Hydrochloric Acid Prices Show Mixed Trends Globally in November 2024 Amid Regional Variations

Hydrochloric Acid (HCl) prices displayed a mixed trend across global markets in November 2024, reflecting diverse regional dynamics.

In Europe, the HCl market showed a balanced price trend, particularly in Germany, where prices remained stable at USD 156/MT FOB Hamburg. This stability stemmed from limited demand, favorable production costs, and optimized operation rates. Despite increased chlor-alkali production to meet downstream consumption, HCl demand from the steel manufacturing industry stayed subdued due to weak demand from the automobile sector. Data from the Germany Federal Motor Vehicle Office (KBA) revealed a 0.5% decline in new passenger car registrations in November 2024 compared to the previous year. Moreover, total vehicle sales for the year’s first eleven months fell by 0.4%, further dampening the demand for HCl.

In the US market, HCl prices rose significantly by 3.0% in November, driven primarily by surging production costs. Liquid chlorine prices spiked, influenced by tariffs imposed by the newly elected President on imports from Canada, Mexico, and BRICS nations. However, downstream demand for HCl from the steel manufacturing industry remained subdued. Steel prices witnessed a slight decline, reflecting limited consumption, particularly in the sluggish automotive sector, which showed weak performance during the month.

APAC region demonstrated a bullish trend in HCl prices, with key markets like China and Japan leading the charge. In Japan, HCl prices increased by 1.5%, primarily due to higher production costs, despite limited demand in downstream markets.

Meanwhile, China experienced a remarkable 7.6% rise in HCl contract prices, fueled by escalating feedstock costs. Liquid chlorine prices surged by 6% during November, driving up production costs. Supply levels remained ample, supported by an optimistic manufacturing environment. Data from NBS China indicated a rise in the PMI to 50.3 in November, up from 50.1 in October 2024, signaling improved manufacturing activity and higher operational rates for HCl.

Demand for HCl in China was robust, particularly from the downstream steel manufacturing sector. NBS data showed crude steel output rising by 5.87% month-on-month in October, with the trend likely extending into November. Furthermore, China’s steel exports from January to November 2024 reached 101.15 million tons, a 22.6% increase compared to the same period in 2023 and 12% higher than last year’s total of 90.26 million tons, according to the China Steel Association (CISA).

In the Middle East region, HCl prices took a downward turn, particularly in Saudi Arabia, where they fell by 8.8%, reaching USD 93/MT Ex-Riyadh. This decline was largely attributed to abundant inventory levels and weak demand from the downstream steel manufacturing sector. According to the World Steel Organization, Saudi Arabia's crude steel production decreased by 2.4% in October, further contributing to the dip in HCl demand and prices.