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Increased costs continue to promote the market to rise. According to this year's chlor-alkali market situation, the basic raw materials, salt, water, electricity, coal, rising, leading to the cost of domestic chlor-alkali enterprises has increased the phenomenon has become widespread. In particular, since the second half of the year, both caustic soda and liquid chlorine have risen, resulting in a continuous increase in the production cost of hydrochloric acid, and passively escalating prices have become a trend. This is one of the main reasons why the price of hydrochloric acid is higher this year than in previous years. The synthetic acid mainly consumes finished hydrogen and chlorine gas of chlor-alkali enterprises, and the increase in cost is even more obvious. Therefore, the increase in acid production is also larger than that of by-product acid production.
Deregulation of the ratio of synthetic acid and byproduct acid caused the market to rise. According to statistics, as of October, domestic synthetic hydrochloric acid production reached 6.93 million tons, a cumulative increase of 7.8%. The good situation of rising prices has become the highlight of this year. However, since the production of by-product acid occupies a considerable proportion of domestic hydrochloric acid companies, the main driving force for the continuous rise of synthetic acid is still closely related to the decline in the production of by-product acid. Based on factors such as energy conservation, emission reduction and environmental protection, some small chlorinated paraffins, chloroacetic acid, etc., produced by-products dropped drastically, and chlor-alkali companies also lowered their production due to lower prices of by-product acid, breaking the synthesis. The normal ratio of acid and by-product acid supply markets has led to an increase in synthetic acid prices. At the same time, due to the decline in production of acid by-products, the low-end prices continued to rise, and the overall domestic market for hydrochloric acid continued to rise.
Demand has been growing at the same time and the market has continued to take off. This year, there has been a noticeable increase in demand for pharmaceuticals, food, feed, and water treatment industries, and the demand for synthetic acids continues to grow. From the domestic production and sales curve of synthetic acid, it can be seen that the production and sales volume of synthetic acid continue to increase, and at the same time, the demand for by-product acid in some water treatment and chemical industries is also increasing, laying a solid foundation for the continuous advancement of the market. Especially since the third quarter, demand for chemical, thermoelectric, and rare earth industries increased again. This is also one of the main reasons why total hydrochloric acid production in the third quarter was higher than in the first two quarters, and imports increased in the third quarter. It also fully illustrates the increase in actual demand, which is an important driving force for the formation of a good market.
During the peak season, the market boosted into the winter, and the hydrochloric acid market in the northern region entered the peak season for heating demand, prompting the synthetic acid market to continue hitting new highs. For example, the high-end transaction price in the northeast region reached over 800 yuan, while the mainstream transaction price in the central and north China regions was also 500 yuan. the above. In addition, prices in eastern China have risen to 600 yuan due to declining local production and rising demand, and local regions have also reached around 800 yuan, and the north-south region has been growing at the same time. Since the overheating of the previous period of the hydrochloric acid market has faced technical adjustments, the increase in demand during the peak season has once again formed a great support for the market. Therefore, recent prices have also set a new high this year.
At the end of the year when energy conservation or emission reductions are consolidating, the task of energy conservation and emission reduction has become a major task in some localities. According to reports, in some provinces in northern China and central China, in order to complete energy-saving and emission-reduction targets, the power-restriction and production-reduction tasks are still issued from late November to early December, and some chemical, thermal power, and textile companies have limited production. The reduction in production has reduced the demand for hydrochloric acid, and high-end transaction prices in some regions have also declined. At the same time, the hydrochloric acid enterprises also have reduced production and reduced production. The new balance of supply and demand is expected to form at the end of the year, and bad bearishness will enter the game period. However, the overall positive trend has not changed. Therefore, the market outlook may enter a strong consolidation pattern.
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The hydrochloric acid market will force a strong consolidation
Recently, the domestic hydrochloric acid market continued to rise even higher. In some regions, tight supply and tight prices have become a hot spot in the hydrochloric acid market this year. Since entering the third quarter, due to the increase in costs, imbalance in product ratios, and the increase in demand, the market has continued to rise. At the same time, it has entered the winter heating demand season, which is pushing the new high-end transaction prices again. Up to now, the domestic mainstream price of synthetic acid (31% content) is between 500 and 600 yuan (ton price, the same below), and the high-end transaction price in some regions such as East China and Northeast China even exceeds 800 yuan, and the production of by-product acid (below 28%) is mainstream. The transaction price also reached more than 350 yuan, the quarterly increase of more than 40%, showing a flourishing scene. With the start of the national energy conservation and emission reduction phase in mid and late November, water treatment agents, thermoelectrics, textiles, and chemical companies in some regions will again restrict production and power cuts, which will, to a certain extent, restrain the overheating of the market, and the market outlook is expected to enter a strong trend. Consolidation pattern.