Low demand, slightly lower price of polyaluminium chloride

Commodity index: on April 25, the commodity index of polyaluminium chloride was 98.78, unchanged from yesterday, down 9.38% from 109.01 (2019-08-28), the highest point in the cycle, and up 1.52% from 97.30, the lowest point on April 23, 2020. (Note: cycle refers to 2019-04-01 till now)

Market: according to the monitoring data of business agency (100ppi. Com), in April 2020, the production of polyaluminium chloride (solid, content ≥ 28%) manufacturers was normal, but the demand continued to be low, some enterprises still mainly consumed inventory, and some manufacturers lowered their prices. April 26th week quote: industrial grade, liquid and alumina content 10%-12%, including tax, price 350-400 yuan / ton; solid content, 20-21% quoted price 860 yuan / ton, reduction of 30 yuan / ton; content 24%, price 1220 yuan / ton, reduction 20 yuan / ton; solid content, 28% or more, price 1550 yuan / ton; spray content of 30% yuan, 1850 yuan / ton; drinking water level, content exceeding 28% 28% yuan / ton, food price quoted About 800 yuan / ton.

Upstream: according to the data of business agency, on April 26, the main factory price of hydrochloric acid in North China was temporarily stable: Dezhou Maihua’s quotation was 160 yuan / ton, the quotation was temporarily stable; Jinan Yuanfei’s quotation was 200 yuan / ton, the quotation was temporarily stable; Shanxi Wenshui’s quotation was 230 yuan / ton, the quotation was temporarily stable; Dezhou Shihua’s quotation was 250 yuan / ton, the quotation was temporarily stable; Taiyuan kunshengda’s quotation was 420 yuan / ton, the quotation was temporarily stable, and the actual transaction price was based on the agreement Business shall prevail. The upstream liquid chlorine market is temporarily stable, the downstream procurement enthusiasm is general, and the supply of hydrochloric acid is normal.

Downstream: the current water treatment market demand is still sluggish, and enterprises generally reflect that this year’s goods are hard to sell, engineering negotiation is difficult, and the cycle is long.

Industry: in late July 2019, recently, the water purification and environmental protection enterprises in Yong’an Road sub district office of Gongyi City, Henan Province received the notice of production suspension, which requires that: according to the analysis of the city’s environmental pollution and future pollution weather, the municipal office requires all deep treatment enterprises to stop production and treatment before acceptance, and can resume production after dispatching or acceptance according to the office. The production was resumed for ten days in August and stopped again on 15th. According to the manufacturer, the shutdown was more affected by the National Games held in Zhengzhou on September 8th. The local environmental protection inspection was strict, and all local enterprises in Gongyi were required to stop production for environmental protection treatment and maintenance. After the National Games on September 8, the local manufacturers did not receive the notice of commencement immediately, and the strict inspection of environmental protection was in progress. In late September, local manufacturers in Gongyi began to resume production one after another, and the supply of goods gradually returned to normal. On December 19, Gongyi, the main production area of Henan Province, issued an emergency notice, requiring all enterprises to stop production and all goods transportation from now until January 1, 2020 in accordance with the spirit of the 16th scheduling meeting of Gongyi City for environmental pollution control. Zhengzhou municipal leaders will lead the supervision group to continuously supervise and inspect the implementation of management and control. If it is found that the implementation is not in place, the person in charge of the enterprise and the truck driver will be detained. The enterprise will be included in the blacklist of integrity, and the enterprise will be subject to top-level punishment. This notice is very strict for manufacturers and freight requirements, and manufacturers should stop production. During the Spring Festival holiday from January to February 20, 2020, the relevant enterprises in the main production area stop production and delay to return to work. After February 20, the manufacturers in the main production area returned to work one after another, the logistics gradually recovered in March, and the transportation cost was normal. In April, the production was normal, some enterprises still had high inventory, poor demand and difficult delivery.

Future market forecast: according to the analysis of the business community, the current weak demand determines the current market trend, high inventory increases the market pressure, and the future market of polyaluminium chloride still needs time to recover.