What is Epichlorohydrin
Analysts Sentiment
Bullish
22.5%
Neutral
23.8%
Bearish
53.7%
What's driving sentiment this week:
Past Week (2026-06-01 to 2026-06-07) — Sentiment: Bearish
Inventory overhang in China as of June 3 has caused steep downward pressure on epichlorohydrin prices, exacerbating supply-side weakness.
Demand signals remain subdued amid the price weakness and inventory buildup, limiting upward momentum in consumption or restocking.
Broader macro factors do not currently offset the domestic glut, sustaining bearish pressure on margins across the Chinese epichlorohydrin market.
This Week (2026-06-08 to 2026-06-14) — Outlook: Bearish
Epichlorohydrin prices face continued downside risk given persistent inventory burdens reported last week and limited demand recovery.
The next significant catalyst lies in any updated inventory or production data from China that could confirm ongoing oversupply (expected later this week).
A sharp rebound in downstream demand or export growth would be the primary risk to this bearish outlook.
Key Market Impact
Inventory overhang in China is dominating pricing, driving epichlorohydrin spot prices and producer margins sharply lower as of early June.
Producers and traders are likely to defer restocking and curtail production increases, while buyers push for further price concessions amidst the glut.
How About the Price?
Price Trajectory 2020–2026 (Brief Recap)
Phase 1 — Stable Early 2020 (2020-01 to 2020-03): Prices began at $120.5 in January 2020 with no recorded influences, rising steadily to $130.0 by March 2020 in absence of explicit events.
Phase 2 — Gradual Uptrend Through 2020 and 2021 (2020-04 to 2021-12): Prices increased from $135.0 in April 2020 to $185.0 by December 2021, supported by steady upward trends without reported influence factors.
Phase 3 — Continued Moderate Growth in 2022 and 2023 (2022-01 to 2023-12): Prices rose from $188.0 in January 2022 to $245.0 in December 2023, reflecting stable market conditions without documented event impacts.
Phase 4 — Sustained Incremental Gains in Early to Mid 2024 (2024-01 to 2024-12): Prices moved from $248.0 in January 2024 to $275.0 in December 2024, with no recorded supply or demand disruptions.
Phase 5 — Accelerated Growth Beginning 2025 into 2026 (2025-01 to 2026-06-08): Prices climbed from $278.0 in January 2025 to an estimated $340.0 by June 8, 2026, completing the data series with no recorded influencing factors.
Supply-side factors
- No supply-side factors recorded or reported in influence data for the entire period.
Demand-side factors
- No demand-side factors recorded or reported in influence data for the entire period.
Substitutes & Alternatives
| Substitute / Alternative | Replacement Scenario / How It Substitutes |
|---|---|
| Glycerol-derived ECH (bio-ECH) | A functionally identical drop-in replacement for petroleum-derived ECH in all applications (epoxy resins, synthetic glycerol, water treatment resins). Produced via the glycerol chlorohydrin route (e.g., Solvay Epicerol). Requires no reformulation by end users; substitution is purely at the production level, driven by feedstock cost and sustainability considerations. |
| Bisphenol F diglycidyl ether (BFDGE / DGEBF) | In epoxy resin formulations, BFDGE (made from bisphenol F and ECH) can partially or fully replace standard bisphenol A epoxy resins (DGEBA) where lower viscosity or improved chemical resistance is needed. Reduces ECH demand indirectly by shifting resin chemistry, but still requires ECH in its own synthesis. |
| Sorbitol polyglycidyl ether / aliphatic epoxides | In specialty epoxy coatings and adhesives requiring reduced toxicity or bio-based content, aliphatic epoxides (e.g., sorbitol polyglycidyl ether, trimethylolpropane triglycidyl ether) can replace ECH-based aromatic epoxy systems. Requires reformulation of the curing system and acceptance of different mechanical properties. |
| Azetidinium-based wet-strength resins | In paper wet-strength applications, polyamidoamine-epichlorohydrin (PAE) resins can be partially substituted by azetidinium-functional polymers or glyoxalated polyacrylamide (GPAM) resins, which avoid the use of ECH entirely. Requires process adjustment and may yield lower wet-strength performance at equivalent add-on levels. |
