MoM increased by more than 300%, the liquid chlorine market ushered in a surge

Since March, the liquid chlorine market has gradually recovered, ushering in the long-lost spring market. As of April 8th, the domestic mainstream price of liquid chlorine was 700-800 yuan (ton price, the same below), an increase of more than 300% month-on-month. Among them, the Shandong region rose 500%, the Hebei region rose 300%, and the Jiangsu region rose 366%. In particular, the price in Inner Mongolia increased from 1 yuan at the end of February to 1,000 yuan.

Industry analysis, this round of soaring market in addition to the weak Caustic Soda market has limited some production capacity, the epidemic triggered a large increase in downstream disinfectant demand has also played a role in boosting. In addition, with the continuous resumption of downstream work, seasonal demand and industry recovery have also simultaneously favored the liquid chlorine market to rise.

Market alkali weak chlorine strong

Starting in March, the Caustic Soda market as a liquid chlorine twin starts to weaken. As of the end of March, the domestic mainstream transaction price fell to 1,600 to 1,800 yuan (32% of the ion-exchange membrane), a decrease of 16% month-on-month. The caustic soda market is weak, chlor-alkali enterprises are not enthusiastic about starting construction, and liquid chlorine supply is limited. In addition, due to the impact of the epidemic, the speed of resumption of production and downstream production is lower than that of the chlor-alkali industry, resulting in a reduction in the start-up load of chlor-alkali enterprises everywhere and a reduction in the output of liquid chlorine. However, March is a critical period for spring tillage and preparation. The demand for pesticides and chemical fertilizers is strong. Manufacturers have increased the purchase of raw material liquid chlorine, and the market has formed a situation where alkali weak chlorine is strong.

Henan Chemical Network statistics show that the average price of liquid chlorine in February was 219 yuan, a decrease of 56.8% month-on-month, and an increase of 223.17% year-on-year. Since the spring tillage in March, the liquid chlorine market has continued to rise, with high-end prices reaching around 900 yuan, with a monthly average price of 650 yuan, a month-on-month increase of 190% and a year-on-year increase of 945%.

"The sharp increase in the price of the liquid chlorine market has a certain relationship with the overall starting load of the chlor-alkali industry. It can be maintained for a short period of time. However, once the operating rate of the chlor-alkali enterprises is effectively increased, and the spring ploughing season is over, the tight supply of liquid chlorine in various places will inevitably It has been alleviated, and the possibility of a rational market decline has not been ruled out, "said an executive in charge of Pingmei Shenma.

Epidemic prevention and promotion of bottom

Zhao Baojun, vice chairman of the Henan Petroleum and Chemical Industry Association, said that liquid chlorine is one of the basic raw materials for the production of disinfectant. After the outbreak, in order to ensure the supply of disinfectants, most enterprises in Henan and the country increased the production of disinfectants, not only to the epidemic areas in Hubei Large quantities of transportation have greatly increased the demand in various parts of the province, which is another major factor in the continuous recovery of the liquid chlorine market.

It is understood that there are 563 anti-killing supplies enterprises nationwide, including 171 of 84 disinfectant production enterprises, with a daily capacity of 5,895 tons and a daily output of 4,597 tons. In the early stage of the epidemic, due to the low start-up load of these enterprises, 84 disinfectant and 84 disinfectant effervescent tablets, bleaching powder and other products were seriously out of stock. With the overtime and overtime guarantees provided by enterprises in various regions, the load has increased rapidly. By the end of February, the operating rate of disinfectant production enterprises in various regions had reached more than 90%, and the demand for liquid chlorine had also increased significantly, driving the market upward.

"With the effective control of the domestic epidemic situation, the demand for disinfectant began to decline, resulting in a high drop in the liquid chlorine market in mid-March. However, the outbreak of foreign epidemics began again, the export of disinfectant series products increased greatly, and liquid chlorine as a disinfectant The main raw materials, the market once again received high support. "Zhao Baojun analysis said.

Demand gradually recovered

Recently, due to the weak caustic soda market, the operating rate of domestic chlor-alkali enterprises has not been effectively improved, and the supply of liquid chlorine is limited, while the downstream enterprises are gradually resuming production, driving the steady increase in demand for liquid chlorine.

From the downstream point of view, the operating rate of the propylene oxide plant has reached 80%, and the operating rate of the methane chloride plant is also gradually increasing. In addition, during the spring cultivation period, with the rapid increase in the demand for pesticides, the consumption of liquid chlorine will also increase significantly.

Henan trader Li Bing said that it is currently the season of downstream conventional demand growth, but in the context of weak caustic soda, chlor-alkali enterprises will not significantly increase the work load, and it is expected that the liquid chlorine market will continue to be high in April.

However, the current foreign epidemic is serious, and the export market is beginning to be blocked. In addition to the strong demand for Bleach in the liquid chlorine market, other demand has been shrinking, and prices in some areas of the country have shown signs of correction. about. Although other regions such as Jiangsu, Henan, and Hebei still maintained stable offers, the trading atmosphere has cooled down significantly.

"Based on the current status of supply and demand, the liquid chlorine market shock adjustment pattern is inevitable, and the possibility of reversal of the alkali and chlorine markets is not ruled out." Li Bing said.