For the Quarter Ending December 2022
North America
The Hydrochloric acid prices were low in the quarter ending December of 2022 in North America. The silent downstream steel demand due to the bearish steel market and domestic mills continued outages and supplies along with industrial output curbed in the fourth quarter of 2022. The rising market uncertainties led to the plunging price trajectory for the product throughout the quarter. The escalating inflation slowed economic activities, which has deteriorated buying sentiments in the downstream sectors for Hydrochloric Acid. The inventories remained steady in this quarter for the commodity. Additionally, the low demand and ample stocks led to the Force Majeure in Covestro, located in Texas (USA), from 23 December 2022 to 31 December 2022. Therefore, the price of Hydrochloric Acid 35-37% was quoted at USD 153/MT Ex-Works USGC (USA) in December 2022.
APAC
The hydrochloric acid market showcased mixed sentiments in the quarter ending December 2022. The commodity prices were impacted by the fluctuating downstream steel demand in the Chinese market. The ease in the COVID-19 curbs in late November 2022 has led to a pick-up in the downstream demand and prices in the APAC Region. Rising offers and prices in China remained the key factor in supporting the price movement of the product. The Domestic downstream steel demand and declining coal prices have resulted in increasing profit margins in the market. Meanwhile, volatility in the upstream energy prices also remained the key factor affecting the price parity of Hydrochloric Acid in the APAC region. Thus, the price of Hydrochloric Acid was assessed at USD 26/ton FOB Qingdao (China) in December 2022.
Europe
The prices of Hydrochloric Acid demonstrated mixed market sentiments in the fourth quarter, due to the supply disorder and weak price support from the downstream industries. The crippled Russian oil and gas supplies have led to an input cost pressure on the Hydrochloric Acid manufacturers in Europe. The worsened demand fundamentals and skyrocketing energy prices have led to production cuts in the region, affecting the price trajectory of Hydrochloric Acid. The deteriorating downstream steel market remained the primary factor of the tumbled price trend for Hydrochloric Acid in this quarter. The price of Hydrochloric Acid 33-37% was assessed at USD 130/ton FOB Hamburg (Germany) in December 2022.
For the Quarter Ending September 2022
North America
Hydrochloric Acid prices showcased an upward trend during the third Quarter of 2022. High energy prices and a high inflation rate caused input cost pressure on the Hydrochloric Acid market in the USA. Meanwhile, the elevation in the commodity prices resulted from a stronger US dollar globally, impacting the profit margins of the enterprises. Downstream demand from the industries such as disinfectant and steel segment remained stable in this Quarter. In addition, Olin's declaration of reduction in the Chlor alkali capacity by the end of this year has led to bullish buying sentiments in the regional market of Hydrochloric Acid. Thus, the price of Hydrochloric Acid was assessed at USD 179/ton Ex-Works USGC (USA) 2022.
APAC
Hydrochloric Acid pricing dynamics showcased a surging trajectory in the Quarter ending September 2022. The commodity prices rose with the rise in the raw material costs and significant currency depreciation against the US dollar, as the rise in the inflation rate has led to upward input cost pressure for Hydrochloric Acid in Japan, China, and other APAC countries. Meanwhile, increased demand from the primary consuming steel sector also impacted the costs of the product. Escalation in the cases of Covid 19 in China hampered production in several chemical-producing cities, such as Shanghai, amidst a zero covid policy. Thus, Hydrochloric Acid's price was assessed at USD 190/ton FOB Tokyo (Japan) during September 2022.
Europe
The prices of Hydrochloric Acid demonstrated stable market sentiments in the domestic and regional markets due to the supply disorder. The conflict between Russia and Ukraine has resulted in a cut in Russian gas and oil supplies. Thus, market players struggled with high energy and electricity prices during the third Quarter of 2022. The buying interest amongst the domestic buyers in the European market witnessed plunging momentum, and surplus availability amid slow offtakes remained a key concern for the traders and sellers. The high inflation rate and currency depletion against the US dollar also conclusively affected the European countries' commodity market. Demand for the product from the downstream steel and disinfectant industry remained constant in the Quarter ending September 2022.
