Liquid chlorine market is expected to drop steadily
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First of all, the weather vane in Shandong and Hebei market. Shandong and Hebei are the major consumer markets for liquid chlorine in the country. Their price tends to lead the national liquid chlorine market. The Shandong and Hebei markets have stopped rising and falling, inevitably affecting liquid chlorine in other regions.
Secondly, the liquid chlorine market has reached a high level and the market mentality has changed. Market mentality tends to chase high psychology, but the rise of liquid chlorine prices is not short, and the price has also reached a relatively high level. The current market price is the highest level since the second half of 2005. Therefore, the market buying mentality of rallies has gradually shifted to a cautious and cautious direction.
Again, the liquid chlorine market has already gone out of season. The consumption season of liquid chlorine is from March to May every year, and from September to October is the peak season of consumption. Now that the peak season has passed, coupled with the rapid increase in the price of liquid chlorine, the cost of downstream methane chloride, chloroacetic acid, chlorinated paraffin, and other industries has increased significantly. The profit margin has been reduced, and its downstream purchasing enthusiasm has declined. Demand has shrunk significantly. In addition, with the increase in energy conservation, emission reduction, and environmental protection, there are also quite a few chlorine processing companies operating at a reduced rate, which also affects the demand for liquid chlorine.
Lastly, the elevation of alkali chloride is not a normal condition and it is difficult to last. Chlorine and alkali mutual products, the two in accordance with the ratio of 1:1.13 output, both prices are generally rising. In this round of market, there has been a rare case of soda chloride soaring. This situation is not a normal attitude and cannot be continued. At present, the strong characteristics of caustic soda market are obvious, so the possibility of liquid chlorine weakening is relatively large.
However, the current lack of chlor-alkali start-up caused by domestic energy-saving emission reduction policies has not been significantly alleviated, and the total supply of liquid chlorine in the market is still low. Moreover, the recent increase in the cost of motor transport has raised the price of liquid chlorine accordingly, so the possibility of a full and rapid drop of the liquid chlorine market is unlikely. The overall market will continue to stably operate, but it does not rule out that some regions will be lower.