According to the Commodity Market Analysis System of Shengyi Society, the February market for polyaluminum chloride in China’s solid (industrial grade, content ≥ 28%) market was mainly reported at around 1720 yuan/ton on the 28th and 1720 yuan/ton on the 1st, maintaining stability. The water treatment market in China’s main production areas has abundant supply, and downstream procurement is based on demand. The price of raw material hydrochloric acid has declined, the fuel market has declined, and the cost of polyaluminum chloride has decreased. During the off-season of demand before and after the Spring Festival, procurement for municipal/industrial projects slowed down and stocking decreased. In the early stage of resuming work after the holiday, the demand for goods gradually recovered, but the overall procurement volume was limited and mainly consisted of small orders.
Raw material hydrochloric acid: In February, the domestic hydrochloric acid market fell, and as of February 28th, the price of hydrochloric acid was at 75 yuan/ton.
Liquefied natural gas for production. The domestic liquefied natural gas market prices fell sharply in February. As of February 28th, the average price of liquefied natural gas was 3118 yuan/ton, a decrease of 13.63% from 3610 yuan/ton on February 1st. The liquefied natural gas market is showing an overall trend of oversupply.
Market forecast: The raw material hydrochloric acid market will decline in February, the fuel liquefied natural gas market will decline, and the cost of polyaluminum chloride will decrease. On the supply side, China has abundant inventory of polyaluminum chloride; On the demand side, downstream work resumed in March, and demand gradually rebounded; The supply increases with the increase of operating rate, and the supply-demand trend is weakly balanced. It is expected that the recent market trend of polyaluminum chloride will mainly consolidate.
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