Hydrochloric Acid prices Affected by the Downstream Demand
- 12-May-2022 11:39 AM
- Journalist: Nina Jiang
Shandong, China: Global Hydrochloric Acid prices have been going through a downward trend in several countries, including the USA and Germany, in the starting week of May, backed by the weak demand in downstream steel and disinfectant segments. This development is majorly attributed to the disrupted supply chain amidst the ongoing conflict in the eastern European region that led to the raw material shortages. However, in China, robust demand from the disinfectant segment resulted in surged pricing movement for Hydrochloric Acid amid COVID 19 cases, although the market in the following week remained silent in China due to the labor day holidays.
As per ChemAnalyst, the offers for Hydrochloric Acid in the German domestic market declined nearly 2% in May due to sluggish demand from the primary Hydrochloric Acid consuming steel industry amidst the ongoing conflict and reduced buying interest amongst the buyers. Limited demand from end-use consumers and uncertainties because of the escalated tension between Russia and Ukraine since April caused supply chain disruption for Hydrochloric Acid in the European market in May. Meanwhile, High logistics and production costs made the traders indulge in revising the prices of Hydrochloric Acid, and the European players were hesitant to procure the Russian cargoes at the black sea.
In China, Hydrochloric prices showed an upward trend with 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 lockdown in Hydrochloric Acid-producing cities such as Shanghai and Qingdao has led to Halted production in China, which conclusively resulted in an increment in the prices of Hydrochloric Acid is being witnessed in the first week of May.
As per ChemAnayst, “The Hydrochloric acid prices are anticipated to show an increase in June in Germany with an increment in the demand from downstream steel and disinfectant segments. Prices of Hydrochloric Acid are expected to increase in China due to further firmness in demand from the end-user disinfectant and steel segment. Production activities are likely to improve with the relaxation in the COVID 19 cases in China.