For the Quarter Ending September 2024
North America
In Q3 2024, the North American Hydrochloric Acid (HCl) market experienced a notable rise in prices, particularly in the USA. Initially, the quarter saw robust demand, positively influencing market prices. However, as the quarter progressed, several key factors began to impact pricing dynamics. Production disruptions and supply chain challenges, primarily due to hurricanes, resulted in significantly low inventory levels, which in turn prompted price increases. Port Congestion and shutdowns at critical manufacturing facilities hindered the flow of goods to the market.
Additionally, the downstream demand, especially from the steel sector, remained subdued, creating a limited demand environment characterized by moderate to low activity. When comparing prices, HCl experienced a 1% increase from the previous quarter. Furthermore, year-on-year, prices surged by 17%, indicating a strong upward trajectory.
By the end of the quarter, Hydrochloric Acid was priced at USD 160/MT Ex-Works USGC, highlighting the persistent upward pricing trend in the region. This trend underscores the challenges faced by the market in navigating supply disruptions while addressing fluctuating demand levels.
APAC
In Q3 2024, the APAC region saw a significant decline in Hydrochloric Acid (HCl) prices, primarily due to weak demand from downstream steel manufacturing industries and a sluggish construction sector. However, key sectors such as textiles, metal processing, and water treatment, which typically rely on HCl, reported moderate consumption levels. This dip in demand in major industries contributed to bearish market sentiment, where expectations for recovery diminished. Concurrently, chlor-alkali production in the region remained robust, leading to an oversupply of HCl. High production rates ensured that inventory levels were ample, further intensifying the downward pressure on prices. Producers faced the challenge of balancing supply with the weakened demand; consequently, many were compelled to lower prices to stimulate sales. China emerged as a notable player in this trend, experiencing a substantial price decline of 13.5% compared to the previous quarter. This drop highlighted the regional impact of diminished consumption coupled with excessive inventory. As a result, the overall pricing trajectory for HCl reflected a consistent downward trend.
Europe
In Q3 2024, the Hydrochloric Acid (HCl) market in Europe exhibited a mixed pricing trend. During the initial months of the quarter, prices remained elevated, primarily due to strong demand from downstream sectors. However, limited availability of feedstock chlorine necessitated adjustments in manufacturing processes, resulting in increased production costs. Additionally, production disruptions, including plant shutdowns in certain regions, further altered the supply dynamics. As the quarter progressed into its middle weeks, a noticeable decline in prices began. This downturn was largely influenced by a slowdown in industrial production across the EU and eurozone, which adversely affected the demand for HCl. Notably, France experienced significant price fluctuations, with prices rising by 15% compared to the previous quarter. When compared to the same quarter from the previous year, prices in France surged by 34%. By the end of the quarter, the price for HCl in France reached USD 184/MT CFR Le Havre, underscoring the overall fluctuating pricing sentiment and the complex interplay of supply and demand factors in the region.
MEA
In Q3 2024, the Middle East and Africa (MEA) region saw a significant rise in Hydrochloric Acid (HCl) prices, influenced by several critical factors. Strong demand from downstream industries, particularly in steel and construction, played a crucial role in driving prices higher. This surge in demand was bolstered by favorable economic indicators, including increased steel production and a robust pipeline of construction projects, which collectively fostered bullish market sentiment. In Saudi Arabia, the market experienced the most pronounced price shifts, with a notable 9% increase compared to the previous quarter. This price surge can be attributed to heightened demand from the steel sector and increased industrial activity. Despite encountering challenges such as labor shortages and fluctuating shipping costs, the overall pricing environment remained optimistic. However, when comparing this quarter to the same period last year, the price change was modest at just 0.7%. The quarter concluded with HCl priced at USD 100/MT Ex-Riyadh, reinforcing the upward pricing trend observed throughout Q3 2024 and indicating a resilient market despite existing challenges.
South America
In Q3 2024, the South American region experienced a notable increase in Hydrochloric Acid prices, particularly in Brazil, where the most significant price fluctuations occurred. The market dynamics were heavily influenced by supply disruptions, including operational halts caused by severe weather events such as flooding, which resulted in low inventory levels and logistical challenges. These supply constraints, combined with strong demand from key industries like steel manufacturing, drove prices higher. The interplay between diminished supply and robust demand fostered a bullish pricing environment, reflecting positive market sentiment. In Brazil, Hydrochloric Acid prices rose steadily throughout the quarter, indicating a consistent upward trend. The quarter saw a 1% increase compared to the previous quarter, with the latter half of Q3 performing better than the first half, suggesting strengthening market conditions. Year-on-year comparisons revealed a significant 17% rise in prices. The quarter concluded with Hydrochloric Acid priced at USD 211/MT Ex-Works Cubatão, highlighting a substantial increase from the same period last year.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Hydrochloric Acid market witnessed a substantial price rise, driven by several key factors. Firstly, robust demand from diverse sectors such as steel production, water treatment, and agriculture exerted pressure on supply, pushing prices upwards. Furthermore, production costs for Hydrochloric Acid escalated during this period. Increased prices of raw materials like liquid chlorine, influenced by elevated energy costs and supplier fees, translated into higher production expenses passed on to consumers, thereby contributing to the overall price surge.
Additionally, seasonal variations played a role in the price hike. Q2 typically sees heightened demand for Hydrochloric Acid, driven by increased construction and manufacturing activities, further bolstering prices during this period. Specifically in the USA, the price hike was notably pronounced. Market data indicated a 13% increase from the previous quarter in 2024 and a substantial 22% rise compared to the same quarter the previous year.
