Product
Supplier
Encyclopedia
Inquiry
Home > News > Market Flash > The price of liquid chlorine is firm, and the profitability of chlor-alkali companies is good

The price of liquid chlorine is firm, and the profitability of chlor-alkali companies is good

ECHEMI 2021-03-11

Entering March, the overall operating load of chlor-alkali enterprises in most regions was relatively normal. According to the latest sample of chlor-alkali enterprises, the average operating load of domestic chlor-alkali plants was 81.57%, an increase of 1.64 percentage points from 79.93% in the same period last month.

 

In terms of prices, according to monitoring, as of today, the local mainstream ex-factory price of 32% ion soda in Shandong is 390-440 CNY/ton, a slight increase from the high-end price of 390-430 CNY/ton in the same period last month; the local mainstream 50% ion soda The ex-factory price is 730 CNY/ton, which is also a sharp increase from 645 CNY/ton in the same period last month. In terms of liquid chlorine, the local mainstream ex-factory price of liquid chlorine for local tankers today is 1800-1900 CNY/ton, a significant increase from 850-1150 CNY/ton over the same period last month. So what is the current overall profitability of chlor-alkali companies? According to the chlor-alkali cost accounting model, let’s take a look at the current overall profitability of chlor-alkali companies in Shandong.

 

Based on the chlor-alkali cost accounting model, according to the latest average price statistics of alkali and chlorine, the current average profit of ECUs for chlor-alkali companies with self-provided power plants in Shandong is about 1122.84 CNY/ton, which is a significant increase of 164.83 CNY/ton from the same period last month. What happens to the profit level if you calculate according to the highest price and the lowest price?

 

According to the lowest price of alkali and chlorine, the average profit of chlor-alkali companies with self-provided power plants is RMB 987.92/ton. According to the highest price calculation, the ECU profit of the chlor-alkali enterprise of the self-provided power plant is 1,257.76 CNY/ton. So, what is the level of profitability of chlor-alkali companies that do not have their own power plants?

 

Based on Zhuochuang's chlor-alkali cost accounting model and calculated according to the average market price of liquid caustic soda and liquid chlorine today, up to now, the average profit of chlor-alkali companies without self-provided power plants is 416.29 CNY/ton. What will happen to the profit level if the calculation is based on the highest and lowest alkali chlorine prices?

 

Calculated according to the lowest price of alkali and chlorine, the average profit of ECUs of chlor-alkali enterprises without self-supplied power plants is 281.37 CNY/ton, while the average profit of chlor-alkali enterprises without self-supplied power plants is 551.21 CNY/ton.

 

Judging from the current market situation, Jinling plans to start parking for maintenance next week. The supply of the liquid caustic soda market is expected to decrease, which will bring a certain positive boost to the local liquid caustic soda market. The market terminal demand situation is relatively mild, and part of the downstream operating load is year-on-year. For the better. In the short-term, Shandong local liquid caustic soda market prices tend to consolidate, and there is no lack of the possibility of a moderate increase in prices.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.
Comment
Comment

Trade Alert

Delivering the latest product trends and industry news straight to your inbox.
(We'll never share your email address with a third-party.)

Scan the QR Code to Share

Feedback & Suggestions
Send Message

Thank you for your feedback. If you require further assistance, please contact us by email at info@echemi.com or call us at +86-532-55729510.