SunSirs: Poor Demand, the Market of PAC Was Stable and Weaker

Price trend

According to the commodity market analysis system of SunSirs, the market of PAC had declined slightly by 0.71% since June: on June 1st day, the market of PAC (industrial grade, content ≥ 28%) in China was quoted at 1,768 RMB/ton, and on the 12th, the market was quoted at 1,756 RMB/ton.

Analysis review

According to the monitoring data of SunSirs, since the second quarter of 2023, the domestic market of PAC has shown a downward trend for several consecutive weeks. The weekly decline in April occasionally expanded. The decline in May first narrowed and then slightly expanded. Since June, it has continued to be slightly weaker. The water treatment enterprises in the main production areas of our country had normal production, market supply was sufficient, downstream procurement demand was poor, transaction was average, and the PAC market continued to be weaker.

Raw Material Hydrochloric Acid: According to the Commodity Market Analysis System of SunSirs, the domestic hydrochloric acid price fluctuated slightly in June, showing a "U" shape. Among them, the price of hydrochloric acid (31%) was about 175 RMB/ton on the 1st, dropped to 165 RMB/ton on the 5th, and slightly increased to 173 RMB/ton on the 12th. The upstream liquid chlorine market was consolidating at a low level, with average cost support and weak downstream purchasing willingness. Analysis suggests that the hydrochloric acid market will experience minor fluctuations and declines in the short term.

LNG for production. According to the Commodity Market Analysis System of SunSirs, the domestic LNG market has risen since June. Among them, the average price of LNG in China on June 1st was 4,416 RMB/ton, and on June 12th it was 3,728 RMB/ton, a significant decrease of 15.58%. Recently, the trend of the domestic LNG market was mainly upward, with a strong market sentiment supporting high prices. The bidding price for raw gas increased, cost side effect had positive effect. It is expected that domestic LNG prices will continue to rise in the short term.

Market outlook

Since June, the support of LNG (LNG) as the raw material fuel for the market was slightly strengthened. However, due to the sufficient supply of PAC market and the general downstream demand, the trading enterprises reported that business was difficult. With regard to the future market, the analysis believes that the market of PAC will remain stable and slightly weaker.

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