In summary, the pricing landscape for Hydrochloric Acid in North America during Q2 2024 was characterized by a positive trend marked by rising prices, fueled by strong demand, increased production costs, and seasonal demand patterns. The quarter concluded with Hydrochloric Acid 35-37% Ex-Works USGC in the USA recorded at USD 168/MT.
Europe
During the second quarter of 2024, the Hydrochloric Acid market in Europe saw a notable rise in prices. This upward movement was influenced by several factors, including heightened production costs, robust demand from downstream sectors, and inflationary pressures. The quarter recorded an overall price increase of 13%, with Germany experiencing the most significant changes in pricing. Specific year-over-year comparisons were not detailed. Moreover, there was an observed 8% price differential between the first and second halves of the quarter, indicating a consistent upward trajectory.
Elevated production costs, particularly for feedstock, played a pivotal role in driving prices upwards. This was driven by increased costs of raw materials and higher transportation expenses. Strong demand from downstream industries, particularly the steel sector, further bolstered the price surge. Inflationary pressures within the Eurozone, evidenced by rising consumer prices, also contributed to the overall upward trend in pricing.
By the end of the quarter, the price for Hydrochloric Acid 33% - 37% FOB Hamburg in Germany was noted at USD 138/MT. Overall, the pricing landscape for Hydrochloric Acid in Europe during Q2 2024 demonstrated positivity, characterized by steadily increasing prices influenced by various market dynamics and cost factors.
APAC
In the second quarter of 2024, there has been a notable price increase for Hydrochloric Acid (HCl) in the APAC region. Several factors have influenced these price dynamics, contributing to a generally favorable pricing environment. A significant driver has been strong demand from downstream industries, particularly the steel manufacturing sector, which has exerted upward pressure on prices as manufacturers strive to meet market demand. Additionally, improvements in the construction industry have further bolstered HCl demand.
Another contributing factor to the price rise has been the escalation in feedstock costs, such as liquid chlorine, a crucial component in HCl production. These increased input expenses have been passed on to consumers, resulting in higher chemical prices. Furthermore, supply constraints have played a role in the price surge. Despite efforts to increase production, manufacturers have struggled to keep pace with robust demand, leading to tightened supply conditions and further driving up prices.
Overall, the pricing environment for HCl in the APAC region during Q2 2024 has shown steady increases throughout the quarter. In Japan specifically, prices have experienced the most significant changes, reflecting broader regional trends. Compared to the same quarter last year, prices have seen a substantial percentage increase, indicating significant growth year-over-year. Moreover, compared to the previous quarter in 2024, prices have risen by 7%, highlighting a continuous upward trend. As Q2 draws to a close, the latest price for HCl in Japan stands at USD 128/MT of Hydrochloric Acid 33% - FOB Tokyo, underscoring the overall upward price movement observed throughout the quarter.
MEA
During Q2 2024, the Hydrochloric Acid (HCl) market in the Middle East and Africa (MEA) region saw a substantial rise in prices, driven by several key factors. Primarily, disruptions in ocean shipments and port congestion in Asian ports elevated export prices for HCl. Concurrently, high prices of feedstock Liquid Chlorine further bolstered production costs. Moreover, heightened demand from sectors like steel manufacturing and disinfectant production contributed significantly to the price upswing.
Among MEA nations, the United Arab Emirates (UAE) experienced the most notable price increases during the quarter. The UAE market exhibited a positive trend with prices climbing 6% from the first half of the quarter, driven by robust demand from the cleaning and steel industries. Economic expansion and increased developmental expenditures in the UAE also played pivotal roles in driving up HCl prices.
The second quarter typically witnesses heightened economic activities and demand, influencing the price surge. Compared to the same quarter last year, prices showed substantial growth, indicating a favorable pricing environment for HCl. The quarter-ending price for HCl in the UAE stood at USD 97/MT CFR Jebel Ali, underscoring the prevailing market sentiment of increasing demand and constrained supply dynamics in the region.
South America
In the second quarter of 2024, the Hydrochloric Acid market in South America saw a noticeable upward trend, marked by consistent price increases throughout the quarter. This rise was primarily driven by supply disruptions stemming from severe flooding in the region, which limited product availability. Furthermore, strong demand from downstream industries, particularly the steel sector, contributed significantly to the price hikes. Brazil's market dynamics played a pivotal role in driving these overall price increases, experiencing the most significant changes in the region.
The correlation between price movements in Brazil and across South America underscored a consistent pattern of rising prices, indicative of a favorable pricing environment. Despite challenges such as disruptions and plant shutdowns due to flooding in southern Brazil, the market demonstrated resilience, with prices showing a notable 12% increase compared to the previous quarter in 2024. A detailed comparison between the first and second halves of the quarter revealed a substantial 9% surge, culminating in a quarter-end price of USD 221/MT for Hydrochloric Acid 37% Ex-Works Cubatão in Brazil.
For the Quarter Ending March 2024
North America
In Q1 2024, North America experienced varied trends in Hydrochloric Acid (HCl) prices. January saw an overall stability in the US HCl prices against the rising demand from steel industries and exports, driven by stock export demand.
In February, the US market witnessed a bullish HCl trend influenced by upstream factors, notably the steep increase in Liquid Chlorine prices, a key raw material, by over 11%, driven by improved energy costs. However, downstream demand remained moderate, with minimal growth in the steel industry due to construction slowdowns and interest rate hikes.
In March, HCl prices stabilized amidst subdued domestic downstream demand, coinciding with a slight increase in inflation. Despite upstream caustic soda price surges, downstream steel industries experienced declines in imports and anticipated lower earnings due to reduced volumes and prices. While some relief in shipment freight occurred, issues at the Baltimore port persisted in the last phase of the quarter, posing challenges for East Coast shipments. However, prices showed a slight increase of 2% compared to the previous quarter of 2023.
