Price trend

According to the commodity market analysis system of SunSirs, the PAC market rose first, then fell, and then remained flat in the middle of July, showing a small upward trend in general: China's solid (industrial grade, content ≥ 28%) PAC market was quoted at about 1,712 RMB/ton on the 11th, and 1,718 RMB/ton on the 20th, an increase of only 0.36%. The operating rate of water treatment enterprises in China's main production areas had decreased, the overall market inventory was sufficient, and the downstream procurement demand was average; Affected by the price rise of raw material hydrochloric acid, the market of PAC increased slightly.

Analysis review

According to the data of SunSirs, at the beginning of the third quarter of 2023, the domestic market of PAC showed a slight decline in early July, and the market rose in mid July.

Raw material hydrochloric acid: According to the Commodity Market Analysis System of SunSirs, the domestic price of hydrochloric acid increased from 173 RMB/ton to about 179.6 RMB/ton since July. Recently, the price of hydrochloric acid in Henan, the main production area of water treatment in China, had risen, leading to an increase in the cost of PAC, which had driven its market upward.

LNG for production. According to the Commodity Market Analysis System of SunSirs, the domestic LNG market in mid July fell first and then rose. Among them, on the 11th, the average price of LNG in China was 4,056 RMB/ton, and on the 20th, the average price was 4,148 RMB/ton, with a ten-day increase of 2.27%.

Market outlook

Recently, the market of raw materials and fuels had risen, and the cost of PAC increased; The PAC manufacturers in China had normal production, sufficient inventory and little change in downstream demand. With regard to the future market, the analysis believes that the PAC market will continue to be affected by the cost, and it is likely that it will be slightly stronger in the short term. In the medium and long term, it still needs to see the support of downstream demand.

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