Price trend
According to the monitoring data of SunSirs, the domestic market price of solid (industrial grade, content ≥ 28%) PAC on September 23 was mainly quoted at 2,031.25 RMB/ton, which was 1.93% lower than the mainstream market quotation of 2,071.25 RMB/ton on the 11th, and a decrease of 4.69% with the highest price this month (2,131.25 RMB/ton on September 7). That is to say, since the beginning of September 2022, PAC, which was affected by the increase in the price of raw materials and energy costs, had temporarily come to an end in this round of upward market.
Analysis review
From a practical point of view, the price increase of manufacturers was only a few dozen RMB to one hundred RMB. Due to the sufficient supply and inventory of manufacturers and the lack of a substantial increase in demand, the short-term end of the upward trend in the price of raw materials in some areas at this stage is indeed the trend. On the eve of the National Day holiday, due to the fact that some logistics vehicles cannot go on the expressway during the National Day, the difficulty in finding vehicles and the increase in transportation costs will affect the transaction price of PAC.
Raw material hydrochloric acid: The domestic hydrochloric acid market rose on September 23, an increase of about 2.04% compared with the hydrochloric acid market on the 1st. Its upstream liquid chlorine market has risen slightly recently, and its cost support has been strengthened. According to the market, in the first ten days of September, the prices of red materials and calcium powder generally rose, and energy costs also rose. Recently, the prices of some raw materials have fallen, and the cost of PAC has been partially lowered.
Energy liquefied natural gas: The data monitoring of SunSirs shows that the domestic LNG price has dropped from a high level. The quotations have been rising continuously since the 11th, but the quotations have been slightly fluctuated down since the 20th. On the 26th, the main quotation was about 6,488 RMB/ton, and the center of gravity moved down slightly; the price of raw gas rose, and due to the factors of pipeline maintenance and pre-holiday storage, liquefied natural gas rose first and then fell. On the 26th, the liquefied natural gas market weakened, and the liquid level pressure was relatively large. As the National Day holiday is approaching, the expressway is about to be restricted, and LNG plants have a strong willingness to cut prices to discharge inventory. It is expected that LNG prices will continue to fall in the short term.
Market outlook
The cost of raw materials has fallen after rising recently, and downstream demand has not increased significantly. Transportation is limited during the National Day holiday, and the market outlook for PAC is mainly stable with small adjustment.
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