Natural Gas Price Volatility Lifted the Values of Hydrochloric Acid Globally
- 20-Sep-2022 7:24 PM
- Journalist: Bob Duffler
Global Hydrochloric Acid prices showed an upward trend in September, owing to the surging natural gas and feedstock prices. Besides, high inflation in the USA caused upward pressure on the prices of Hydrochloric Acid during September 2022.
Hydrochloric acid prices have increased in Europe due to crude oil and natural gas price volatility caused by disrupted upstream energy supplies. Russia's decision to reduce natural gas supply led to production cuts and thereby limited the availability of Hydrochloric Acid. The significant surge in crude oil, natural gas, and electricity prices diminished the confidence amongst buyers and market players for Hydrochloric Acid. The rising feedstock Chlorine and upstream energy prices in Europe have caused an increase in contract and spot prices of Hydrochloric Acid at the termination of the third week of September. As per the latest data, Euro depreciated by 0.089% against the US dollar this week, impacting the region's Hydrochloric acid and other commodities market.
In the USA, a significant consumer price hike was observed during mid-September 2022, backed by the volatility in energy prices amid an acceleration in the country's inflation rate. The demand fundamentals from the downstream industries, such as Pharmaceuticals & Food industries, also contributed to the surge in the prices of Hydrochloric Acid.
According to the ChemAnalyst prediction, "the prices of Hydrochloric Acid are likely to surge in September across the globe due to increment in the upstream natural gas prices. In the second half of 2022, global industry production may grow with a higher operational capacity to offset the burden of fixed costs in the regional market. Furthermore, the US Hydrochloric Acid price may surge in September due to an expected halt in production activities and high energy costs amid the rising inflation rate at a significant pace globally.