APAC
In the first quarter of 2024, the Hydrochloric Acid market in the APAC region displayed a mixed price sentiment. Initially, the market encountered significant challenges. Various factors contributed to the fluctuations in market dynamics and pricing during this period. There was an initial decline in HCl demand, primarily stemming from a slowdown in several downstream industries. This slowdown was particularly evident in the steel manufacturing sector, where demand noticeably decreased. Additionally, the rising cost of feedstock chlorine added to production expenses, increasing pressure on prices. Moreover, disruptions in shipping routes worsened supply chain issues, leading to limited inventory availability across the region. Specifically, Japan saw notable fluctuations in HCl prices during this quarter, with prices decreasing by about 1.5% compared to the previous quarter. Overall, the APAC region's HCl market faced challenges including reduced demand, heightened production costs, and disruptions in the supply chain during the first quarter of 2024. Notably, Hydrochloric Acid prices In Japan declined by around 30% compared to the same quarter in the previous year, 2023.
Europe
In Q1 2024, the European region witnessed fluctuations in Hydrochloric Acid (HCl) prices. January saw stable HCl prices in Germany due to a mix of upstream and downstream factors, including reduced liquid chlorine supply and decreased demand from industries like steel and construction. The slight decrease in the Consumer Price Index (CPI) hinted at upcoming potential improvements in manufacturing activities. February saw a notable 10% surge in German HCl prices, driven by rising manufacturing costs, inflationary pressures, and logistical disruptions. Despite minimal growth in the steel industry, upstream caustic soda prices rose, adding to production costs. Additionally, geopolitical uncertainties and inflation concerns prompted companies like BASF to increase commodity prices. March continued the bullish trend in German HCl prices, rising by approximately 10%, influenced by future demand expectations and geopolitical tensions. Concurrently, upstream caustic soda prices increased, further elevating production costs. Conversely, the Steel sector experienced a decline due to subdued demand and reduced raw material costs, exacerbated by decreased construction activity. However, prices showed a slight increase of 4% compared to the previous quarter of 2023.
MEA
In Q1 2024, the pricing dynamics of Hydrochloric Acid (HCl) in the MEA region were shaped by an array of factors extending beyond the usual influences. Notably, Saudi Arabia's market situation stood out, playing a pivotal role in setting the overall trend. The HCl market in Saudi Arabia witnessed a substantial price surge compared to the same quarter last year, propelled by strong demand from the steel and construction sectors. This upward trajectory persisted from the last quarter of 2023, indicating robust demand amid tight supply conditions. However, the market encountered hurdles such as plant shutdowns, impacting HCl availability. As the quarter progressed, reduced working hours during Ramadan led to increased inventory levels amid decreased consumption. Moreover, the market's seasonality, with certain months experiencing heightened demand and price fluctuations, must be considered. Consequently, the projected final price for Hydrochloric Acid 33% Ex-Riyadh in Saudi Arabia for Q1 2024 stands at USD 80/MT, summarizing the complex interplay of various market dynamics during the period.
For the Quarter Ending December 2023
North America
In the North American region, the Hydrochloric Acid market experienced a significant price reduction in throughout the fourth quarter of 2023. This decline in prices was influenced by factors affecting both the production (upstream) and consumption (downstream) facets of the industry.
The upstream liquid chlorine market, essential for Hydrochloric Acid (HCl) production, observed a slight decrease without sufficient cost support, contributing to the overall dip in Hydrochloric Acid prices. Concurrently, downstream manufacturers faced a minor decrease in demand, coupled with weakened purchasing willingness. Additionally, Hydrochloric Acid manufacturers, dealing with substantial inventory levels, proactively lowered prices aggressively to attract new orders. This strategic approach, motivated by the necessity to manage existing inventory and stimulate market demand, had a considerable impact on the overall dynamics of the Hydrochloric Acid market in the United States throughout the quarter.
Furthermore, in November 2023, the US Manufacturing Purchasing Managers' Index (PMI) was officially confirmed at 49.4, representing the lowest level and indicating a renewed decline in operational circumstances within the manufacturing sector, primarily attributed to the impact of reduced new orders. The latest settled price for Hydrochloric Acid 35-37% was USD 133/MT Ex-Works USGC duringthe the quarter ending december 2023.
APAC
In the APAC region, the Hydrochloric Acid market witnessed downtrend in its prices throughout the fourth quarter of 2023. Firstly, there was a significant decrease in the Chinese Manufacturing Purchasing Managers Index (PMI), signaling a bearish market sentiment. The upstream liquid chlorine market, vital for Hydrochloric Acid production, experienced a slight decline without adequate cost support, contributing to an overall decrease in Hydrochloric Acid prices. Downstream manufacturers also faced a slight drop in demand and reduced willingness to make purchases. Concurrently, Hydrochloric Acid manufacturers initiated aggressive price reductions due to the accumulation of substantial inventory, aiming to attract new orders. Additionally, for a brief period in the quarter, the APAC market-maintained stability in its prices. The strategic decision of Japanese exporters to consciously uphold market stability played a crucial role in maintaining a steady environment. Prioritizing stability, Japanese exporters and traders aimed to protect profit margins, demonstrating a deliberate effort to navigate potential market fluctuations. Meanwhile, a significant decline in steel demand, a key construction material, resulted from reduced construction projects, further impacting the overall Hydrochloric Acid market. Ultimately, the price for Hydrochloric Acid dropped and settled at USD 115/MT FOB Tokyo in December 2023.
