Price trend

According to the commodity market analysis system of SunSirs, the market of PAC fell slightly in June. China's solid (industrial grade, content ≥ 28%) PAC market reported about 1,768 RMB/ton on the first day and 1,721 RMB/ton on the 30th, with a monthly decline of 2.69%. This month, the prosperity of the water treatment industry in the main production areas of China was still general. The enterprise production was normal, the market supply was abundant, the downstream procurement demand continued to be weak, the transaction was very general, and the PAC market was slightly downward.

Analysis review

Since the second quarter of 2023, the domestic market of PAC showed a downward trend for several consecutive weeks. The weekly decline in April had occasionally expanded. The decline in May first narrowed and then slightly expanded. In June, the decline was slightly weaker. Occasionally, the weekly market had temporarily stabilized, and some weekly declines this month had slightly increased compared to last month.

Raw Material Hydrochloric Acid: According to the Commodity Market Analysis System of SunSirs, the domestic hydrochloric acid price fluctuated and decreased by 2 RMB/ton in June, with the main price reported at 175.00 RMB/ton at the beginning of the month and 173.00 RMB/ton at the end of the month, a monthly decrease of 1.14%. The upstream liquid chlorine market saw a significant increase, with good cost support; The domestic hydrochloric acid market experienced fluctuations this month, with manufacturers having low inventory; Downstream demand was weak, and purchasing willingness was not good. Affected by the surge in upstream liquid chlorine, analysis suggests that the hydrochloric acid market may experience slight fluctuations and increases in the near future.

LNG for production. According to the Commodity Market Analysis System of SunSirs, the domestic LNG market fluctuated and rose 14.56% in June. Among them, the average price of LNG in China on the 1st was 3,750 RMB/ton, and the average price on the 30th was 4,296 RMB/ton. The monthly highest point was 4,376 RMB/ton on June 19th, and the monthly lowest point was 3,674 RMB/ton on the 4th.

Market outlook

In June, the raw material market was nearly stable, the fuel LNG market was on the rise, and the cost support of PAC was slightly strengthened. Limited by the weak procurement demand in China's PAC market and abundant spot supply, the water treatment industry was difficult to do business as of 30th, and the daily transaction situation was very general. With regard to the future market, the analysis believes that the market of PAC will remain stable and slightly weaker.

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