In February 2024, Hydrochloric acid (HCl) market experienced a surge in the global market including USA and China. In USA, HCl market shifted upward in February 2024 with USD 3/MT while in Germany USD 2/MT. Concurrently other European nations follows the same trend as USA and German HCL market in first half of February 2024.

These inclinations are attributed to multiple factors affecting both upstream and downstream of HCl market. The one of the reasons behind the HCl price increase is the price increase of major feedstock i.e. Liquid Chlorine. Liquid Chlorine prices were heard to be rising in the US market in the first half of February 2024, with price increases around 4.44%. This price increment in upstream liquid chlorine supported the overall price increase of HCl as it affected the production costs. On the other hand, demand for the product from downstream industry has also improved during this timeframe, attributed to the increase in manufacturing activities as the official Purchasing Managers Index (PMI) showcased an incline in January 2024 in USA as well as in Europe.

In Germany the downstream steel (steel plate) industry, a significant consumer of HCl, increased by USD 14/MT in the first half of February 2024. Growth in the downstream demand coupled with the price surge in the upstream liquid chlorine led to the increase in market price for the HCl. The HCl price escalation in US and European market is directly attributed to the increase in the factory activities. China, a significant key player in the steel manufacturing industry has been facing lower demand for steel from the US and European markets embracing the logistics disruptions, increased freight charges and the imports related duties/policies. The supply demand imbalances amidst the shortage of import inventory from Chinese market, created a pressure on the domestic steel manufacturers to fulfil the demand of the domestic market. Concurrently, construction sector has taken surge in 2024 in US associated to the single-family housebuilding project and spending on private construction has raises 0.7% further declination in the mortgage, ultimately result to growth in construction sector. 

Moreover, the US and the European market HCl industry has been following the same trend since the November 2023, After the fall in HCl market in November, prices remained stable in January in USA and in most of the European countries including Germany, UK, France and Italy. Product Price is still on the same trend. 

As per the ChemAnalyst’s prediction, the price of HCl is likely to rise in the coming months. This projection is based on the anticipation of the increase in demand from downstream industries, increase in the infrastructure projects, construction activities, industrial development and fluctuation in energy sector could contribute more to difficulties.