SunSirs: The Demand Was Not Good, and the Market of PAC in February Was Weaker

Price trend

According to the data monitoring of SunSirs, the PAC commodity index on February 28 was 104.05 points, which was the same as previous day, down 27.05% from the highest point of 142.64 points (2021-11-01) in the cycle, and up 23.40% from the lowest point of 84.32 points on August 18, 2020. (Note: the period refers to April 1, 2019 to now)

Spot: According to the monitoring data of SunSirs, the market price of solid (industrial grade, content ≥ 28%) PAC in China fell in shock in February, with a monthly decline of about 2.22%: the market price was 1,968.75 RMB/ton on the 1st and 1,925 RMB/ton on the 28th. By the end of February, the water treatment enterprises in China's main production areas had sufficient inventory, the demand for downstream purchase orders was weak, and the support for domestic PAC was insufficient, and the overall market price was mainly down.

Analysis review

Raw hydrochloric acid: According to the monitoring data of SunSirs, the domestic market price of hydrochloric acid rose slightly this month. The price of hydrochloric acid rose from 154.00 RMB/ton on February 1 to 166.00 RMB/ton on February 28, up 7.79%. The price at the end of the month fell 37.59% year-on-year. In general, the domestic hydrochloric acid market rose slightly this month, the upstream liquid chlorine market rose sharply, the cost support was good, and the purchasing enthusiasm of downstream ammonium chloride and PAC was general. According to the analysis, the recent market of hydrochloric acid may fluctuate and rise slightly.

Liquefied natural gas for production: According to the data of SunSirs, the domestic liquefied natural gas (LNG) fell first and then rose in February: from 6,060 RMB/ton on February 1 to 6,082 RMB/ton on February 28, with a monthly decrease of 0.13%; Among them, the highest price of the stage was 6,090 RMB/ton at the beginning of the month, and the lowest price of the stage was 5,724 RMB/ton on the 10th or so, with the monthly maximum amplitude of 6.01%. As the weather warms up, demand falls and market support weakens. In the absence of positive market conditions, domestic LNG prices are expected to continue to decline in the short term.

Market outlook

The raw material market was stable and slightly upward, but due to the continued weakness of downstream demand and the sufficient inventory of the manufacturer from year ago to date, the supply was large and the demand was small, and the market support was unfavorable. It is expected that the market of PAC will continue to be weaker in the near future.

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