According to the Commodity Market Analysis System of Business Society, the market of polyaluminum chloride continued to fluctuate and decline slightly in mid May. Among them, on May 1st, China’s solid (industrial grade, content ≥ 28%) polyaluminum chloride market reported 1800 yuan/ton, and on May 15th, the market reported 1781 yuan/ton, a half month decline of 1.04%.

As shown in the figure, the domestic market of polyaluminum chloride has been declining for several consecutive weeks since February. The weekly decline in April has occasionally expanded, and the decline in the first half of May has slightly contracted. The market has remained stable in mid May. The production of water treatment enterprises in China’s main production areas is normal, with sufficient spot inventory, unfavorable downstream procurement demand, tepid industry, and little change in the market for polyaluminum chloride.

Raw Material Hydrochloric Acid: According to the Commodity Market Analysis System of Business Society, the domestic hydrochloric acid market fluctuated from around 195 yuan/ton in mid May to around 175 yuan/ton, with a drop of up to 10.26%. The upstream liquid chlorine market is consolidating at a low level, with insufficient cost support. The downstream polyaluminum chloride and ammonium chloride markets are consolidating at a low level, and downstream purchasing willingness is weak. Analysis suggests that hydrochloric acid has been experiencing minor fluctuations and declines in recent times.

Liquefied natural gas for production. According to the Commodity Market Analysis System of Business Society, the domestic liquefied natural gas prices continued to fluctuate and decline in mid May. Among them, the average price of liquefied natural gas in China on May 11th was 3988 yuan/ton, and on May 20th it was 3858 yuan/ton, a decrease of 3.26% this month. The domestic liquefied natural gas market continues to weaken, and demand continues to be weak. On Friday, the bidding price of raw gas was lowered, and cost support weakened. It is expected that the domestic liquefied natural gas prices will continue to decline in the short term.

Future forecast: In mid May, the market for raw material hydrochloric acid and fuel liquefied natural gas continued to decline, with weak cost support. Recently, production in the main production areas has been normal, with sufficient market stock, and downstream demand has been weak. The situation of oversupply continues. Regarding the future market, the polyaluminum chloride market will continue to stabilize and weaken.