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The data shows that starting from the end of October, after a long period of pressure and downward shocks for common refrigerant products, some products with large losses have experienced substantial price increases. Analysis of the reasons for the price increase can be summarized into three points:
1. Refrigerant factories reduce production for a long time and keep the price, and the inventory is small;
2. The tight supply of raw materials and rising prices have restricted the increase in industry supply and increased cost pressure;
3. The trading atmosphere is no longer a unilateral buyer's market, and the shortage of supply is increasing.
Industry Online analysis believes that the continuous rise in prices of basic raw materials such as sulfuric acid, liquid chlorine, and calcium carbide is the fuse to break the previous weak balance.
>> Sulfuric acid
As an upstream product of hydrofluoric acid, the basic raw material of fluorine chemical industry, sulfuric acid has continued to increase its price sharply since August. According to industry online statistics, as of November, the average monthly price of sulfuric acid in East China was 270 yuan/ton, a month-on-month increase of 16.76% and a year-on-year increase of 74.19%.
At the beginning of the year, due to the impact of the new crown epidemic, the sulphuric acid market was lagging, and most acid plants sold at low prices, and acid price profits once appeared inverted. Entering August and September, the downstream sulfuric acid phosphate fertilizer market entered the peak season for autumn reserves, and the export of phosphate fertilizer and downstream demand improved, which boosted the demand for sulfuric acid more. The upstream sulfur market of sulfuric acid mainly relies on imports. The overseas epidemic continues to reduce sulfur imports. The shrinkage of raw materials has led to abnormal production of acid companies and increased parking, resulting in low supply in the acid market.
On the whole, the supply of sulphuric acid market has decreased and demand has increased. In addition, the sulphuric acid market has fallen more in the previous period. After entering the peak season, practitioners have a strong attitude to push up. All aspects are good to support the rise of sulphuric acid prices.
>> Liquid Chlorine
As the raw material of methane chloride, the price of liquid chlorine has also risen, which has increased significantly compared with the same period last year. On the one hand, the price of liquid chlorine is affected by frequent fluctuations in supply. During the shutdown and maintenance period of the main equipment, the supply of liquid chlorine in the liquid chlorine market is tight, and the price rapidly rises. The equipment resumes production, and the price drops again; on the other hand, the main downstream products of liquid chlorine such as epoxy Propane, PVC, etc. have made good profits this year, which is a good support for the liquid chlorine market on the demand side.
At the same time, the continued high price of liquid chlorine will also lead to losses in part of the downstream chlorine consumption, which will reduce the load and reduce the demand. This will increase the inventory of the main manufacturers of liquid chlorine. Therefore, in the long run, the high price of liquid chlorine will last for a limited time, and the market will continue Mainly show periodic narrow fluctuation operation.
>> Calcium carbide
The price of calcium carbide has also risen to a high level recently. As of the third week of November, the price of calcium carbide in Wuhai has risen to 3,350 yuan/ton, far exceeding the level of the same period last year. Since the beginning of this year, inspections for the transportation of hazardous chemicals have become stricter, and the regional arrivals of calcium carbide are generally uneven. Recently, Wuhai and Wumeng areas have continued to curtail power, and Ningxia has also successively restricted power and energy-saving and emission reduction inspections. Some enterprises have reduced their loads. Production, the overall supply of calcium carbide market is tight.
The downstream PVC industry of calcium carbide is profitable. In addition, the recent restoration of the calcium carbide process in some areas by PVC companies has led to an increase in demand for calcium carbide, and the market structure in short supply has caused the price of calcium carbide to continue to rise.
Based on the above factors, the industry online forecasts that the high price of basic raw materials will continue to operate, which will obviously drive the cost of intermediate products and downstream products. Downstream factories are willing to increase prices due to rising cost pressures, and most products have risen to varying degrees. Under multiple market environments such as rising costs, shortage of raw materials, factories' own production cuts to insure prices, and steady and positive downstream demand, practitioners are becoming more bullish, and it is expected that prices of different products will rise to varying degrees.
Jiangsu Jincheng Air Conditioning Engineering Co., Ltd. focuses on:
Industrial air conditioners, chemical fiber industrial air conditioners, chemical fiber industrial refrigeration, textile industrial air conditioners, dust-free workshop refrigeration, ventilation ducts, cooling towers, refrigerators and other air conditioning units and accessories.
Jincheng can bring you high-quality industrial air-conditioning products and satisfying services.
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