SunSirs: The Market for PAC Rose in Mid September

Price trend

According to the Commodity Market Analysis System of SunSirs, the market for PAC rose in mid September. The solid (industrial grade, with a content of ≥ 28%) PAC market in China was quoted around 1,700 RMB/ton on the 10th and 1,735 RMB/ton on the 19th, an increase of 2.0%. The production of water treatment enterprises in China's main production areas was normal, with sufficient market inventory. Downstream procurement was on demand, and the price of raw material hydrochloric acid had significantly increased. The market for PAC had followed suit.

Analysis review

Raw Material Hydrochloric Acid: According to the Commodity Market Analysis System of SunSirs, the domestic hydrochloric acid market price increased significantly in mid September. The upstream liquid chlorine market had recently seen a significant increase, with good cost support. Downstream ammonium chloride and PAC market prices had slightly increased. Analysis suggests that the hydrochloric acid market will mainly fluctuate and rise in the near future.

LNG for production: According to the Commodity Market Analysis System of SunSirs, the price of LNG in China decreased in mid September: on September 10th, the average price of LNG in China was 4,412 RMB/ton, while on September 19th, the price was 4,274 RMB/ton, a decrease of 3.14%. Recently, the price of LNG in China first decreased and then increased. On the 11th, domestic LNG prices began to decrease. The market was dominated by oversupply, with a large number of heavy vehicles and limited downstream delivery capacity, resulting in a continuous decline in LNG prices. On the 14th, LNG prices began to rebound and rise. After continuous price reductions, inventory had been alleviated, and LNG prices had increased in most regions of China, resulting in a strong market trend.

Market outlook

In mid September, raw material prices significantly increased, while the fuel LNG market declined, and the cost support of PAC was mixed. On the supply side, China's PAC manufacturers produced normally and had sufficient inventory; On the demand side, there was no significant improvement in purchasing willingness, and stability is the main focus. Analysis suggests that the market for PAC is expected to be dominated by consolidation in the near future.

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