Price Track of Some Inorganic Chemical Products in April 2011
Hydrochloric acid (HCl): prices will keep stable with a slight decline
In March 2011, HCl prices were basically stable in most parts of China but declined slightly in Northeast and South China.
In East China, pharmaceutical and metallurgical industries had a strong demand for HCl. The output of by-product HCl increased, but the output of synthetic HCl was steady, so hydrochloric acid prices were stable.
In Central China, HCl produced by chlor-alkali enterprises is mainly for their own uses. There were no significant fluctuations in the end demand for HCl. The HCl market continued to run steadily.
In North China, the demand for HCl from pharmaceutical, rare earth and thermal power industries had relatively small ups and downs. This supported the stability of the HCl market to some extent. The output of synthetic HCl shrank, but the sales volume of HCl remained normal, and HCl prices kept stable.
In South China, the water treatment industry mainly consumed by-product HCl, resulting in a reduction in the sales of synthetic HCl. Downstream industries, such as the pharmaceutical industry, had a stable demand for HCl. The supply of HCl was stable. The HCl market continued to run steadily.
In Southwest China, the total supply of HCL changed little. Downstream enterprises had a stable demand for HCl. The HCl market continued to run steadily. The market supply and demand of HCl was in balance, and HCl prices were stable.
In Northwest China, the output of synthetic HCl was stable, and the sales of HCl were smooth for HCl manufacturers. The downstream demand for HCl was stable, having no signs of increase, and having a limited pull to HCl prices.
In Northeast China, because some chlor-alkali enterprises shut down their chlorine product units for maintenance, the production of HCl reduced, but the by-product HCl output of the fertilizer industry was stable. Downstream industries, such as pharmaceutical, thermal power, chemical, electroplating and steel industries, had a stable demand for HCl.
Prices: in the end of March, HCl prices in various regions were: East China RMB400 -550 /t, Central China RMB350- 600 /t, South China RMB300 - 500 /t, North China RMB400 - 550 /t, Southwest China RMB350- 500 /t, Northwest China RMB300 - 400 /t, and Northeast China RMB530 - 750 /t.
Factors:
(1) Chlorine products are now in the peak sales period, and the synthetic HCl units of chlor-alkali enterprises will remain to have a relatively low operating rate. The fertilizer industry will continue to maintain full production, so the output of by-product HCl is high;
(2) downstream industries, such as rare earth, chemicals, iron and steel, food processing and feed additives industries, will have a stable demand for HCl, and pharmaceuticals and thermal power industries will continue to have a shrinking demand for HCl;
(3) HCl prices will continue to keep stable. In some areas, they may go down slightly.
In April, the output of HCl will be steady, and HCl prices will keep stable with a slight decline.
Table 1 Market price of domestic HCl at the beginning of April (RMB/t)
Region East China South China North China Northeast Southwest Central China Northwest
Date Bottom Top Bottom Top Bottom Top Bottom Top Bottom Top Bottom Top Bottom Top
2011-4-11 400 550 300 550 400 500 530 750 300 600 350 600 200 330
2011-4-8 400 550 300 550 400 500 530 750 300 600 350 600 200 330
2011-4-7 400 550 300 550 400 500 530 750 300 600 350 600 200 330
2011-4-6 400 550 300 550 400 500 530 750 300 600 350 600 200 330
2011-4-3 400 550 300 550 400 500 530 750 300 600 350 600 200 330
2011-4-2 400 550 300 550 400 550 550 750 300 600 350 600 200 330
2011-4-1 400 550 300 550 400 550 550 750 300 600 350 600 300 350
Source: CCR
Liquid chlorine: prices will first rush up and then fall
In March, because the demand of downstream markets for liquid chlorine increased, liquid chlorine prices jumped up. The overall market price of liquid chlorine was basically first up and then down. Liquid chlorine prices in North China had a significantly greater hike than in South China, and the inter-regional price transmission speed was relatively slow.
In East China, in early March liquid chlorine prices went up relatively fast, so downstream enterprises reduced their demand for liquid chlorine; but some time later, liquid chlorine prices went down sharply; in late March, liquid chlorine prices slowly picked up.
In Central China, the demand for chlorinated paraffins increased, and the operating rate of PVC plants recovered slightly, driving up the demand for liquid chlorine, but liquid chlorine prices were stable.
In South China, downstream demand for liquid chlorine increased, but the overall supply of liquid chlorine was plentiful. Affected by the transport distance, liquid chlorine prices varied greatly but generally kept stable.
In North China, due to the enforcement of the energy saving and emission reduction policy, chlor-alkali enterprises reduced their operating rates, so the market supply of liquid chlorine was insufficient. Downstream demand for liquid chlorine was limited, but liquid chlorine prices climbed slightly.
In Southwest China, driven by the market recovery of downstream chlorine products such as methane chloride, liquid chlorine prices climbed slightly.
In Northwest China, because some chlor-alkali enterprises shut down their production facilities for maintenance, the supply of liquid chlorine fell short, but the hike of liquid chlorine prices was lower than that in surrounding regions.
In Northeast China, the amount of liquid chlorine put into the market surged. Pesticide, chemical, paper and nonferrous metallurgical industries had a stable demand for liquid chlorine; but at some places, the supply of liquid chlorine was excess, so its prices went down.
In the end of March, liquid chlorine prices in various regions were: East China RMB1 300 - 1 800 /t, Central China RMB1 300 - 1 600 /t, South China RMB1 300 - 1 900 /t, North China RMB1 400 - 1 600 /t, Southwest China RMB1 650 - 2 100 /t, Northwest China RMB1 400 - 1 700 /t, and Northeast China RMB1 700 - 1 900 /t.
Factors:
(1) In April, the production of chlorine products will still be in the peak production season, and the expanded and new caustic soda units of some chlor-alkali enterprises will be put into production, so the output of chlorine will increase accordingly;
(2) the demand for major downstream chlorine products will not have significant fluctuations;
(3) because the amount of liquid chlorine put into the market in various places has a significant difference from the actual downstream consumption of liquid chlorine, a large imbalance between the supply and demand of liquid chlorine may occur in some areas;