| Propylene oxide (PO) | In certain crosslinking and epoxidation applications where ECH is used as a reactive diluent or epoxide source, propylene oxide can serve as a lower-cost alternative. PO lacks the chlorine functionality, so it is only applicable where the chloromethyl group of ECH is not required for the target reaction. Partial substitution in some polyurethane and polyol applications. |
| Synthetic glycerol from other routes | ECH is a precursor to synthetic glycerol via hydrolysis. This use is largely obsolete since natural glycerol from biodiesel/oleochemical production is abundant and cheaper. Bio-derived glycerol has effectively displaced ECH-based synthetic glycerol in most markets, eliminating a significant historical demand segment for ECH. |
| Diglycidyl ether of cyclohexanedimethanol (CHDM-DGE) | In high-performance coatings and composites requiring UV stability and low color, cycloaliphatic epoxides such as CHDM-DGE or 3,4-epoxycyclohexylmethyl-3,4-epoxycyclohexane carboxylate can replace ECH-based aromatic epoxy resins. These are not made from ECH and require full reformulation of the resin and hardener system. |
Regulatory Status
| Region | Regulation / Policy Name | Issuing Authority | Year (enacted or latest revision) | Key Requirement / Threshold | Source |
|---|---|---|---|---|---|
| United States | OSHA Permissible Exposure Limit (Table Z-1) | US Occupational Safety and Health Administration (OSHA) | Current (no update since original) | 5 ppm (19 mg/m³) 8-hour TWA; skin notation | https://www.osha.gov/chemicaldata/46 |
| United States | EPA TSCA Amendments to New Chemicals Regulations | US Environmental Protection Agency (EPA) | 2024 (final rule Dec 18; effective Jan 17 2025) | Premanufacturing notices (PMNs), Significant New Use Notices (SNUNs), and Microbial Commercial Activity Notices (MCANs) must undergo EPA determination before commencement of manufacturing, importing, or processing | https://www.epa.gov/reviewing-new-chemicals-under-toxic-substances-control-act-tsca/updates-new-chemicals-regulations |
| United States | EPA TSCA Section 716.10 and 716.50 Reporting for Existing Chemicals | US Environmental Protection Agency (EPA) | 2025 (deadline extended from Mar 13 2025 to Jun 11 2025 then to May 22 2026) | Submission of unpublished health and safety studies for 16 specified chemicals (including Epichlorohydrin) within the extended deadline | https://www.federalregister.gov/documents/2025/03/13/2025-03865/certain-existing-chemicals-request-to-submit-unpublished-health-and-safety-data-under-the-toxic |
| United States | NIOSH IDLH Values and Carcinogen Policy | National Institute for Occupational Safety and Health (NIOSH) | Current | IDLH: 75 ppm; considers Epichlorohydrin a potential occupational carcinogen | https://www.cdc.gov/niosh/idlh/106898.html |
| India | Customs Notification No. 24 (ADD) imposing Anti-Dumping Duty | Indian Ministry of Finance | November 11 2024 | 5-year anti-dumping duty on imports of Epichlorohydrin from China, Korea, and Thailand; applies to tariff item 2910 30 00 | https://www.custada.in/document/document/Ntfn-024-ADD-11.11.2024.htm |
| International (UN) | UN Model Regulations on the Transport of Dangerous Goods | United Nations Economic Commission for Europe (UNECE) / UN Committee of Experts | Current (GHS Rev. 11 2025 incorporated in transport classification) | UN number: 2023; Hazard class: 6.1 (toxic); subsidiary risk: 3 (flammable); packing group: II | https://www.inchem.org/documents/icsc/icsc/eics0043.htm |
Key Influence Events
Epichlorohydrin (ECH), chemically known as 1-chloro-2,3-epoxypropane (CAS 106-89-8), is a highly reactive organochlorine compound and epoxide with the molecular formula C3H5ClO. It is a colorless, low-viscosity liquid with a pungent, chloroform-like odor, miscible with most organic solvents but only slightly soluble in water. ECH is a critical industrial intermediate used primarily in the manufacture of epoxy resins (by reaction with bisphenol A), synthetic glycerol, water treatment chemicals (polyamide-epichlorohydrin resins), and pharmaceuticals. It is also used as a solvent and as a crosslinking agent for various polymers. ECH is classified as a probable human carcinogen and is handled under strict industrial hygiene protocols. The dominant commercial production route is the chlorohydrin process from propylene, though a bio-based route from glycerol (a biodiesel by-product) has gained significant commercial traction since the 2000s.
