Prices of Inorganic Chemicals Pick up      

Caustic Soda

The caustic soda price increased slightly in eastern China in August. The ex-factory price of ion-membrane process caustic soda (with a concentration of 32%) in Jiangsu province was lifted from RMB380-400/t in late July to RMB410-430/t in late August. The caustic soda price in Shandong province and northwestern China kept downtrend throughout August, especially in Wuhai of Inner Mongolia, the price of ion-membrane caustic soda with a concentration of 32% dropped to RMB850/t in late August, RMB200/t lower than in late July.
   In early September, the demand growth in downstream sectors such as dyeing and printing, chemical fiber industries, and the output reduction of caustic soda both drive up the price of caustic soda in eastern and northern China. But manufacturers are still increasing their operating rate. So the price of caustic soda will show slight increase with fluctuate in the short term.

Liquid Chlorine     

The price of liquid chlorine in domestic market went down in the first ten days of August and then began to recover. In early September, the price of liquid chlorine in Hebei province shot to RMB1 400- 1 450/t from RMB1 000/t on August 20th, or about RMB400 higher than that in late August. In Shandong province, the ex-factory price soared to RMB1 400-1 600/t in early September from RMB1 000-1 100/t in late August.
   The price growth is mainly caused by production reduction of large chlor-alkali enterprises in overhaul. As entered into autumn, the demand for liquid chlorine in downstream sectors such as pesticide intermediates keeps increasing.
   September and October are usually good season for the sales of liquid chlorine. The price increase of liquid chlorine in these two months can also be expected this year, but the restriction of hazardous chemical transportation during China's 60th National Day celebration period (October 1st to 8th) may be an obstacle for product delivery, causing price changes out of step among different regions.

Sulfuric Acid      

In late July and mid August, the price of sulfuric acid firstly picked up in southern China, then following the eastern and central China. The bulk trading price of 98% sulfuric acid in Shandong province increased to RMB130/t on September 10th from RMB90/t in mid-July. The flue gas based sulfuric acid in northwestern China bottomed out from RMB40/t in mid-July to RMB50/t in early September.
    Experts analyzed that the price growth in mid September mainly reflected the downstream enterprises' inclination of storing goods that caused by the expected inconvenient purchase during the National Day celebration period because of government's restriction on hazardous chemical transportation.
    It is still hard to say whether the price will maintain the growing tendency after the celebration, because many customers will hold wait-and-see attitude due to their confusions about the future market.

Concentrated Nitric Acid    

In August, the bulk price of concentrated nitric acid in domestic market firstly dropped and then returned back. Contrast to the constant price growth in July, the main ex-factory price decreased to RMB1 600-1 650/t in late August from RMB1 900-1 950/t in early August.
   The ex-factory price of concentrated nitric acid in Shandong Lianhe Chemical Co., Ltd. was RMB1 650-1 700/t on September 14th, RMB100 higher than August 20th and RMB250-300/t lower than early August.
   Price downturn was mainly because of the market panic caused by the rumor that the 100 000 t/a nitric acid unit in one subsidiary of Yangquan Coal Industry Group will soon come on stream after relocation in Qingdao.
    Due to the falling inventory in both northern and southern China in early September, as well as the general overhaul in southern China and demand increase in downstream industries at present, the price of concentrated nitric acid will keep increase in late September.