Europe
During the fourth quarter of 2023, the Hydrochloric Acid market in Europe experienced a performance that can be characterized as mixed. The market's dynamics were notably influenced by various factors affecting both pricing and demand throughout the quarter. Firstly, the region encountered a demand that ranged from moderate to low for Hydrochloric Acid, especially from the steel manufacturing sector. This was attributed to a slowdown in the construction industry and unfavorable market sentiments. Additionally, supply challenges emerged, with an oversupply condition prevailing in the region, resulting in a decline in prices. The subsequent stability in prices was linked to subdued demand from downstream industries and a reduction in cost support from the upstream Chlorine market. Manufacturers strategically chose to prioritize market stability, aiming to safeguard their profit margins. Towards the end of the quarter, however, the market experienced a slight decrease influenced by factors like year-end discounts, potential reductions in production activity, and an overall decline in inventory levels. In summary, the Hydrochloric Acid market in Europe faced challenges in Q4 2023, primarily due to subdued demand, oversupply conditions, and a slowdown in the construction sector. The price for Hydrochloric Acid 33%-37% FOB Hamburg in Germany for the quarter was reported at USD 99/MT during December 2023.
Middle East
Throughout the fourth quarter of 2023, the Hydrochloric Acid market in Saudi Arabia displayed substantial stable to declining trend, primarily driven by subdued demand from downstream industries. This stability was reinforced by a reduction in cost pressures originating from the upstream Chlorine market. Manufacturers in the region strategically opted to uphold market stability, playing a crucial role in creating a consistently steady environment. Simultaneously, the downturn in the Hydrochloric Acid market stemmed from a deceleration in the Saudi construction sector, witnessing a significant decline, particularly in housing projects. This slowdown in construction activities had a cascading impact on the steel market, resulting in decreased off-takes for Hydrochloric Acid by steel industries. Additionally, in November 2023, the Purchasing Managers' Index (PMI) for Riyad Bank in Saudi Arabia declined to 57.5 from 58.4 in the preceding month. This drop was attributed to slower increases in both staff and inventory, alongside a noticeable decrease in delivery times. In conclusion, the price for Hydrochloric Acid 33% experienced a decline in the last month of the quarter, hovering around USD 89/MT Ex-Riyadh.
For the Quarter Ending September 2023
North America
The Hydrochloric Acid market in the third quarter of 2023 displayed a mixed trend, with stability dominating the first part of the quarter. This stability was primarily due to modest demand from the household cleaning sector. However, the demand for Hydrochloric Acid from the steel industry, where it serves as a metal cleanser, was dampened by reduced consumption. Additionally, limited export orders further added downward pressure to the US steel market. Despite these factors, inventory levels remained constant during the month. Meanwhile, companies continued to reduce their backlog of work and deplete their stocks of finished products. However, the market eventually reversed its course in the second part of Q3, experiencing a slight increase in overall demand from downstream industries. Some businesses also mentioned that a shortage of drivers was impeding their efforts to shorten delivery times. Furthermore, production and supply in the US market experienced disruptions due to tight labor market conditions. Consequently, by the end of the quarter, there was a marginal rise in Hydrochloric Acid prices. This shift was further influenced by developments in the US construction industry, which continued to show notable growth in September. The Bureau of Labor Statistics (BLS) also reported a remarkable increase in construction jobs.
APAC
Throughout the third quarter of 2023, the South Korean Hydrochloric Acid market experienced price stability, primarily due to limited demand from downstream industries. During that period, construction activities were sluggish within the Korean market, and steel production had decreased. Furthermore, factory operations were on a prolonged downturn, with the Purchasing Managers Index (PMI) for South Korean manufacturers dropping in August, indicating a contraction in economic activity. However, the stable Hydrochloric Acid prices were partially offset by declining costs in the upstream Chlorine market, which helped counterbalance the challenges posed by weak demand. Consequently, manufacturers deliberately chose to maintain market stability while keeping a close eye on their profit margins. It's also worth noting that South Korea imports Hydrochloric Acid from Japan, and the availability of low-cost imported supply from Japan had an impact on the domestic market in Korea. Additionally, if the BOK (Bank of Korea) were to tighten its policy, it could exacerbate challenges in the construction industry and add complexities to the real estate market.
Europe
The Hydrochloric Acid market in Europe has encountered significant challenges due to a notable drop in demand from both the steel manufacturing sector and a decline in construction sector operations. The ongoing decline in construction activity across the eurozone has coincided with a substantial deterioration in customer demand. Among European countries, German construction firms have experienced the most rapid reduction in new projects, closely followed by France. Concurrently, export demand has also weakened, which can be attributed to European steel manufacturers scaling back their production due to high gas prices and subdued demand. Additionally, Eurostat's data for July 2023 shows a decrease in Germany's producers' price index. In the meantime, the construction industry, a major consumer of Hydrochloric Acid, has been grappling with adverse effects from microeconomic conditions, resulting in a sharp decline in residential building projects. To navigate this challenging environment, construction companies have adopted a cautious approach, including substantial reductions in employment levels and purchasing activities within the sector. However, by the end of the third quarter of 2023, the Hydrochloric Acid market saw a revival, driven by improved demand from downstream industries amid tight supply conditions. Furthermore, the Consumer Price Index (CPI) in the Euro Area also increased in September 2023.
