How Price Dynamics of Hydrochloric Acid Influenced by the Demand Fundamentals
- 25-May-2022 8:44 AM
- Journalist: Timothy Greene
Hydrochloric Acid price movement has been going through an upward trend in several countries, such as Germany in the first week of May, backed by the strong demand in downstream food and beverages and disinfectant segments. However, stable demand from the disinfectant segment resulted in stable pricing movement for Hydrochloric Acid amid COVID-19 cases in China.
As per ChemAnalyst analysis, Hydrochloric Acid prices surged by nearly 1% in the month of May in Germany due to high demand from the downstream food, beverage, and textile industries amid the summer season in Europe, which increased the buying interest amongst the buyers for the product. Limited availability of inventories and uncertainties because of the escalated tension between Russia and Ukraine since the month of April caused supply chain disruption for Hydrochloric Acid in the European market in the last week of May. Meanwhile, a shortage of logistics and rising production costs made the traders indulge in revising the prices of Hydrochloric Acid.
In China, Hydrochloric Acid prices showed a stable trend after a significant rise of 4% in the first week of May, with the robust demand from the disinfectant segment due to rising COVID-19 cases in China. Moreover, implemented lockdowns in Hydrochloric Acid-producing cities such as Shanghai and Qingdao have led to halted production in China, which has conclusively resulted in an increment in the prices of Hydrochloric Acid is being witnessed in the month of May.
As per ChemAnayst, "The Hydrochloric Acid prices are expected to increase in June in Germany with a surge in the demand fundamentals from downstream food and beverages and disinfectant segments. Hydrochloric acid prices are expected to increase in China due to further firmness in demand from the end-user disinfectant and steel segment. Moreover, production is likely to improve with the gradual relief of China's COVID 19 lockdown restriction.