Top Countries Production Capacity
Production Process of Epichlorohydrin
Epichlorohydrin (ECH), chemically known as 1-chloro-2,3-epoxypropane (CAS 106-89-8), is a highly reactive organochlorine compound and epoxide with the molecular formula C3H5ClO. It is a colorless, low-viscosity liquid with a pungent, chloroform-like odor, miscible with most organic solvents but only slightly soluble in water. ECH is a critical industrial intermediate used primarily in the manufacture of epoxy resins (by reaction with bisphenol A), synthetic glycerol, water treatment chemicals (polyamide-epichlorohydrin resins), and pharmaceuticals. It is also used as a solvent and as a crosslinking agent for various polymers. ECH is classified as a probable human carcinogen and is handled under strict industrial hygiene protocols. The dominant commercial production route is the chlorohydrin process from propylene, though a bio-based route from glycerol (a biodiesel by-product) has gained significant commercial traction since the 2000s.
Specs & Grades
| Property | Typical Value / Range | Unit | Grade / Note |
|---|---|---|---|
| Purity (GC) | ≥99.5 | wt% | Technical / Commercial grade |
| Purity (GC) | ≥99.9 | wt% | High-purity / Epoxy resin grade |
| Color (APHA/Hazen) | ≤10 | Pt-Co | Commercial grade |
| Water content (Karl Fischer) | ≤200 | ppm | Commercial grade |
| Acidity (as HCl) | ≤10 | ppm | Commercial grade |
| Hydrolyzable chloride | ≤50 | ppm | Epoxy resin grade |
| Total chloride | ≤100 | ppm | Commercial grade |
| Boiling point | 116–117 | °C at 1 atm | Physical constant |
| Density at 20°C | 1.175–1.183 | g/cm³ | Physical constant |
| Refractive index (n20/D) | 1.438–1.440 | — | Physical constant |
| Flash point (closed cup) | 31–33 | °C | Safety parameter |
| Residue on evaporation | ≤5 | ppm | High-purity grade |
| 1,3-Dichloro-2-propanol (DCP) impurity | ≤50 | ppm | Epoxy resin grade |
Who are the Top Players?
| Company | Headquarters | Key Facilities |
|---|---|---|
| Olin Corporation | Clayton, Missouri, USA | Freeport TX, Stade Germany, Terneuzen Netherlands |
| Solvay S.A. | Brussels, Belgium | Map Ta Phut, Thailand, Taixing, China |
| Formosa Plastics Corporation | Taipei, Taiwan | Point Comfort TX, Baton Rouge LA |
| Shandong Haili Chemical Industry Co., Ltd. | Huantai, Shandong, China | Huantai County, Zibo City, Shandong Province |
| Sumitomo Chemical Co., Ltd. | Tokyo, Japan | Niihama, Ehime, Japan |
| Jiangsu Yangnong Chemical Group Co., Ltd. | Jiangsu, China | Jiangsu Province, China |
| Lotte Fine Chemical | Seoul, South Korea | Ulsan, South Korea |
| NAMA Chemicals | Saudi Arabia | Saudi Arabia |
| DCM Shriram Chemicals | India | India |
| Aditya Birla Chemicals | Mumbai, India | India |
| Grasim Industries Ltd | India | India |
| Epigral Limited | India | India |
| Hanwha Solutions Chemical Division | South Korea | South Korea |
| Samsung Fine Chemicals Co., Ltd. | South Korea | South Korea |
| Hexion Inc. | Texas, USA | Netherlands |
| Kashima Chemical Co., Ltd. | Japan | Japan |
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