Domestic sulfuric acid market prices continue to continue the light trend

During the Spring Festival, the domestic sulfuric acid market was basically in a stable state. The major acid plants no longer made price adjustments, some downstream load reductions or production reductions, and the factories maintained low inventory to cope with the increase in inventory during the holiday season. Due to force majeure factors during the holiday season, the domestic sulfuric acid market continued to trade lightly. Most enterprises have postponed the resumption of work, and the downstream demand has shrunk significantly. Road transportation in many places is blocked. In many areas, transportation vehicles are in a "dilemma of not going out and coming in". The inventory of acid companies in many places is rising rapidly, and the sales pressure continues to increase. Although the quotation has not been adjusted in terms of price, the negotiation space for transactions has increased. Basically, the price has dropped steadily.

Last week, the domestic Sulfuric Acid market continued to continue the light trend. Although the downstream resumption and road transportation have improved, the inventory pressures of acid plants around the country are still on the high side, and the start of acid companies is still declining. As of last weekend, the overall domestic sulfuric acid operating rate was 67.22%, a decrease of 2.87% from last week ’s 69.89% and a decrease of 6.59% from 73.81% before the Spring Festival. The main reason for the decline in the start of construction is that the stock pressure of the acid companies in the early stage has continued to increase and has not been relieved, and manufacturers have been under pressure to reduce production. There are also some enterprises that can not get the raw materials in time, which also affects the overall start of the enterprise. At present, many large smelting enterprises such as Tongling in Anhui, Jiangxi Copper, Shuangshi in Jiangsu, Jinchuan in Guangxi, Chifeng Yuntong, Huludao Zinc Plant, Yuguang Gold and Lead have all cut their production.

Downstream:

Phosphate fertilizer: According to statistics, the operating rate of monoammonium phosphate last week was about 39.78%, down 1.96% from last week. Hubei Shilong, Western China, and Dasheng have stopped parking one after another. The operating rate in other regions has also remained low, and the overall operating rate has continued to decline. The operating rate of diammonium phosphate last week was about 43%, a decrease of 0.30% from last week, and a decrease of 6.36% from last year ’s 49.36%. At present, enterprises in Hubei are parking more for reasons, mainly including the six countries in Hubei, Dayukou in Hubei, Dongsheng Xiangyun, Hubei, the load of other enterprises is relatively low.

TITANIUM dioxide: The overall operating rate of titanium dioxide enterprises last week was 70.73%, a decrease of 2.26% compared with last week. The Longman Baililian Xinli Factory (formerly Yunnan Xinli) resumed work on January 9 and is expected to produce products in February; Luohe Xingmao will stop production at the end of April with a variable restart time; Guangxi Wuzhou Jiayuan will be shut down for maintenance on December 17, 2019 , Has not yet been restored; Guangxi Shunfeng Titanium Industry was shut down for maintenance on January 5 and has not yet been restored; Guangxi Jinmao was shut down for maintenance on January 15 and has not yet been restored; Guangxi Jinlong was suspended for maintenance during the Spring Festival and has not yet been restored, Guangxi Xilong Chemical 1 It was suspended for maintenance in May and has not yet resumed.

It currently appears that although road transport is gradually recovering, it is still difficult to find drivers. Therefore, the dilemma of "cars and no people" often appears, which is still a big restriction on the market. On the other hand, downstream companies are also facing problems such as raw materials not being available in time, serious product inventory backlog, and other issues, and sulfuric acid purchase enthusiasm is not high. Therefore, the domestic market is currently in a weak stage of supply and demand. Since last week, the downward trend in some regions has gradually emerged. The acid companies still mainly release inventory pressure in the short term, so the price decline is also reasonable. As the production, logistics, and demand in the later period are gradually on track, the sulfuric acid market can gradually pick up.