year stockpiling, pushing prices up to 12,500 RMB/ton. In February, high prices dampened downstream procurement; trading was thin, and producers offered discounts to move inventory. By mid-February, the Jiangsu delivered price (with acceptance) fell to 12,250 RMB/ton. As logistics tightened before the holiday, the market gradually wound down. After the holiday, glycerol remained at high levels; producers focused on delivering pre-holiday orders, keeping spot supply tight and prompting upward price adjustments. However, downstream restarted slowly and resisted high-priced goods, resulting in few actual transactions and a slower-than-expected market recovery.

Phase 2 (March–April): Domestic epichlorohydrin surged sharply, then fluctuated at high levels before retreating. In early March, geopolitical conflicts in the Middle East disrupted crude oil prices, propylene and glycerol rose together, and downstream epoxy resin markets strengthened. Multiple positive factors drove a substantial price rally. On March 9, the Jiangsu delivered price (with acceptance) surged 700 RMB/ton in a single day to 14,200 RMB/ton, a multi-year high. In mid-to-late March, high prices suppressed downstream purchases; end-users mostly consumed inventories and long-term contracts, with limited spot demand, causing a moderate price pullback. In April, raw material costs remained high; producers insisted on holding prices despite losses, but downstream buying was sluggish, leading to a continuous decline. Prices dropped to 12,825 RMB/ton on April 13. Pre-May Day stockpiling triggered a short-term rebound, with quotes recovering to 13,550 RMB/ton on April 20. However, end-users replenished cautiously and new orders were scarce, causing the market to weaken again. As of April 28, the average price in the Jiangsu market for April was 13,304 RMB/ton, down 162 RMB/ton or 1.2% month-on-month.

Phase 3 (May–June): Domestic epichlorohydrin trended weakly downward overall. Before the May Day holiday, weak cost support and tepid demand fueled bearish sentiment, and market prices gradually declined. Trading stalled during the holiday. After the holiday, the core raw material glycerol continued to weaken, accelerating the decline in mid-May. A combination of supply-demand imbalances and pessimistic expectations exerted pressure, forcing producers to cut prices to clear inventory. On May 18, the Jiangsu market fell 400 RMB/ton in a single day, a drop of 3.14%. Downstream adopted a "buy on rising, not on falling" mentality; even with lower prices, they only purchased for immediate needs. The downtrend persisted into June, with ample supply, weak costs, and tepid demand leaving producers without support to hold prices; the market continued to slide. As of June 17, the average price in the Jiangsu market was 10,335 RMB/ton, down 16.57% month-on-month.

In the second half of 2026, the Chinese epichlorohydrin market is expected to see a potential uptick in demand. In many chemical industries, there is a traditional consumption peak season known as "Golden September and Silver October." Since epoxy resin is a key downstream product of epichlorohydrin, changes in its demand significantly impact the epichlorohydrin market. During the "Golden September and Silver October" period, usage in sectors such as construction, coatings, adhesives, electronics, copper-clad laminates, and encapsulation materials increases. These end-market shifts will directly transmit upstream to the epichlorohydrin market, prompting epoxy resin producers to raise operating rates and thereby boost procurement of epichlorohydrin. In addition, TGIC and other downstream sectors will generate supplementary demand for epichlorohydrin due to seasonal production increases. Although the supply-demand imbalance in the epichlorohydrin market will persist in the second half of the year, the demand stimulus from "Golden September and Silver October" may help alleviate some of the oversupply pressure. Still, given the overall supply-demand landscape for the full year, the demand growth from this peak season may not be sufficient to reverse the industry's persistently low capacity utilization. Competition will remain intense, and companies should seize opportunities to navigate the complex and volatile market environment.