Price trend

According to the Commodity Market Analysis System of SunSirs, the market for PAC slightly declined in late December. The market price for solid (industrial grade, with a content of ≥ 28%) PAC in China was mainly quoted at around 1,777.50 RMB/ton on the 31st, a decrease of 0.07% from the quoted price of 1,778.75 RMB/ton on the 21st. Water treatment enterprises in China's main production areas had normal production, sufficient market inventory, downstream procurement on demand, stable raw material hydrochloric acid prices, and a consolidation of the PAC market.

Analysis review

Raw material hydrochloric acid: According to the commodity market analysis system of SunSirs, the domestic hydrochloric acid market price had remained stable recently, and as of December 31, the domestic hydrochloric acid market price was 112.50 RMB/ton. The upstream liquid chlorine market had recently stabilized at a low level, with average cost support. The downstream PAC market had consolidated, while the ammonium chloride market fluctuated and rose. The downstream purchasing willingness was good.

LNG for production: According to the Commodity Market Analysis System of SunSirs, the domestic price of LNG increased in late December. The slight increase in raw gas prices had increased cost support, driving up liquid prices. After snowfall, traffic flows smoothly. Frequent cold air attacke in China had been affected by cooling weather in many areas, leading to a significant increase in downstream replenishment demand and a continuous rise in LNG prices. In terms of sea and gas, some receiving stations had raised prices.

Market outlook

This week, raw material prices remained stable, fuel LNG prices rose, and the overall cost of PAC increased. On the supply side, Chinese PAC manufacturers were producing normally and had sufficient inventory; On the demand side, there had been no significant improvement in purchasing willingness, and stability was the main focus. Analysis suggests that the recent market for PAC may be dominated by consolidation.

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