According to the commodity market analysis system of the business agency, the market of Aluminium chlorohydrate fluctuated slightly in July. On January 1, China’s solid (industrial grade, content ≥ 28%) Aluminium chlorohydrate market mainly reported about 1721 yuan/ton, and on December 31, the market mainly reported about 1718 yuan/ton, with a monthly decline of 0.15%; The highest price point for this month was 1725 yuan/ton on July 13th, and the lowest price was 1712 yuan/ton on July 10th, with a maximum amplitude of 0.73%. Recently, water treatment enterprises in China’s main production areas have had normal production, sufficient market inventory, and little improvement in downstream procurement demand, making it difficult to make actual transactions; The price of raw hydrochloric acid changed slightly this month. The periodic rise of hydrochloric acid in Henan, the main production area, led to a slight rise in the market of Aluminium chlorohydrate, but the duration was short. The monthly market of Aluminium chlorohydrate did not rise continuously.

As shown in the figure, at the beginning of the third quarter of 2023, the domestic market of Aluminium chlorohydrate showed a slight upward trend in July, especially in the first ten days of the year, but the market support in the middle and last ten days was weak and fell back near the mainstream price at the end of last month.

Raw Material Hydrochloric Acid: According to the Commodity Market Analysis System of Business Society, the domestic hydrochloric acid market price first rose and then fell in July, with the price rising from 173 yuan/ton to 179 yuan/ton, and then falling again to around 173.6 yuan/ton. In the middle of the year, the price rise of hydrochloric acid in Henan, the main production area of water treatment in China, led to an increase in the market of Aluminium chlorohydrate. After all, the demand did not follow up significantly. In the later period, the price of hydrochloric acid fell, and the market of Aluminium chlorohydrate fell. The upstream support and downstream procurement willingness for hydrochloric acid are weak, and it is expected that the hydrochloric acid market may fluctuate slightly in mid to early August.

Liquefied natural gas for production. According to the Commodity Market Analysis System of the Business Society, the domestic liquefied natural gas market fluctuated and fell in July: as of July 31st, the average price of liquefied natural gas in China was 3678 yuan/ton, a significant drop of 14.39% compared to the average price of 4296 yuan/ton on July 1st. Due to market inventory exclusion and poor demand during the off-season, there is currently no positive factor supporting liquefied natural gas. There is a strong bearish sentiment in the industry, and liquid plants are often reducing prices. It is expected that domestic prices will be weak in the short term, and it is recommended to pay attention to the bidding results of raw gas.

Future forecast: The rising price of raw hydrochloric acid in this month has led to a slight increase in Aluminium chlorohydrate, but the market of fuel liquefied natural gas has fallen sharply, and Aluminium chlorohydrate has unstable support. On the supply side, China’s Aluminium chlorohydrate manufacturers are in normal production and have sufficient inventory; However, there has been no significant improvement on the demand side. As for the future market, the analysis believes that the Aluminium chlorohydrate market is expected to be mainly stable, supplemented by small shocks.