Global Hydrochloric Acid Market Demonstrated Downtrend
- 18-Aug-2022 5:23 PM
- Journalist: Nicholas Seifield
New Delhi: Hydrochloric Acid prices showed a downward trend in July in the Global market, owing to the decline in the demand from primary consuming downstream industries such as Steel and disinfectant. In China, prices for Hydrochloric Acid showed a southward trajectory in July due to poor demand fundamentals in the domestic market. Hydrochloric Acid prices declined due to the region's lower downstream steel demand and piled-up inventories in Europe. Moreover, Hydrochloric Acid costs were down in the USA, backed by the slow sales in the downstream steel industry amid conservative buying and high supplies in July.
Hydrochloric Acid prices witnessed a fall throughout July in China as the weak construction steel demand diminished the offers for the product in the steel sector. Besides, steel mills occupied in destocking the piled-up inventories by reducing output in the local market. As per the traders, poor new housing demand decreased steel production activities. Hydrochloric Acid market players made sales at reduced profit margins to avoid piling up inventories in the local Chinese market.
There was sufficient supply to fulfil the appetite for existing demand in the European region amidst the holiday season. Declination in new overseas offers amidst escalated geopolitical conflict curbs in the area caused a fall in the prices of Hydrochloric Acid. Meanwhile, the decline of new bids from the downstream Steel and disinfectant segment in the local market led to the southward price trend of Hydrochloric Acid in Germany. Additionally, prices have stabilized in Italy, as manufacturers have either stopped production activities or planning to go on summer maintenance.
In the USA, Hydrochloric Acid prices settled at a month-on-month fall of 2% throughout July, backed by the sluggish demand fundamentals from the US local market. Due to weakened manufacturing activities in July, US downstream steel demand for hydrochloric acid is under pressure. Traders and sellers occupied clearing backlogs and made sales at reduced profit margins amid ample availability of stocks.
ChemAnalyst predicted that "prices of Hydrochloric Acid are likely to surge in upcoming weeks in the Global market due to anticipated increment in the feedstock liquid Chlorine prices coupled with the resumption of the market activities in the European region. In the year's second half, global industry productivity may expand as a higher operational capacity to compensate for the burden of fixed costs. Furthermore, the US Hydrochloric Acid price may surge in July due to elevation in the production activities in the local market.