Inorganic Chemicals Showed Different Price Change

Raw salt   
The price of raw salt went down in May 2007, with the average
price of sea salt in Shandong province dropping by RMB10/t to
RMB80/t, compared with that of April 2007. The unduly output
growth of raw salt caused the price downturn. China's output of
raw salt was 13.25 million tons in the first four months of 2007,
an increase of 19% over the same period of 2006, much higher than
the output growth of caustic soda and soda ash.
   In June 2007, the demand for raw salt in caustic soda sector
will rise considerably, however, due to the rapid output rise
of raw salt, the price of raw salt will probably decrease
further.

Soda ash
In May 2007, due to the constant demand growth for soda ash, the
supply of soda ash was tense, and the price of soda ash continued
to increase. China's average ex-work prices were RMB1 650/t for
heavy soda ash and RMB 1 600/t for light soda ash, with an average
growth of 6.5% and 10.3% respectively compared with those in
April 2007.
   In June 2007, the output of soda ash will continue to increase
considerably, however, due to demand growth in downstream
sectors and export increase, the market of soda ash will be
relatively stable, and the price will not fluctuate greatly.

Calcium carbide   
In May 2007, China's average price of calcium carbide rose
rapidly due to supply deficit of calcium carbide. The average
spot price of calcium carbide reached RMB2 800/t, compared with
RMB2 650/t of April 2007.
   Due to the price rise of power and rectification being
conducted to the calcium carbide sector, the output of calcium
carbide is expected to decrease. The price of calcium carbide
will continue to rise in June 2007 because the demand for PVC
(polyvinyl chloride) - downstream of calcium carbide will be
brisk.

Sulfuric acid
In May 2007, the demand for sulfuric acid in downstream sectors
such as chemical fertilizer, pesticide and metal processing
increased considerably and the output of sulfuric acid therefore
increase rapidly. The price of sulfuric acid remained stable
because the market condition did not change drastically.
   In May 2007, the average price of sulfur-based sulfuric acid
was RMB450-550/t, basically the same as that in April 2007.
  In June 2007, the demand for sulfuric acid will continue to
increase, however due to the considerable output rise of
sulfuric acid, the price of sulfuric acid will keep stable.

Liquid chlorine
In May 2007, China's price of liquid chlorine decreased
considerably due to the output increase in most chlor-alkali
producers. In East China, the demand for liquid chlorine in
downstream sectors shrank, the price of liquid chlorine
therefore dropped to RMB1 200-1 400/t by the end of May 2007.
  In June 2007, the sale volume of liquid chlorine is expected
to decrease, and the price drop of liquid chlorine will slow
down.