Price trend

According to the Commodity Analysis System of SunSirs, domestic hydrochloric acid prices slightly declined this week, with the average market price dropping from 207.00 RMB/ton at the beginning of the week to 195.00 RMB/ton at the end of the week, a decrease of 5.80%. Weekend prices fell by 35.00% year-on-year.

On May 7th, the hydrochloric acid commodity index was 51.32 points, unchanged from the previous day, a decrease of 62.78% from the cycle's highest point of 137.89 points (2021-10-26), and an increase of 185.43% from the lowest point of 17.98 points on September 5th, 2012. (Note: The cycle refers to the period from September 1st, 2011 to the present)

Upstream support was insufficient, downstream procurement weakened

From the supply side, the price of domestic hydrochloric acid market fell slightly this week, and the manufacturer's inventory was average. The weekend quotation of Wenshui Hecheng for hydrochloric acid was 220 RMB/ton, which was temporarily stable compared to the beginning of the week; Liaocheng Huatong's quotation for hydrochloric acid over the weekend was 55 RMB/ton, which was temporarily stable compared to the beginning of the week; Shandong Zhenkun offered a weekend price of 200 RMB/ton for hydrochloric acid, which was temporarily stable compared to the beginning of the week; The weekend quotation for hydrochloric acid from Shijiazhuang Zhijian was 200 RMB/ton, a decrease of 60 RMB/ton compared to the beginning of the week; The weekend quotation for Xiangcheng San'an hydrochloric acid was 300 RMB/ton, which was temporarily stable compared to the beginning of the week.

From the perspective of the upstream and downstream industrial chain of hydrochloric acid, the upstream liquid chlorine market was consolidating at a low level, with average cost support. The price of downstream PAC market fell slightly, from 1,800.00 RMB/ton at the beginning of the week to 1,788.75 RMB/ton at the end of the week, down 0.62%. Weekend prices fell by 22.31% year-on-year; The market price of ammonium chloride fell sharply, from 865.00 RMB/ton at the beginning of the week to 795.00 RMB/ton at the end of the week, a decrease of 8.09%. Overall, upstream support was insufficient and downstream demand was weakening.

Market outlook

In mid to early May, the market price of hydrochloric acid dropped mainly in a narrow range. The upstream liquid chlorine market was consolidating at a low level, with insufficient cost support. The downstream PAC and ammonium chloride markets slightly declined, and downstream purchasing willingness was weak. Analysts from SunSirs believe that hydrochloric acid will mainly experience a slight fluctuation and decline in the short term.

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