For the Quarter Ending June 2022
North America
In North America, Hydrochloric Acid prices showcased an overall stable trend throughout Quarter 2 of 2022. High demand from the steel industry amid various government initiatives in the construction segment and a high inflation rate due to the War caused upward pressure on the costs of Hydrochloric Acid in the USA. Hydrochloric Acid prices were impacted by the decent demand from the downstream industries, such as disinfectant and steel industries. High energy values affected the price movement of the product in the North American region. Meanwhile, a stock shortage made enterprises raise the prices for the product amid high demand from downstream industries. Force majeure in primary chlor alkali plant, Olin led to crippled availability of inventories for Hydrochloric Acid in North American region.
APAC
Hydrochloric acid prices surged in the second quarter of 2022 due to increased demand from the primary consuming steel sector. Drowning cases of Covid 19 in Asian countries hampered production in several chemical-producing cities, such as Shanghai, amidst the government's implemented a zero covid policy. Meanwhile, inhibited production led to a shortage of inventories to fulfill existing demand. HCl prices showed inclination backed by the insufficient availability of stocks and a high inflation rate. Moreover, high energy values due to seasonal electricity consumption in China also conclusively affected the price trend of Chinese Hydrochloric Acid. Besides, Downstream buyers showcased bullish buying activity at lower costs which widened the demand-supply gap in the local market of Asian countries in June end.
Europe
In Europe, the prices of Hydrochloric Acid showed weak market sentiments in the domestic and regional markets due to the supply disruption. The ongoing conflict between Russia and Ukraine diminished the buying interest amongst the domestic buyers in the European market, and surplus availability amid slow offtakes remained a key concern for domestic traders. The high inflation rate due to War also conclusively affected the product's values in the local market of Europe. Meanwhile, traders took advantage of scarcity and raised their offers on their existing piled-up inventories. In addition, demand fundamentals for the product from the downstream steel industry remained firm. They supported a marginal uptrend in European Market in May. The price of HCl remained stable and assessed at USD 140/MT FOB Hamburg in Germany at the end of June.
For the Quarter Ending March 2022
North America
In North America, Hydrochloric Acid prices showcased fluctuations throughout Quarter 1 of 2022. Demand in the primary HCL-consuming steel industry was deemed high as various initiatives have been planned by the government of several North American countries, such as the USA. In January, strong performance of the steel sector led to an appreciable rise in the prices of Hydrochloric acid. Players like Steel Dynamics and Cleveland-Cliffs showcased optimism in the consumption of steel in the regional market. Prices of Hydrochloric Acid took a downfall in February because of stability in demand and ample availability of stock. Meanwhile, during March increase in offtakes of HCl in the oilfields contributed to the upward trend in its prices. Prices of Hydrochloric Acid were assessed at USD 178/MT Ex-Works USGC in the USA during March.
Asia Pacific
Hydrochloric Acid prices declined in quarter 1 of 2022 as China’s carbon emission targets compelled primary consuming steel sector manufacturers to keep the output low. Moreover, a resurgence of Covid 19 in Asian countries resulted in halted production in several chemical producing cities, such as Shanghai amidst the country implemented a zero covid policy. Additionally, resurgence of Covid 19 led to ample availability of stock. HCl prices came down from USD 53/MT FOB Qingdao to USD 53/MT since late-march in China. Manufacturers were compelled to lower the prices to maintain stable offtakes in the domestic sector.
Europe
In Europe, prices of Hydrochloric Acid showed strong sentiments in the domestic market due to the disruption in supplies. Inadequate availability amid high natural gas prices remained a key concern for domestic manufacturers due to which they were compelled to revise their offers during quarter 1 of 2022. Meanwhile, domestic traders took advantage of scarcity and raised their offers on their existing inventories. In addition, demand fundamentals for the product from the downstream metal industry remained firm. HCl prices were assessed at USD 145/MT FOB Hamburg in Germany at the end of March.