South America
The South American market for Hydrochloric Acid followed a trend similar to that of the United States. In the first half of the quarter, Hydrochloric Acid prices were generally soft to stable, primarily due to a slight decrease in demand from the steel industry. This decline in demand was driven by a sustained and rapid decrease in new order intakes. Consequently, businesses reduced their purchasing activities and made downward adjustments to their workforce. The continuous drop in construction activity in South America, coupled with a significant worsening in customer demand, contributed to the subdued nature of the Hydrochloric Acid market. Despite these conditions, inventory levels remained unchanged during the month. However, in the second half of the quarter, Hydrochloric Acid prices began to rise. This increase was attributed to a slight uptick in new orders and a resumption of production growth. The Purchasing Managers Index (PMI) in Brazil also showed an increase. In August, Brazilian service companies saw higher-than-usual levels of new business. Additionally, there was a modest improvement in the Brazilian construction sector, which played a role in bolstering the price of Hydrochloric Acid. This improvement likely led to increased industrial and construction activities, consequently boosting the demand for Hydrochloric Acid by the end of the quarter.
MEA
The Hydrochloric Acid market in the third quarter of 2023 exhibited a mixed pattern, with the market being relatively stable in the initial part of the quarter. This stability was influenced by weak demand from the domestic steel and textile industries, with market transactions largely driven by immediate needs, impacting the pricing dynamics of Hydrochloric Acid. Additionally, there was an abundant supply of the feedstock Chlorine, leading to a reduction in production costs. The global economy's ongoing slowdown, driven by stringent monetary measures to combat inflation, resulted in reduced demand and average selling prices for Hydrochloric Acid. Consequently, manufacturers opted to maintain stable prices, anticipating a potential recovery in demand amid the uncertain global market conditions. Towards the end of the third quarter of 2023, Hydrochloric Acid prices began to rise, driven by increased industrial and construction activities, which played a primary role in this upward trend as they boosted the demand for Hydrochloric Acid. Another significant driver of the price increase was a surge in new orders from the domestic market. With limited product availability unable to meet this growing demand, a supply shortage created a favorable environment for suppliers to adjust their prices upward.
For the Quarter Ending June 2023
North America
The market price of hydrochloric acid declined throughout the second quarter of 2023, weighed down by various factors such as low demand from the steel manufacturing sector, high inventory levels in the region, reduced production costs due to the low-cost chlorine market, falling crude oil prices and a weakening global economy. On the supply side, the region also had sufficient supply, and inventory levels were about average. According to the US Bureau of Statistics, the consumer price index for all urban consumers rose by 0.1% in May, but rising inflation discouraged consumers from buying. In addition, the smooth supply chain and low demand led to a decline in manufacturing activity in the region, as indicated by the falling US PMI. As a result, companies reduced their operating rates in response to the subdued demand environment, which put further pressure on purchasing costs. Finally, the price of hydrochloric acid deteriorated throughout the second quarter, with prices hovering around USD 130/MT Ex-works USGC in June.
APAC
The price of hydrochloric acid was under pressure throughout the second quarter in the Korean market. The lower sales and reduced operating rates in the downstream industries led to a balance between supply and demand, which stabilized prices. In addition, the downstream industries reduced their operating rates and waited for demand to pick up and raw material prices to stabilize. Although there was sufficient supply in the region, the slowdown in the construction sector resulted in fewer inquiries for steel, thus reducing the market for hydrochloric acid. In addition, production costs fell slightly as the price of liquid chlorine feedstock was generally lower. Overall, the decline in demand for hydrochloric acid and the easing of production costs contributed to further downward pressure on the hydrochloric acid market. According to data from Statistics Korea, the consumer price index remained unchanged at 111.12 in June 2023, as sluggish global demand weighed on the market. As a result, consumers reduced their spending, while companies reduced their selling pressure or kept it mostly stable to stimulate sales in the region. Finally, the price of hydrochloric acid declined throughout the second quarter, with June prices hovering around USD 172/MT CFR Seoul.
Europe
The price of hydrochloric acid in the European market fell significantly during the second quarter of 2023. The upstream market for liquid chlorine consolidated at a low level with average cost support, while downstream demand was mainly below average. However, crude oil prices fell during the first half of quarter because of the Fed's interest rate hike, gloomy expectations for the global economy and concerns about the US banking sector. On the export side, there was a decline in export demand due to lower demand in importing countries such as France, the UK and Italy. Meanwhile, European monthly producer prices fell by 0.9% in May, highlighting the challenges facing the economy in reviving demand and restoring economic growth. In addition, annual inflation was expected to be 5.5% in June 2023, down from 6.1% in May, according to Eurostat, the European Union's statistical office. Conclusively, the price of hydrochloric acid fell throughout the second quarter, with prices in June hovering around $129/MT CFR Immingham.
For the Quarter Ending March 2023
North America
Hydrochloric Acid prices showed a downward trend throughout the first quarter of 2023, owing to the decline in the demand from primary consuming downstream industries such as Steel and disinfectant. Due to poor demand fundamentals in the domestic market, prices for Hydrochloric Acid turned southward. However, the downtrend was supported by the declining feedstock Chlorine prices amidst falling regional uptake from steel industries, which had a negative impact on Hydrochloric Acid demand from these sectors. Under such circumstances, local Hydrochloric Acid makers were afraid to produce products, as inventories were sufficient to fulfill the consumer's appetite. As a result, the price for Hydrochloric Acid declined throughout Q1, with prices hovering at USD 146/MT Ex-Works USGC.
APAC
The market for Hydrochloric Acid in the Asian region showed mixed sentiments, with prices showcasing both ups and downs during the first quarter of 2023. During the first and the last month of the quarter, the increment in the upstream liquid chlorine market had a significant impact on the production cost. Meanwhile, the downstream had a broad desire to purchase, and the ammonium chloride market had stabilized at an elevated level. Overall, downstream procurement excitement was high and upstream support had increased. Additionally, the need for hydrochloric acid was expanding because it is an important chemical, and companies were aggressively increasing output rates to deal with the COVID aftermath. However, the market also witnessed a downtrend for a shorter period due to the sufficient inventories in the region. As a result, the Hydrochloric Acid market showcased fluctuation throughout Q1, with prices hovering at USD 26/MT FOB Qingdao during March.
