Price Trend

In August 2019, the price of sulphuric acid Market in Shandong fell sharply. The quotation fell from 225.00 yuan/ton on August 1 to 215.00 yuan/ton on August 31, falling by 10 yuan/ton, or 4.44%. Overall, the sulphuric acid Market in Shandong fell in August, 53.01% lower than the same period last year, and the sulphuric acid commodity index was 35.80% on August 31.

II. Market Analysis

(1) Products:

This month, the prices of some sulphuric acid factories in Shandong fell, with fewer inventories and fewer downstream demand. The price of Heze Jiangyuan sulphuric acid fell from 220 yuan/ton at the beginning of the month to 180 yuan/ton at the end of the month, and the price fell by 40 yuan/ton; Zouping Tianlu sulphuric acid price was 60 yuan/ton, which was temporarily stable; Jinan Yuanfei price was 450 yuan/ton, which was temporarily stable.

(2) Industrial chain:

The domestic sulphur market fell this month, with a large decline, which had a negative impact on sulphuric acid. The quotation fell from 860.00 yuan/ton at the beginning of the month to 693.33 yuan/ton at the end of the month, down 19.38%, 43.01% year-on-year compared with the same period last year. The price of bromine in the downstream market fluctuated little, but the turnover was light, the new single transaction was not satisfactory and the trading atmosphere was not good. Good, the diammonium market is low and consolidated. Sulphuric acid enterprises have many early orders. Short-term start-up is insufficient and supply is slightly tight. This month, domestic sulphuric acid plants run smoothly, market supply is relatively tight, downstream gas purchases are general, market transactions are limited, and with the National Day approaching, downstream manufacturers began to stop production.

(3) Industry:

In August 2019, there were 37 commodities on the rise and fall list of commodity prices in the chemical sector, of which 15 commodities increased by more than 5% accounted for 17.9% of the monitored commodities in the sector; the first three commodities were hydrogen peroxide (39.93%), acetic acid (20.90%) and butadiene (14.47%).

There are 39 kinds of products with a decline of more than 5%, accounting for 15.5% of the monitored products in this sector. The products with the first three declines are yellow phosphorus (-27.58%), epichlorohydrin (-23.28%) and sulfur (-19.38%).

This month’s average rise and fall was 0.03%. Overall, the sulfur market has fallen considerably, which has a negative impact on sulfuric acid demand.

3. Future Market Forecast

After the adjustment in August, the capital reflux of each factory is in good condition, the equipment has been repaired and the production capacity has increased. Supply is relatively slow, downstream purchasing is general, and products go down under the contradiction between supply and demand. Business sulfuric acid analysts believe that the short-term market in Shandong Province, supported by supply and demand and raw materials and other factors, the sulfuric acid market tends to decline.