For the Quarter Ending December 2021
North America
In North America, Hydrochloric Acid (HCl) prices witnessed a significant hike during early Q4 backed by the extended shortage of Chlorine in the region. Force majeure by Oxychem on its Chlor-Alkali plant continued to impact HCl prices in Q4. Even though the performance of the steel sector remained sturdy across Q4, however the year end slowdown caused a substantial drop in the overall HCl consumption. Major steel companies like Nucor, Steel Dynamics and Cleveland-Cliffs in US posted an overall decline in late November sales which extended in the month of December as well. HCl (35-37%) prices in US turned bearish, drifting to USD 165 per MT Ex-Works USCG in December.
Asia
In Asia, Hydrochloric Acid (HCl) prices fluctuated in a narrow range after October in majority of the Asian countries. The decline in demand for Hydrochloric Acid post festive season in India levied a direct effect upon its prices. Besides decline in Chlorine prices due to extensive production of Caustic Soda despite of its narrowed demand also influenced overall prices of HCl in Q4. HCl Industrial Grade (33%) prices in December finally settled at USD 54 per MT in December. In China, astonishing decline in the overall steel consumption due the dept crisis in the construction sector caused a major fall in HCl prices in the near term. HCl prices in China drifted throughout Q4 amidst limited demand of the product amidst its ample availability. HCl prices in China were assessed at near USD 50 per MT in the whole of December.
Europe
Market sentiments of HCl remained firm throughout Q4 following the limited product availability. Towards the start of November, prices of HCl increased steeply as the supply of raw material Chlorine remained tight with producers seeking the best value to compensate for high energy cost. Unprecedented rise in the Natural Gas prices in Europe heightened fears of acute power crunch. Due to abrupt surges in energy values, several European chemical producing companies increased their product prices. HCl prices were assessed to be USD 125/MT FOB Hamburg (Germany) as Q4 progressed in November. With resumption in operations of Vinnolit Caustic Soda plant, supply situation marginally eased towards December end.
For the Quarter Ending September 2021
North America
In North America, Hydrochloric Acid (HCl) prices witnessed an exponential hike during the third quarter backed by the extreme shortage of Chlorine in the region. In US, many chemical industries were still recovering from the impacts of winter storm Uri when Ida hurricane made landfall in the Gulf Coast of the US in August end. Oxychem declared force majeure on its Chlor-Alkali plant that further impacted the supplies of the chlorine in the region. The situation further exerted pressure on the HCl market as many of the chlorine production plants were already closed at that time period. Hence, limited supply of feedstock and firm demand from the downstream sectors supported the pricing trend of HCl in the concerned quarter.
Asia
In Asia, Hydrochloric Acid prices soared throughout the quarter backed by the limited availability of feedstock and firm offtakes from the downstream sectors in Q3 of 2021. In China, despite the supply chain disruption caused by the congestion on several ports, marginal rise in the prices of HCl was observed due to the ample availability of the product in this timeframe. In India, prices of HCl experienced a prevalent hike supported by the modest demand from downstream manufacturers in the domestic as well as international market. During this quarter, manufacturers majorly focused on catering to exports which provided firmness to the HCl market in India. Therefore, HCl Industry Grade (33%) Ex- Depot Mumbai prices gained significant value and rose to USD 51.55/ MT during September.
Europe
The European Hydrochloric Acid (HCl) market witnessed an upward trajectory in the prices backed by the sturdy offtakes from the downstream manufacturers in both domestic and international markets. Spike in the feedstock Chlorine prices was observed due to the reduced operations at chlor-alkali plants because of energy crisis across the European region. In addition, soaring freight charges and import delays due to the shortage of shipping containers further sent ripples to the prices of HCl in the region.
For the Quarter Ending June 2021
North America
Hydrochloric Acid (HCl) prices remained firm during this quarter in North America, backed by tight supply and improving demand from the downstream sectors. Due to the extreme shortage of Chlorine in the US after prolonged shutdown of major Chlor-Alkali units, the price of almost all Chlorine derivatives increased rapidly in USA. In addition, Westlake Chemicals announced force majeure at its Washington plant during first half of June, this plant has the capacity of 75 KTPA of Chlor-alkali production. The shut down reduced the supply of several chemicals including Hydrochloric Acid, Caustic Soda and Chlorine in USA.
