Market for Inorganic Products in March    

Concentrated nitric acid     

Since mid-February, the domestic price of concentrated nitric acid has been rising continually, up from RMB1 200/t in early February to RMB1 600-1 700/t in early March. The average price rise reached RMB400-500/t, a 25% increase in only a month. Some enterprises still lifted the price in mid-March. As of March 16th, Taiyuan Chemical Industry Co., Ltd. quoted at RMB2 100/t. Affected by the financial crisis, nitric acid enterprises have suspended or cut production in succession, which results in inadequate concentrated nitric acid supply in domestic market. In addition, the soaring price of liquid ammonia leads to a much higher cost in producing concentrated nitric acid. The demand boom in downstream industries such as aniline, nitrochlorobenzene and dyes, has also driven the price rising of concentrated nitric acid.

Hydrogen peroxide (H2O2)   

In mid-February, smooth operation in hydrogen peroxide's downstream industries, such as papermaking industry, textile industry and chemical synthesis industry, lead to a slow demand increase for hydrogen peroxide. In late-February, hydrogen peroxide's price in eastern China began to rebound and the bulk price (27.5% hydrogen peroxide) was RMB1 000/t - RMB1 200/t. While in southern China, the price was RMB1 100-1 300/t and in northern China was RMB800/t - RMB1 000/t. Although the hydrogen peroxide enterprises hoped to keep raising the price, the sufficient hydrogen peroxide supply in domestic market causes the prices maintaining at a low level. As of March 23rd, the price of 27.54% hydrogen peroxide in Guangdong Zhongcheng Chemicals Co., Ltd. was quoted at RMB1 100/t, 35% hydrogen peroxide was at RMB1 300/t and 50% hydrogen peroxide at RMB2 000/t.

Sulfuric acid    

In mid-March, the sulfuric acid sales volume in domestic market increased slightly compared to that in late February, mainly due to the fact that the increasing demand for compound fertilizers in spring ploughing period leads to a tiny demand growth of sulfuric acid. The trading price of sulfuric acid increased a little, up about RMB50 per ton. The highest and the lowest prices for sulfuric acid were in the northeast and the northwest separately with trading prices for 98% sulfuric acid standing at about RMB400/t and RMB60/t respectively. In other regions, the price varied from RMB100/t to RMB300/t. In late March, for 98% sulfuric acid produced from sulfur, the trading price was about RMB300/t; for those produced from the exhausted metallurgical gas, the price varieds from RMB60/t to RMB200/t; for those produced from pyrite, the price was between RMB180/t and RMB250/t.
    As the sulfuric acid enterprises have large inventory, sales will still be slow and the price of sulfuric acid will maintain at a low level in a short term.

Sodium tripolyphosphate (STPP)    

In March, the price of STPP in domestic market has remained stable and the operating rate in STPP enterprises increased slightly when the price rebound of raw materials such as phosphorus slowed down. In mid-March, the trading price in northern China was around RMB5 100/t - RMB5 300/t, about RMB100/t lower than that in early March. As of March 17th, the A-class STPP from Tianjin Ronghong Chemical Co., Ltd. was quoted at RMB5 300/t. Since March, the STPP price in eastern China and southern China has kept at RMB5 200/t - RMB5 500/t, however, it dropped about RMB200/t in late March in some areas, and the price in central China has maintained at RMB5 100/t - RMB5 200/t. As of March 17th, the price of 95% STPP of Hubei Xingfa Chemicals Group Co., Ltd. is US$820-830/t FOB Shanghai; the price in southwestern China is lower and has kept at RMB4 800/t - RMB5 000/t, about RMB200/t lower than that in late February.
   Although the phosphorus price keeps soaring after the abolition of favorable policies for power price in producing phosphorus, demand in the downstream industries such as the metal and detergent industries remained unchanged, so the STPP price will still fluctuate at a low level in a short term.