In August, the domestic concentrated nitric acid market was relatively stable, and there was no expected good market. In September, the market is expected to continue to dominate the shock consolidation.
In August there were many nitric acid companies that needed to stop and overhaul. One of the largest concentrated nitric acid production enterprises in the country, Anhui Huaihua Group Co., Ltd. has produced more than 30,000 tons per month since the third concentrated nitric acid plant was put into operation, accounting for 22% of the total resources in the domestic market. The company’s parking overhaul will The drastic shrinkage of the market supply has had a major impact on the entire market. In addition, this year's exceptionally hot weather and low plant output have led to a certain increase in the price of concentrated nitric acid. Many people also predict that the domestic concentrated nitric acid market will generate a new wave of market prices in August this year. Some companies in Shandong have even made good preparations in advance, waiting for a good market.
It is understood that in August domestic equipment parking are: August 16th, Anhui Huaihua Group entered the parking maintenance plan ahead of schedule for a week; in early August, PetroChina Lanzhou Petrochemical Company arranged parking inspection for safety for one month; August 10. Hubei Jinyuan Chemical Industry Co., Ltd. shut down for a week; in mid-August, Liuzhou Chemical Co., Ltd. has reduced its output by 30% for one week due to equipment; in late August, Shandong Huayang Pesticide Chemicals Group Co., Ltd The production crew was forced to suspend production for about a week.
However, after the sharp decline in market resources, the normal production of nitric acid companies did not feel very strong pressure to find the goods, people looked forward to a good situation did not appear. According to industry analysts, there are three main reasons for this anomaly:
One is that the aniline plant is underemployed and the downstream demand is poor. For instance, Jiangsu Shuangliang Group's new 50,000-ton/year aniline plant, PetroChina's Lanzhou Petrochemical Company's 100,000-ton/year new aniline plant, and PetroChina Jilin Petrochemical Company's 136,000-ton/year aniline plant did not drive. The second is that the concentration of concentrated nitric acid is too large. Although the concentrated nitric acid enterprises that stopped production and maintenance in August were more concentrated, except for PetroChina Lanzhou Petrochemical Company, the production stoppage time of other companies was all around one week. In June, the national output of concentrated nitric acid increased only 5.7% year-on-year, reaching 18.1% in July, and the output increased. The speed is obvious; the market continues to add new production. For example, in June, Anhui Huatai added 100,000 tons/year of equipment to drive, Anhui Huaihua Group added 100,000 tons/year of equipment to drive, and there will be new concentrated nitric acid in the second half of the year. Device drive. Due to the expansion of the market, the sales sentiment and confidence of market suppliers were suppressed.
Industry analysts believe that because last year's concentrated nitric acid market seriously deviated from the central axis of value, the price was too high, the industry profits, and induce a large number of enterprises to increase the project, a serious excess capacity. The "diving" of the price of nitric acid this year is entirely a normal reaction to oversupply in the market. After half a year's deep bottoming, the domestic concentrated nitric acid market has clearly bottomed out in July-August, and it is expected that the nitric acid market will continue to be dominated by shock consolidation in September.
Industry insiders pointed out that due to the current oversupply, the market does not undergo a shock and wash, and the market price of concentrated nitric acid products will not return to its normal position. Only after repeated shakeouts and dishwashing, forcing nitric acid producers with high production costs and weak market risk resistance, will the concentrated nitric acid market really recover its true colors.
In August there were many nitric acid companies that needed to stop and overhaul. One of the largest concentrated nitric acid production enterprises in the country, Anhui Huaihua Group Co., Ltd. has produced more than 30,000 tons per month since the third concentrated nitric acid plant was put into operation, accounting for 22% of the total resources in the domestic market. The company’s parking overhaul will The drastic shrinkage of the market supply has had a major impact on the entire market. In addition, this year's exceptionally hot weather and low plant output have led to a certain increase in the price of concentrated nitric acid. Many people also predict that the domestic concentrated nitric acid market will generate a new wave of market prices in August this year. Some companies in Shandong have even made good preparations in advance, waiting for a good market.
It is understood that in August domestic equipment parking are: August 16th, Anhui Huaihua Group entered the parking maintenance plan ahead of schedule for a week; in early August, PetroChina Lanzhou Petrochemical Company arranged parking inspection for safety for one month; August 10. Hubei Jinyuan Chemical Industry Co., Ltd. shut down for a week; in mid-August, Liuzhou Chemical Co., Ltd. has reduced its output by 30% for one week due to equipment; in late August, Shandong Huayang Pesticide Chemicals Group Co., Ltd The production crew was forced to suspend production for about a week.
However, after the sharp decline in market resources, the normal production of nitric acid companies did not feel very strong pressure to find the goods, people looked forward to a good situation did not appear. According to industry analysts, there are three main reasons for this anomaly:
One is that the aniline plant is underemployed and the downstream demand is poor. For instance, Jiangsu Shuangliang Group's new 50,000-ton/year aniline plant, PetroChina's Lanzhou Petrochemical Company's 100,000-ton/year new aniline plant, and PetroChina Jilin Petrochemical Company's 136,000-ton/year aniline plant did not drive. The second is that the concentration of concentrated nitric acid is too large. Although the concentrated nitric acid enterprises that stopped production and maintenance in August were more concentrated, except for PetroChina Lanzhou Petrochemical Company, the production stoppage time of other companies was all around one week. In June, the national output of concentrated nitric acid increased only 5.7% year-on-year, reaching 18.1% in July, and the output increased. The speed is obvious; the market continues to add new production. For example, in June, Anhui Huatai added 100,000 tons/year of equipment to drive, Anhui Huaihua Group added 100,000 tons/year of equipment to drive, and there will be new concentrated nitric acid in the second half of the year. Device drive. Due to the expansion of the market, the sales sentiment and confidence of market suppliers were suppressed.
Industry analysts believe that because last year's concentrated nitric acid market seriously deviated from the central axis of value, the price was too high, the industry profits, and induce a large number of enterprises to increase the project, a serious excess capacity. The "diving" of the price of nitric acid this year is entirely a normal reaction to oversupply in the market. After half a year's deep bottoming, the domestic concentrated nitric acid market has clearly bottomed out in July-August, and it is expected that the nitric acid market will continue to be dominated by shock consolidation in September.
Industry insiders pointed out that due to the current oversupply, the market does not undergo a shock and wash, and the market price of concentrated nitric acid products will not return to its normal position. Only after repeated shakeouts and dishwashing, forcing nitric acid producers with high production costs and weak market risk resistance, will the concentrated nitric acid market really recover its true colors.