Inorganic Chemicals Kept Bullish

Raw salt  

China's price of raw salt remained stable in June 2007, with the
average ex-work price of RMB200-250/t. The output of raw salt
presented overall growth, in East China the output increased
because the rain was less, and in Southwest regions the super
rain contributed to the output decrease.
   In July 2007, due to the serious drought, the output of raw
salt in North China, Northeast China and Central China will
increase rapidly, however, because the demand for raw salt in
downstream sectors including caustic soda and soda ash will rise
considerably, the price of raw salt will be stable, and the
situation of oversupply will partially be eased.

Soda ash

In June 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 prices of soda ash
increased by RMB30/t compared to those in May 2007, and in East
China and South China the average ex-work prices of heavy soda
ash were RMB 1 600/t.
   In July 2007, the output of soda ash will continue to increase
considerably, however, due to demand growth in downstream
sectors and the increase of production cost, the price of soda
ash will probably continue to increase.

Calcium carbide

In June 2007, due to supply tense of calcium carbide, China's
average price of calcium carbide continued to rise with the
average prices being RMB50/t over those in May 2007. In northwest
region, the main production base of calcium carbide in China,
the average ex-work prices of calcium carbide rose to RMB2650/t.
   Due to the price rise of power and raw materials, 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 July 2007 because the
demand for PVC (polyvinyl chloride) - downstream of calcium
carbide will be brisk.

Sulfuric acid

In June 2007, due to the demand rise for sulfuric acid in
downstream sectors and the increase of production cost caused
by the price rise of imported sulfur, the price of sulfuric acid
increased considerably with the average price of sulfuric acid
(containing 98% H2SO4) being RMB50/t higher than that in May
2007.
   In June 2007, the average ex-work price of sulfuric acid
(containing 98% H2SO4) was RMB400/t, and the price in South of
China was slightly lower than that in North of China.
   In July 2007, the demand for sulfuric acid in downstream
sectors such as chemical fertilizer and pesticide will continue
to increase, and the price of sulfuric acid will rise constantly.