Europe
The fundamentals of weak demand and oversupply were exerting pressure on the European Hydrochloric Acid market. Lowering purchasing activity, with end-use consumption weak from steel and disinfectant industries, resulted in production curtailment as producers attempted to mitigate the effects of the limited buyer appetite. Therefore, the local Hydrochloric Acid makers were also afraid to produce products, as inventories were sufficient to fulfill the consumer's appetite. The decline was further supported by steel production cuts announced by German mills during the month, which was intended to balance an oversupplied market, especially in the flat steel sector. During March, the price for Hydrochloric Acid declined and settled at USD 115/MT FOB Hamburg.
For the Quarter Ending December 2022
North America
The Hydrochloric acid prices were low in the quarter ending December of 2022 in North America. The silent downstream steel demand due to the bearish steel market and domestic mills continued outages and supplies along with industrial output curbed in the fourth quarter of 2022. The rising market uncertainties led to the plunging price trajectory for the product throughout the quarter. The escalating inflation slowed economic activities, which has deteriorated buying sentiments in the downstream sectors for Hydrochloric Acid. The inventories remained steady in this quarter for the commodity. Additionally, the low demand and ample stocks led to the Force Majeure in Covestro, located in Texas (USA), from 23 December 2022 to 31 December 2022. Therefore, the price of Hydrochloric Acid 35-37% was quoted at USD 153/MT Ex-Works USGC (USA) in December 2022.
APAC
The hydrochloric acid market showcased mixed sentiments in the quarter ending December 2022. The commodity prices were impacted by the fluctuating downstream steel demand in the Chinese market. The ease in the COVID-19 curbs in late November 2022 has led to a pick-up in the downstream demand and prices in the APAC Region. Rising offers and prices in China remained the key factor in supporting the price movement of the product. The Domestic downstream steel demand and declining coal prices have resulted in increasing profit margins in the market. Meanwhile, volatility in the upstream energy prices also remained the key factor affecting the price parity of Hydrochloric Acid in the APAC region. Thus, the price of Hydrochloric Acid was assessed at USD 26/ton FOB Qingdao (China) in December 2022.
Europe
The prices of Hydrochloric Acid demonstrated mixed market sentiments in the fourth quarter, due to the supply disorder and weak price support from the downstream industries. The crippled Russian oil and gas supplies have led to an input cost pressure on the Hydrochloric Acid manufacturers in Europe. The worsened demand fundamentals and skyrocketing energy prices have led to production cuts in the region, affecting the price trajectory of Hydrochloric Acid. The deteriorating downstream steel market remained the primary factor of the tumbled price trend for Hydrochloric Acid in this quarter. The price of Hydrochloric Acid 33-37% was assessed at USD 130/ton FOB Hamburg (Germany) in December 2022.
For the Quarter Ending September 2022
North America
Hydrochloric Acid prices showcased an upward trend during the third Quarter of 2022. High energy prices and a high inflation rate caused input cost pressure on the Hydrochloric Acid market in the USA. Meanwhile, the elevation in the commodity prices resulted from a stronger US dollar globally, impacting the profit margins of the enterprises. Downstream demand from the industries such as disinfectant and steel segment remained stable in this Quarter. In addition, Olin's declaration of reduction in the Chlor alkali capacity by the end of this year has led to bullish buying sentiments in the regional market of Hydrochloric Acid. Thus, the price of Hydrochloric Acid was assessed at USD 179/ton Ex-Works USGC (USA) 2022.
APAC
Hydrochloric Acid pricing dynamics showcased a surging trajectory in the Quarter ending September 2022. The commodity prices rose with the rise in the raw material costs and significant currency depreciation against the US dollar, as the rise in the inflation rate has led to upward input cost pressure for Hydrochloric Acid in Japan, China, and other APAC countries. Meanwhile, increased demand from the primary consuming steel sector also impacted the costs of the product. Escalation in the cases of Covid 19 in China hampered production in several chemical-producing cities, such as Shanghai, amidst a zero covid policy. Thus, Hydrochloric Acid's price was assessed at USD 190/ton FOB Tokyo (Japan) during September 2022.
Europe
The prices of Hydrochloric Acid demonstrated stable market sentiments in the domestic and regional markets due to the supply disorder. The conflict between Russia and Ukraine has resulted in a cut in Russian gas and oil supplies. Thus, market players struggled with high energy and electricity prices during the third Quarter of 2022. The buying interest amongst the domestic buyers in the European market witnessed plunging momentum, and surplus availability amid slow offtakes remained a key concern for the traders and sellers. The high inflation rate and currency depletion against the US dollar also conclusively affected the European countries' commodity market. Demand for the product from the downstream steel and disinfectant industry remained constant in the Quarter ending September 2022.
For the Quarter Ending June 2022
North America
In North America, Hydrochloric Acid prices showcased an overall stable trend throughout Quarter 2 of 2022. High demand from the steel industry amid various government initiatives in the construction segment and a high inflation rate due to the War caused upward pressure on the costs of Hydrochloric Acid in the USA. Hydrochloric Acid prices were impacted by the decent demand from the downstream industries, such as disinfectant and steel industries. High energy values affected the price movement of the product in the North American region. Meanwhile, a stock shortage made enterprises raise the prices for the product amid high demand from downstream industries. Force majeure in primary chlor alkali plant, Olin led to crippled availability of inventories for Hydrochloric Acid in North American region.
