The Hydrochloric Acid (HCl) market exhibited varied price movements across different regions in January 2025, influenced by supply-demand dynamics, seasonal factors, and fluctuating feedstock costs. While HCl prices remained stable in the European market, North America and the Middle East & Africa (MEA) saw an upward trend. Meanwhile, Asia-Pacific (APAC) followed a mixed price trajectory.

In the European market, HCl prices remained steady due to unchanged demand conditions. Procurement levels from downstream industries were moderate following the holiday period in early January. Additionally, supply constraints in parts of Europe, particularly France, contributed to the market stability.

HCl availability remained tight in Northwest Europe amid reports of an unconfirmed outage and last year’s strike at Vencorex’s Pont de Claix facility in France. Although the strikes ended, supply improvements were yet to be observed. The tight supply situation was further compounded by a reduction in European chlor-alkali production in December 2024, as reported by EuroChlor. European chlorine production declined by 1.7% from November, impacting HCl production costs and overall supply levels.

Adding to the complexity, hundreds of workers from the chemical, automotive, and retail industries protested in Paris on January 22, demanding government intervention against mass layoffs. Employees from Arkema and its supplier Vencorex, alongside Auchan and Michelin workers, voiced concerns over job security. The upcoming ruling by the Lyon commercial court on Vencorex’s potential takeover by a Chinese competitor heightened market uncertainty. Unions advocated for temporary nationalization to preserve industrial jobs and prevent further economic fallout.

Contrary to Europe, the North American HCl market witnessed a notable increase, with US prices rising by 7.06% in January. The price surge was driven by elevated production costs and tight supply conditions. Since the US market heavily relies on Canadian imports, tariff tensions under the Trump administration further complicated trade relations, creating supply concerns and driving up prices.

HCl prices in the MEA region also recorded an increase, largely due to supply constraints following maintenance shutdowns in the previous month. Additionally, stocking activities ahead of Ramadan provided further upward momentum to the market. In Saudi Arabia, HCl prices rose by 2.08% in January 2025 as local buyers and neighboring countries accelerated their purchasing activity to build inventories.

The APAC market displayed mixed trends in HCl pricing. Japan recorded a 4.32% increase, supported by strong stocking activities from both domestic buyers and neighboring importers, particularly South Korea.

Conversely, the Chinese HCl market experienced a declining trend throughout the month, characterized by weekly price fluctuations. Stable feedstock costs, weak demand, and reduced market activity ahead of the Lunar New Year holidays were the primary factors influencing this downward trajectory.