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.
