According to the Commodity Analysis System of Business Society, the domestic hydrochloric acid market prices dropped significantly in January. The price of hydrochloric acid decreased from 112.50 yuan/ton at the beginning of the month to 92.50 yuan/ton at the end of the month, a decrease of 17.78%, and the price at the end of the month decreased by 39.94% year-on-year.

On January 31, the hydrochloric acid commodity index was 24.34, unchanged from yesterday, a decrease of 82.35% from the highest point in the cycle of 137.89 points (2021-10-26), and an increase of 35.37% from the lowest point of 17.98 points on September 5, 2012. (Note: The cycle refers to the period from September 1st, 2011 to present)

From the supply side, domestic hydrochloric acid factory prices have fluctuated this month, and manufacturers have limited inventory.

Cost side: The price of liquid chlorine has significantly increased

From a cost perspective, the upstream liquid chlorine market for hydrochloric acid saw a significant increase in January, with an overall increase of 100 yuan/ton. Cost support is good.

Demand side: Downstream demand weakens

From the perspective of downstream demand, the liquid ammonia and alternative support for ammonium chloride raw materials have weakened, coupled with continued loose supply and difficulty in significantly increasing demand in the short term. In January, the ammonium chloride market fell sharply, with market prices dropping from 662.50 yuan/ton at the beginning of the month to 627.50 yuan/ton at the end of the month, a decrease of 5.28%, and a year-on-year decrease of 46.27% at the end of the month. The downstream market situation has significantly declined, and downstream manufacturers have weakened their enthusiasm for purchasing hydrochloric acid.

Looking at the future: In mid to early February, the hydrochloric acid market may experience slight fluctuations and declines. The upstream liquid chlorine price has significantly increased, with good cost support. However, the downstream ammonium chloride market has experienced a significant decline, and downstream purchasing enthusiasm has weakened. Analysts from Business Society believe that the recent market for hydrochloric acid may experience a slight fluctuation and decline.