Asia
Hydrochloric Acid prices fluctuated in a narrow range in the APAC region, due to abundant inventory levels amidst modest to firm demand. The demand for HCl remained modest in China from the downstream sectors, while the availability remained abundant to satisfy the overall need. Meanwhile, Kamira announced to increase its production capacity for Sodium hypochlorite and Polyaluminum Chloride, where HCl is the key ingredient in the manufacturing process. The expansion will inevitably increase the demand for Hydrochloric Acid in the country although most of the company’s demand can be satisfied by the captive production. While in India, the prices traversed a steep downward trajectory during this period, due to lacklustre buying demand in effect of pandemic in the country and ample inventory levels. Thus, price dwindled effectively and reached USD 34.5/MT during June in India.
Europe
The European Hydrochloric Acid (HCl) market remained stable during this quarter. The demand showcased decent rise throughout the quarter while availability remained fairly tight to hold on the price uptrend. Downstream sectors like PVC and steel were showing firm sentiments, while feedstock Chorine was running on shortage in the meantime. The circumstances supported overall increase in the offers of Hydrochloric Acid across the region during this quarter in the region. In addition, prices of feedstock chemicals also increased due to shipment delays and soaring freight cost.
For the Quarter Ending March 2021
North America
Continuous shortage of the feedstock chemicals and halted production activities forced the prices of HCl to rise aggressively across the region. Multiple hurricanes during Q4 2020, had already created acute shortage of HCl but during Q1 2021, devastating winter storms disrupted all the production activities again. Winter storm led major plants to go for force majeures in mid-February like Olin Corporation’s freeport Texas units. Similarly, several other HCl and feedstock chemical plants shut down due to this rare climate calamity, leading to rise in average FOB prices by more than 30% within the quarter, which settled down at USD 420 per MT during March 2021.
Asia
The Asian HCl market showed mixed sentiments during the quarter. Lunar holidays in China reduced the inventory levels of major Chinese manufacturers, hence the prices followed an upward trend during Q1 2021. FOB prices for China rose from USD 245 per MT to USD 280 per MT from January to March. While in the Indian market, an opposite price trend was observed, where the average price of HCl (33% grade) dwindle by 10% due to ample stock availability and reduced demand from downstream sector.
Europe
Demand for HCl from the downstream sectors marked a downtrend during Q1 2021. One of the key reasons was lower downstream consumption amid rising in COVID 19 cases across the region. There was slight rise in demand from the steel manufacturing sector due to marginal sectoral improvement across the region, which was too backed by the government policies. Thus, the prices faced marginal loss during this time space, like FOB prices for HCl in Germany were observed to reduce from USD 115 per MT to USD 113 per MT from January to March 2021.
For the Quarter Ending September 2020
North America
Supply of HCl fell substantially in Q3 2020 in the Americas as manufacturers reduced production rates due to a major slump in demand of other Chlor-Alkali products. During the quarter ending September, acid demand from the oil and gas industries was pressured due to restricted use in the applications of hydraulic and fracturing process as the auto industry slowly began to revive from the pandemic blows. HCl contracts registered marked QoQ fall, weighed under the limited requirement of the car fuel and undue delays in the start of steel industries after coronavirus-led restrictions and seasonal storms triggered trade disruptions.
Europe
The European region encountered HCl supply shortage in Q3 2020 due to disintegration of upstream isocyanate facilities across several locations. Offers were raised after Covestro and BASF declared shutdowns at their isocyanate facilities in August. Demand patterns, especially in Iberia were not too high amid limited sectoral offtakes from the metalworking and automobile industries. Consumption by the downstream industries such as water purification also remained weaker because the tourism industry was facing dents induced by the travel restrictions. The NWE (northwest Europe) Hydrochloric Acid prices registered 10 per cent increment on month-on-month basis extending gains due to production issues, a market source revealed.
