Hydrochloric acid (HCl) in China weakened sharply in February H1 as market sentiment shifted from late-January volatility to a rapid correction. Dynamics were dominated by mixed domestic demand and persistent supply pressures. Electronic-grade pickling and printed-circuit-board production remained resilient, supporting pockets of absorption, while construction-related pullbacks and a cold spell trimmed pickling demand. Broader manufacturing activity showed softening. Supplying bottlenecks persisted, with higher liquid-chlorine costs raising production economics and logistical frictions adding to handling costs at major ports, limiting merchant flexibility. Nickel-laterite re-entry contributed modest tightening, while general pickling demand in steel-related segments held baseline but did not spark a rally.