APAC
Hydrochloric acid prices surged in the second quarter of 2022 due to increased demand from the primary consuming steel sector. Drowning cases of Covid 19 in Asian countries hampered production in several chemical-producing cities, such as Shanghai, amidst the government's implemented a zero covid policy. Meanwhile, inhibited production led to a shortage of inventories to fulfill existing demand. HCl prices showed inclination backed by the insufficient availability of stocks and a high inflation rate. Moreover, high energy values due to seasonal electricity consumption in China also conclusively affected the price trend of Chinese Hydrochloric Acid. Besides, Downstream buyers showcased bullish buying activity at lower costs which widened the demand-supply gap in the local market of Asian countries in June end.
Europe
In Europe, the prices of Hydrochloric Acid showed weak market sentiments in the domestic and regional markets due to the supply disruption. The ongoing conflict between Russia and Ukraine diminished the buying interest amongst the domestic buyers in the European market, and surplus availability amid slow offtakes remained a key concern for domestic traders. The high inflation rate due to War also conclusively affected the product's values in the local market of Europe. Meanwhile, traders took advantage of scarcity and raised their offers on their existing piled-up inventories. In addition, demand fundamentals for the product from the downstream steel industry remained firm. They supported a marginal uptrend in European Market in May. The price of HCl remained stable and assessed at USD 140/MT FOB Hamburg in Germany at the end of June.
For the Quarter Ending March 2022
North America
In North America, Hydrochloric Acid prices showcased fluctuations throughout Quarter 1 of 2022. Demand in the primary HCL-consuming steel industry was deemed high as various initiatives have been planned by the government of several North American countries, such as the USA. In January, strong performance of the steel sector led to an appreciable rise in the prices of Hydrochloric acid. Players like Steel Dynamics and Cleveland-Cliffs showcased optimism in the consumption of steel in the regional market. Prices of Hydrochloric Acid took a downfall in February because of stability in demand and ample availability of stock. Meanwhile, during March increase in offtakes of HCl in the oilfields contributed to the upward trend in its prices. Prices of Hydrochloric Acid were assessed at USD 178/MT Ex-Works USGC in the USA during March.
Asia Pacific
Hydrochloric Acid prices declined in quarter 1 of 2022 as China’s carbon emission targets compelled primary consuming steel sector manufacturers to keep the output low. Moreover, a resurgence of Covid 19 in Asian countries resulted in halted production in several chemical producing cities, such as Shanghai amidst the country implemented a zero covid policy. Additionally, resurgence of Covid 19 led to ample availability of stock. HCl prices came down from USD 53/MT FOB Qingdao to USD 53/MT since late-march in China. Manufacturers were compelled to lower the prices to maintain stable offtakes in the domestic sector.
Europe
In Europe, prices of Hydrochloric Acid showed strong sentiments in the domestic market due to the disruption in supplies. Inadequate availability amid high natural gas prices remained a key concern for domestic manufacturers due to which they were compelled to revise their offers during quarter 1 of 2022. Meanwhile, domestic traders took advantage of scarcity and raised their offers on their existing inventories. In addition, demand fundamentals for the product from the downstream metal industry remained firm. HCl prices were assessed at USD 145/MT FOB Hamburg in Germany at the end of March.
For the Quarter Ending December 2021
North America
In North America, Hydrochloric Acid (HCl) prices witnessed a significant hike during early Q4 backed by the extended shortage of Chlorine in the region. Force majeure by Oxychem on its Chlor-Alkali plant continued to impact HCl prices in Q4. Even though the performance of the steel sector remained sturdy across Q4, however the year end slowdown caused a substantial drop in the overall HCl consumption. Major steel companies like Nucor, Steel Dynamics and Cleveland-Cliffs in US posted an overall decline in late November sales which extended in the month of December as well. HCl (35-37%) prices in US turned bearish, drifting to USD 165 per MT Ex-Works USCG in December.
Asia
In Asia, Hydrochloric Acid (HCl) prices fluctuated in a narrow range after October in majority of the Asian countries. The decline in demand for Hydrochloric Acid post festive season in India levied a direct effect upon its prices. Besides decline in Chlorine prices due to extensive production of Caustic Soda despite of its narrowed demand also influenced overall prices of HCl in Q4. HCl Industrial Grade (33%) prices in December finally settled at USD 54 per MT in December. In China, astonishing decline in the overall steel consumption due the dept crisis in the construction sector caused a major fall in HCl prices in the near term. HCl prices in China drifted throughout Q4 amidst limited demand of the product amidst its ample availability. HCl prices in China were assessed at near USD 50 per MT in the whole of December.
Europe
Market sentiments of HCl remained firm throughout Q4 following the limited product availability. Towards the start of November, prices of HCl increased steeply as the supply of raw material Chlorine remained tight with producers seeking the best value to compensate for high energy cost. Unprecedented rise in the Natural Gas prices in Europe heightened fears of acute power crunch. Due to abrupt surges in energy values, several European chemical producing companies increased their product prices. HCl prices were assessed to be USD 125/MT FOB Hamburg (Germany) as Q4 progressed in November. With resumption in operations of Vinnolit Caustic Soda plant, supply situation marginally eased towards December end.
For the Quarter Ending September 2021
North America
In North America, Hydrochloric Acid (HCl) prices witnessed an exponential hike during the third quarter backed by the extreme shortage of Chlorine in the region. In US, many chemical industries were still recovering from the impacts of winter storm Uri when Ida hurricane made landfall in the Gulf Coast of the US in August end. Oxychem declared force majeure on its Chlor-Alkali plant that further impacted the supplies of the chlorine in the region. The situation further exerted pressure on the HCl market as many of the chlorine production plants were already closed at that time period. Hence, limited supply of feedstock and firm demand from the downstream sectors supported the pricing trend of HCl in the concerned quarter.
