SunSirs: Unfavorable Support, PAC Market Still Weakened in the First Half of May

Price trend

According to the Commodity Market Analysis System of SunSirs, the market for PAC continued to fluctuate and decline slightly in the first half of May. On May 1st, the main quotation for China's solid (industrial grade, content ≥ 28%) PAC market was 1,800 RMB/ton, and on May 15th, the main quotation was 1,781 RMB/ton, a decrease of 1.04% within half a month.

Analysis review

Since February, the domestic market of PAC has been declining for several consecutive weeks. The weekly decline in April has occasionally expanded, and the decline in the first half of May has slightly contracted. The production of water treatment enterprises in China's main production areas was normal, the spot inventory was sufficient, downstream procurement demand was unfavorable, industry prosperity was not strong, and the market for PAC continued to be weaker.

Raw Material Hydrochloric Acid: According to the Commodity Market Analysis System of SunSirs, the domestic hydrochloric acid market in the first half of May fluctuated from around 207 RMB/ton to around 175 RMB/ton, with a half month drop of up to 15.46%. The upstream liquid chlorine market recently stabilized at a low level, with average cost support. The downstream market slightly declined, and downstream purchasing willingness had weakened. It is expected that in the middle and late May, the market price of domestic hydrochloric acid in the future will fall slightly in shock, with the average market price of about 170 RMB/ton.

LNG for production. According to the Commodity Market Analysis System of SunSirs, the domestic LNG prices continued to fluctuate slightly after a significant decline in the first half of May, with a weaker trend. Among them, the average price of LNG in China on May 1st was 4,416 RMB/ton, and on May 15th it was 3,964 RMB/ton, a half month decrease of 10.24%.

Market outlook

In the first half of the month, the market for raw material hydrochloric acid and fuel LNG plummeted significantly, and cost support also weakened. From the fundamental perspective of PAC, production in the main production areas was normal, there was sufficient stock in the market, and downstream demand continued to be weak, and there was a long-term oversupply in the market. In the future, the market for PAC will continue to fluctuate and weaken.

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