SunSirs: There Was Little Change in Support, and the Market of PAC Was Mainly Stable This Week

Price trend

According to data monitoring by c (100ppi. com), the PAC commodity index stood at 101.49 on March 30, unchanged from the previous day, down 28.85% from the cycle's highest point of 142.64 points (2021-11-01), and up 20.36% from the lowest point of 84.32 points on August 18, 2020. (Note: The cycle refers to 2019-04-01 to now)

According to the monitoring data of SunSirs, the market price of solid (industrial grade, content ≥ 28%) PAC in China was basically stable at around 1,877.5 RMB/ton during the week of March 27-30.

Analysis review

As of the 30th, some water treatment enterprises in China's main production areas had basically resumed production due to environmental shutdown. Local factories had normal production, relatively abundant spot inventory, and little change in downstream procurement demand. This week, the cost of raw material hydrochloric acid was stable, and fuel prices rebounded slightly. The mainstream market for PAC remained stable during the week, with occasional slight price increases for enterprises.

Raw hydrochloric acid: According to monitoring data from SunSirs, the domestic market price of hydrochloric acid for the week from March 27-30 was basically maintained at around 198 RMB/ton. The upstream liquid chlorine market had a downward trend this week, cost support weakened and downstream willingness to purchase was general. The analysis indicates that hydrochloric acid has insufficient support in the near future, and may mainly decline slightly.

Liquefied natural gas for production. According to data from SunSirs, domestic LNG prices rebounded during the week of March 27-30. As of March 30, the average price of liquefied natural gas in China was 4,344 RMB/ton, up 3.08% from the average price of 4,214 RMB/ton on March 27.

Market outlook

This week, the raw material market had been stable, and fuel costs had rebounded slightly. Given the normal production of PAC manufacturers, sufficient inventory in stock, and little change in downstream demand, traders in the market predict that the future market of PAC may have a slight increase. Due to the tepidity of the demand side, the probability will still be mainly stable, supplemented by minor adjustments.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.