Price Trend

In August 2019, the comprehensive price of hydrochloric acid in North China fluctuated and remained stable as a whole. In August, the average price of mainstream hydrochloric acid quotation in North China rose from 123.33 yuan/ton at the beginning of the month to 146.67 yuan/ton at the middle of the month, an increase of 18.92%, and then fell to 123.33 yuan/ton at the end of the month. On the whole, the hydrochloric acid Market in North China fluctuated in August and remained stable as a whole. On August 31, the hydrochloric acid commodity index was 32.46.

II. Market Analysis

(1) Products:

This month, some manufacturers in the hydrochloric acid market quoted higher prices, but the overall continuation of the previous general market. Dezhou Shihua hydrochloric acid quotation is 100 yuan/ton, the quotation is temporarily stable; Dezhou Meihua hydrochloric acid quotation fell from 60 yuan/ton at the beginning of the month to 10 yuan/ton at the end of the month, the quotation fell by 50 yuan/ton, Jinan Yuanfei hydrochloric acid quotation is 200 yuan/ton, the quotation is temporarily stable; Hengtai chemical hydrochloric acid quotation is 180 yuan/ton, the quotation is temporarily stable; Wenshui synthetic hydrochloric acid quotation is first from month. The initial 110 yuan/ton rose to 190 yuan/ton in the middle of the month, an increase of 80 yuan/ton, and then fell to 160 yuan/ton at the end of the month.

(2) Industrial chain:

The positive price consumption of liquid chlorine in the upstream market supports hydrochloric acid to some extent. The downstream dyes, calcium chloride and chloroethane still buy hydrochloric acid on demand in the early stage. The hydrochloric acid market as a whole is still weak. By-product acid shocks the market. The pressure of hydrochloric acid shipment is high. The quality of by-product hydrochloric acid produced by TDI, chloropropene, propylene oxide and methane chloride is relatively good. For the purpose of shipment, each manufacturer has the situation of inverted freight shipment. Overall, the difficulty of delivery of hydrochloric acid is still a major problem.

(3) Industry:

In August 2019, there were 37 commodities on the rise and fall list of commodity prices in the chemical sector, of which 15 commodities increased by more than 5% accounted for 17.9% of the monitored commodities in the sector; the first three commodities were hydrogen peroxide (39.93%), acetic acid (20.90%) and butadiene (14.47%).

There are 39 kinds of products with a decline of more than 5%, accounting for 15.5% of the monitored products in this sector. The products with the first three declines are yellow phosphorus (-27.58%), epichlorohydrin (-23.28%) and sulfur (-19.38%).

This month’s average rise and fall was 0.03%. Generally speaking, the market of chlor-alkali industry has not increased much, and the slight increase of chlor-alkali market has limited impact on the demand for hydrochloric acid.

3. Future Market Forecast

After the adjustment in August, the capital reflux of each factory is in good condition, the equipment has been repaired and the production capacity has increased. Business analysts believe that the upstream liquid chlorine is good in the near future, but the downstream demand for rare earth and fuel is still general, and by-product acid shocks the market. Business analysts believe that the late hydrochloric acid market is still more vulnerable to consolidation.