Allyl Chloride is a key intermediate used across epichlorohydrin production, pharmaceuticals, plastics, agrochemicals, polymer stabilizers, and specialty resins. Because it sits inside such a critical value chain, its pricing moves sharply whenever propylene prices shift, chlorine supply changes, or energy markets show volatility.
Here’s the thing: allyl chloride doesn’t have a “slow market.” It reacts instantly to feedstock shifts, refinery turnarounds, downstream resin demand, and environmental regulations around chlorinated chemicals. This makes it one of the more dynamic specialty chemical markets to follow.
This report breaks down the full Allyl Chloride Price Trend, historical patterns, global market movements, downstream demand cycles, supply chain issues, and price forecasts.
Allyl Chloride Price Trend Overview
Q1 – Q2 Movement
The first half of the year showed moderate but firm upward movement in allyl chloride pricing due to:
Higher propylene feedstock prices
Tight chlorine availability in Asia
Strong demand from epichlorohydrin (ECH) producers
Increased environmental compliance costs
Disruptions in European chlor-alkali capacity
Key Observations
Asia remained the most price-sensitive due to volatile propylene markets.
Europe saw the highest prices due to energy surges and plant maintenance shutdowns.
US markets remained relatively stable, supported by integrated petrochemical clusters along the Gulf Coast.
Major Market Drivers
1. Propylene Feedstock Costs
Propylene is the primary raw material for allyl chloride.
When crude oil rises → propylene rises → allyl chloride follows immediately.
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2. Chlorine Availability
Chlorine output is directly linked to caustic soda production.
If caustic demand is weak, chlorine becomes short — pushing allyl chloride prices up.
3. Epichlorohydrin (ECH) Demand
Over 90 percent of allyl chloride is consumed to make ECH, which goes into:
Epoxy resins
Wind turbine blades
Industrial coatings
Electronics laminates
Automotive composites
So strong resin demand directly boosts allyl chloride pricing.
4. Environmental Regulations
Stricter rules on chlorinated intermediates impact:
Plant operating costs
Waste treatment requirements
Permits and compliance timelines
Especially in Europe and parts of East Asia.
5. Energy and Utility Costs
Because allyl chloride production is energy-intensive, any rise in electricity or steam costs translates quickly into pricing pressure.
6. Supply Chain Disruptions
Turnarounds, outages, and port delays regularly impact pricing due to tight global capacity.
Historical Price Behavior
2019–2020
Stable markets with moderate polyresin demand.
2021
Sharp surge in pricing due to high propylene costs and supply constraints.
2022
Energy crisis in Europe pushed costs dramatically higher.
2023
Market corrected slightly but stayed elevated due to strong epoxy resin demand.
2024–2025
Prices remained volatile, tracking crude oil and propylene movements closely.
Supply Chain Structure
Flow
Propylene + Chlorine → Allyl Chloride
Allyl Chloride → Epichlorohydrin
ECH → Epoxy Resins → Coatings/Aerospace/Electronics
Key Bottlenecks
Propylene shortages
Chlorine supply fluctuations
High storage and transport restrictions due to hazardous classification
Limited specialized manufacturing facilities
Market Developments
Recent Highlights
Expansion of ECH production in China increased local demand.
Western manufacturers focusing on cleaner ECH production (glycerin route) affect allyl chloride share.
Southeast Asia increasing supply due to new propylene capacities.
Coatings and wind turbine industries driving steady epoxy resin usage.
Regional Price Overview
Asia-Pacific
Volatile pricing driven by propylene fluctuations and regional ECH capacity. China typically shows the widest price spread.
Europe
Highest pricing globally due to stringent environmental compliance and high utilities.
North America
More stable thanks to integrated propylene infrastructure and consistent resin demand.
Middle East
Competitive pricing due to strong petrochemical feedstock advantage.
Latin America
Dependent on imports; thus pricing mostly follows Asian and US Gulf trends.
Forecast and Outlook
Expected Trend
Prices are expected to remain moderately firm this year.
Drivers Supporting the Outlook
Rising crude oil supports propylene prices
Healthy epoxy resin demand
Tight chlorine supply in certain markets
Strong construction and electronics recovery
Upgrades in wind energy components (large epoxy resin consumers)
Possible Downward Pressures
If glycerin-based ECH replaces more allyl chloride volumes
Stable propylene supply from new crackers
Weak paints and coatings demand
Procurement Strategy Recommendations
1. Monitor Crude Oil and Propylene Daily
These directly dictate the feedstock cost curve.
2. Use Formula-Based Contracts
Ideal for managing crude-linked cost fluctuations.
3. Secure Quarterly Contracts
Shorter tenor protects buyers from extreme volatility.
4. Work With Integrated Producers
They offer more stable pricing due to control over upstream.
5. Track Epoxy Resin Sector Closely
ECH demand patterns give early signals about future allyl chloride price movement.
Market Outlook Summary
Allyl chloride remains a highly feedstock-driven market with strong ties to propylene, chlorine availability, and downstream ECH demand. With sustained global demand for epoxy resins and rising energy and compliance costs, prices are expected to remain firm in the near term.
Contact Information
Company Name: Procurement Resource
Contact Person: Ashish Sharma (Sales Representative)
Email: sales@procurementresource.com
Location: 30 North Gould Street, Sheridan, WY 82801, USA
Phone:
UK: +44 7537171117
USA: +1 307 363 1045
APAC: +91 1203185500
