Commodity index: on March 8, the polyaluminium chloride commodity index was 105.41, unchanged from yesterday, 3.30% lower than the highest point of 109.01 (2019-08-28) in the cycle, and 4.47% higher than the lowest point of 100.90 on December 19, 2019. (Note: cycle refers to 2019-04-01 till now)

Quotation: according to the monitoring data of business agency (100ppi. Com), in early March 2020, the proportion of poly aluminum chloride (solid, content ≥ 28%) manufacturers returning to work and production continued to rise. The mainstream quotation in domestic market: poly aluminum chloride solid (industrial level, content ≥ 28%) with tax quotation of about 1800-2200 yuan / ton, liquid (industrial level, content 10% – 12%) with tax quotation of about 390-450 yuan / ton, and the manufacturer’s shipment recovered Normal. For enterprises with high inventory, goods are generally dumped after commencement, and the overall quotation is almost stable; however, for some large manufacturers and traders, the delivery price is slightly increased.

Upstream and downstream: since the middle of January 2020, after the Spring Festival holiday and delayed return to work, the domestic market hydrochloric acid price is stable. In February, the price of hydrochloric acid market manufacturers was average, and the price in North China was temporarily stable at 243.33 yuan / ton. Due to the general market situation of upstream liquid chlorine and weak support of hydrochloric acid, downstream dyes, calcium chloride and chloroethane still mainly purchase hydrochloric acid according to early demand, and the pressure of hydrochloric acid delivery is relatively large. Downstream of polyaluminium: according to the manufacturer, the current water treatment project construction has been started in succession, the demand has recovered well, driven by good demand, and the manufacturer’s commencement is normal.

Industry: in late July 2019, recently, the water purification and environmental protection enterprises in Yong’an Road sub district office of Gongyi City, Henan Province received the notice of production suspension, which requires that: according to the analysis of the city’s environmental pollution and future pollution weather, the municipal office requires all deep treatment enterprises to stop production and treatment before acceptance, and can resume production after dispatching or acceptance according to the office. The production was resumed for ten days in August and stopped again on 15th. According to the manufacturer, the shutdown was more affected by the National Games held in Zhengzhou on September 8th. The local environmental protection inspection was strict, and all local enterprises in Gongyi were required to stop production for environmental protection treatment and maintenance. After the National Games on September 8, the local manufacturers did not receive the notice of commencement immediately, and the strict inspection of environmental protection was in progress. In late September, local manufacturers in Gongyi began to resume production one after another, and the supply of goods gradually returned to normal. On December 19, Gongyi, the main production area of Henan Province, issued an emergency notice, requiring all enterprises to stop production and all goods transportation from now until January 1, 2020 in accordance with the spirit of the 16th scheduling meeting of Gongyi City for environmental pollution control. Zhengzhou municipal leaders will lead the supervision group to continuously supervise and inspect the implementation of management and control. If it is found that the implementation is not in place, the person in charge of the enterprise and the truck driver will be detained. The enterprise will be included in the blacklist of integrity, and the enterprise will be subject to top-level punishment. This notice is very strict for manufacturers and freight requirements, and manufacturers should stop production. During the Spring Festival holiday from January to February 20, 2020, the relevant enterprises in the main production area stop production and delay to return to work. After February 20, the manufacturers in the main production area returned to work one after another. At present, the logistics gradually returned to normal in March, and the inventory was constantly consumed. It is reported that the logistics cost in some regions has increased since, and the quotation has increased during the period of less vehicle return to work due to the delay of construction after, but the transportation cost has decreased after most logistics enterprises go to work in the near future.

Aftermarket forecast: the analysis of the business agency shows that the resumption of work is in good condition, the downstream demand of PACl increases, the demand is stable, the transportation system is basically restored, and the delivery cost is stable. The current supply of goods of the manufacturer is sufficient. The main production area of Henan water treatment enterprise is back to work. The price of the factory with high inventory in the early stage is slightly reduced, and the production of the manufacturer is back to normal. The upstream hydrochloric acid market is stable this month, and the downward pressure is expected to be greater in the later period. It is expected that with the increase of downstream demand, the market of polyaluminium will gradually pick up in the future, and the price will continue to be stable when the current inventory is still large.