Asia
In Asia, Hydrochloric Acid prices soared throughout the quarter backed by the limited availability of feedstock and firm offtakes from the downstream sectors in Q3 of 2021. In China, despite the supply chain disruption caused by the congestion on several ports, marginal rise in the prices of HCl was observed due to the ample availability of the product in this timeframe. In India, prices of HCl experienced a prevalent hike supported by the modest demand from downstream manufacturers in the domestic as well as international market. During this quarter, manufacturers majorly focused on catering to exports which provided firmness to the HCl market in India. Therefore, HCl Industry Grade (33%) Ex- Depot Mumbai prices gained significant value and rose to USD 51.55/ MT during September.
Europe
The European Hydrochloric Acid (HCl) market witnessed an upward trajectory in the prices backed by the sturdy offtakes from the downstream manufacturers in both domestic and international markets. Spike in the feedstock Chlorine prices was observed due to the reduced operations at chlor-alkali plants because of energy crisis across the European region. In addition, soaring freight charges and import delays due to the shortage of shipping containers further sent ripples to the prices of HCl in the region.
For the Quarter Ending June 2021
North America
Hydrochloric Acid (HCl) prices remained firm during this quarter in North America, backed by tight supply and improving demand from the downstream sectors. Due to the extreme shortage of Chlorine in the US after prolonged shutdown of major Chlor-Alkali units, the price of almost all Chlorine derivatives increased rapidly in USA. In addition, Westlake Chemicals announced force majeure at its Washington plant during first half of June, this plant has the capacity of 75 KTPA of Chlor-alkali production. The shut down reduced the supply of several chemicals including Hydrochloric Acid, Caustic Soda and Chlorine in USA.
Asia
Hydrochloric Acid prices fluctuated in a narrow range in the APAC region, due to abundant inventory levels amidst modest to firm demand. The demand for HCl remained modest in China from the downstream sectors, while the availability remained abundant to satisfy the overall need. Meanwhile, Kamira announced to increase its production capacity for Sodium hypochlorite and Polyaluminum Chloride, where HCl is the key ingredient in the manufacturing process. The expansion will inevitably increase the demand for Hydrochloric Acid in the country although most of the company’s demand can be satisfied by the captive production. While in India, the prices traversed a steep downward trajectory during this period, due to lacklustre buying demand in effect of pandemic in the country and ample inventory levels. Thus, price dwindled effectively and reached USD 34.5/MT during June in India.
Europe
The European Hydrochloric Acid (HCl) market remained stable during this quarter. The demand showcased decent rise throughout the quarter while availability remained fairly tight to hold on the price uptrend. Downstream sectors like PVC and steel were showing firm sentiments, while feedstock Chorine was running on shortage in the meantime. The circumstances supported overall increase in the offers of Hydrochloric Acid across the region during this quarter in the region. In addition, prices of feedstock chemicals also increased due to shipment delays and soaring freight cost.
For the Quarter Ending March 2021
North America
Continuous shortage of the feedstock chemicals and halted production activities forced the prices of HCl to rise aggressively across the region. Multiple hurricanes during Q4 2020, had already created acute shortage of HCl but during Q1 2021, devastating winter storms disrupted all the production activities again. Winter storm led major plants to go for force majeures in mid-February like Olin Corporation’s freeport Texas units. Similarly, several other HCl and feedstock chemical plants shut down due to this rare climate calamity, leading to rise in average FOB prices by more than 30% within the quarter, which settled down at USD 420 per MT during March 2021.
Asia
The Asian HCl market showed mixed sentiments during the quarter. Lunar holidays in China reduced the inventory levels of major Chinese manufacturers, hence the prices followed an upward trend during Q1 2021. FOB prices for China rose from USD 245 per MT to USD 280 per MT from January to March. While in the Indian market, an opposite price trend was observed, where the average price of HCl (33% grade) dwindle by 10% due to ample stock availability and reduced demand from downstream sector.
Europe
Demand for HCl from the downstream sectors marked a downtrend during Q1 2021. One of the key reasons was lower downstream consumption amid rising in COVID 19 cases across the region. There was slight rise in demand from the steel manufacturing sector due to marginal sectoral improvement across the region, which was too backed by the government policies. Thus, the prices faced marginal loss during this time space, like FOB prices for HCl in Germany were observed to reduce from USD 115 per MT to USD 113 per MT from January to March 2021.
For the Quarter Ending September 2020
North America
Supply of HCl fell substantially in Q3 2020 in the Americas as manufacturers reduced production rates due to a major slump in demand of other Chlor-Alkali products. During the quarter ending September, acid demand from the oil and gas industries was pressured due to restricted use in the applications of hydraulic and fracturing process as the auto industry slowly began to revive from the pandemic blows. HCl contracts registered marked QoQ fall, weighed under the limited requirement of the car fuel and undue delays in the start of steel industries after coronavirus-led restrictions and seasonal storms triggered trade disruptions.
Europe
The European region encountered HCl supply shortage in Q3 2020 due to disintegration of upstream isocyanate facilities across several locations. Offers were raised after Covestro and BASF declared shutdowns at their isocyanate facilities in August. Demand patterns, especially in Iberia were not too high amid limited sectoral offtakes from the metalworking and automobile industries. Consumption by the downstream industries such as water purification also remained weaker because the tourism industry was facing dents induced by the travel restrictions. The NWE (northwest Europe) Hydrochloric Acid prices registered 10 per cent increment on month-on-month basis extending gains due to production issues, a market source revealed.
