Introduction: Hydrochloric acid is an aqueous solution of hydrogen chloride (HCl), which is an inorganic compound with the chemical formula HCl. It is generated by the reaction of chlorine and hydrogen gas, and is an important chemical raw material and reagent. It is a colorless and transparent liquid with an irritating odor. The upstream of the hydrochloric acid industry chain mainly includes liquid chlorine, raw salt, etc; Widely used downstream, mainly in industries such as chemical raw materials, pharmaceuticals, metallurgy, food, printing and dyeing. It is a raw material for manufacturing chlorides such as ammonium chloride, polyaluminum chloride, calcium chloride, barium chloride, and ferric chloride.

The domestic hydrochloric acid market will experience broad fluctuations in 2023

According to the Commodity Market Analysis System of Business Society, the domestic hydrochloric acid market will experience a wide range of fluctuations in 2023. The average price at the beginning of the year was 174 yuan/ton, and the average price at the end of the year was 112.50 yuan/ton, with a year-on-year decline of 35.34%. From the trend chart of hydrochloric acid prices, it can be seen that the highest price of hydrochloric acid in 2023 was 207 yuan/ton at the end of April, and the lowest price was 95 yuan/ton in early December, with a maximum annual decline of 54.11%.

From the monthly K-bar chart, it can be seen that in 2023, the price of hydrochloric acid has fallen more than risen, and the market trend is showing a wide range of fluctuations. The highest increase was 19.28% in March, and the highest decrease was 15.46% in May. In January, the trend of low consolidation at the end of 2022 continued, with average support for raw material costs and basically unchanged prices of hydrochloric acid. At the end of the month, the downstream market for polyaluminum chloride was weak, with insufficient demand, resulting in a downward trend in hydrochloric acid prices. In February, supported by the sharp rise in raw material liquid chlorine, the price of hydrochloric acid began to rise step by step, rising to around 207 yuan/ton in early May, with an increase of up to 34.42%. Subsequently, the prices of raw materials fell and stabilized, and downstream rigid demand procurement mainly followed the market trend. Hydrochloric acid operates in a narrow range with a price of around 173 yuan/ton. In early December, upstream liquid chlorine prices plummeted. According to data statistics, the price of liquid chlorine has plummeted from 350 yuan/ton to 100 yuan/ton, a decrease of 71.43%. Due to insufficient support, hydrochloric acid plummeted by 24% and subsequently operated at a low level.

How will the hydrochloric acid market develop in 2024?

From the perspective of production capacity and output: According to data, China’s hydrochloric acid production in 2022 was approximately 8.2135 million tons, a year-on-year increase of 2.4%. The East China region is one of the main regions for hydrochloric acid production in China. Among them, Jiangsu Province is one of the important bases for hydrochloric acid production in China, with hydrochloric acid production ranking first in the country. In 2024, with the strengthening of environmental protection policies, some hydrochloric acid production enterprises may be forced to stop or reduce production, and hydrochloric acid production may decrease.

From the perspective of market demand, the demand for hydrochloric acid in China’s market in 2022 is about 8.21 million tons, a year-on-year increase of 2.4%. Due to changes in downstream demand, the market size of China’s hydrochloric acid industry has experienced significant fluctuations in recent years. The market size of China’s hydrochloric acid industry decreased from 2017 to 2019, and began to recover from 2020 to 2021. As of 2022, the market size of China’s hydrochloric acid industry is approximately 1.935 billion yuan. In 2024, the demand for hydrochloric acid in automobiles, electronics, pharmaceuticals, and wastewater treatment will continue to expand, and the demand for hydrochloric acid will further increase in 2024.

From the perspective of imports and exports: According to customs data, the import volume of China’s hydrochloric acid industry was on the rise from 2015 to 2016, and the import volume exceeded the export volume. However, since 2017, the export volume of China’s hydrochloric acid industry has exceeded the import volume. From January to November 2023, the import volume of China’s hydrochloric acid industry was 5500 tons, and the export volume was 18200 tons. The export volume is expected to further increase in 2024.

In the future, with the development of China’s semiconductor industry, the localization of electronic grade hydrochloric acid is fully underway, and the market size of hydrochloric acid may further increase in 2024.