How steel sector surging the prices of Hydrochloric Acid globally
- 30-Mar-2022 9:51 AM
- Journalist: Bob Duffler
Hydrochloric acid prices took an upsurge in March globally due to surged demands in the steel sector where it is consumed as a pickling agent. Along with this, a steep rise in the price of Hydrochloric acid has been observed during February on the back of high demand from domestic as well as the regional market of Europe. Inadequate availability of material and high upstream natural gas prices remained a key concern for domestic manufacturers in the European market.
Demand fundamentals for Hydrochloric Acid from the downstream steel industry in Europe remained buoyant due to increasing consumption from the construction sector, which resulted in a steep uptrend price of Hydrochloric Acid in the European market. Prices of Hydrochloric Acid surged by 2% in Germany in March.
Ukraine and Russia together are exporters of steel to various countries across the globe. Supply for steel in the global market has been disrupted due to the ongoing war. Global steelmakers, mainly from Germany and UK, have hiked prices as a result of the geopolitical conflict between Russia and Ukraine. Indian steelmakers faced a similar predicament to raise prices in India. Market participants of Hydrochloric Acid were compelled to revise their offers in line with the price parity in the global market.
Manufacturers had to battle with the soaring input cost of Hydrochloric acid in Europe due to the surged feedstock Chlorine prices and high energy costs. Moreover, a rise in demand was also observed in March from India's disinfectant segment for Hydrochloric Acid as a result of fear of resurgence of covid 19 all over Asia.
As per ChemAnalyst, "Prices of Hydrochloric acid is expected to increase by 2% in April due to expected rise in feedstock Chlorine prices in India". If the Russia Ukraine conflict escalates further, the price trend of Hydrochloric acid would showcase an upward trajectory globally in the coming months as the conflict will result in an increase in energy prices globally.