SunSirs: Domestic Hydrochloric Acid Prices Fell by 10.26% This Week (May 8-14)

Price trend

According to the Commodity Analysis System of SunSirs, the price of hydrochloric acid in China significantly decreased this week, with the average market price dropping from 195.00 RMB/ton at the beginning of the week to 175.00 RMB/ton at the end of the week, a decrease of 10.26%. Weekend prices fell 41.67% year-on-year.

On May 15th, the hydrochloric acid commodity index was 46.05 points, unchanged from the previous day, a decrease of 66.60% from the cycle's highest point of 137.89 points (2021-10-26), and an increase of 156.12% 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 for Wenshui Hecheng’s 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’s hydrochloric Acid offered a weekend price of 200 RMB/ton, which wass temporarily stable compared to the beginning of the week; The weekend quotation for hydrochloric acid from Shijiazhuang Zhijian was 200 RMB/ton, which was temporarily stable compared to the beginning of the week; Xiangcheng San'an’s hydrochloric acid was quoted at 200 RMB/ton over the weekend, a decrease of 100 RMB/ton 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 1,788.75 RMB/ton at the beginning of the week to 1,781.25 RMB/ton at the end of the week, a decline of 0.42%. Weekend prices fell by 21.49% year-on-year; The market price of ammonium chloride fell sharply, from 795.00 RMB/ton at the beginning of the week to 692.50 RMB/ton at the end of the week, a decrease of 12.89%. Overall, upstream support was insufficient and downstream demand was weakening.

Market outlook

In the middle and late May, the market price of hydrochloric acid may mainly decline 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 near future.

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