Commodity index: on December 30, the polyaluminum chloride commodity index was 98.69, up 0.39 points from yesterday, down 9.47% from 109.01 points (August 28, 2019), the highest point in the cycle, and up 17.04% from 84.32 points, the lowest point on August 18, 2020. (Note: period refers to from April 1, 2019 to now)

Monitoring found that since the water treatment plants in Henan main production areas stopped production in the middle of last month, the market of polyaluminum chloride continued to rise; in December, the market of polyaluminum chloride continued the trend of November, showing an obvious upward trend of shock. According to the monitoring data of business society, the lowest price of polyaluminum chloride with solid content ≥ 28% is 1740 yuan / ton at the beginning of this month, and the highest price is about 1825.71 yuan / ton at the end of this month. The monthly increase continues to expand to 4.93%, which is also the highest price of polyaluminum chloride since 2020.

Raw material cost: according to the monitoring of the business community, the price of hydrochloric acid in North China fell sharply this month. The price was about 310 yuan / ton at the beginning of the month and 287.5 yuan / ton at the end of the month, with a monthly decrease of about 7%. The main factor is that the downstream hydrochloric acid production stopped, the demand decreased and the supply of hydrochloric acid exceeded the demand. Although the price of natural gas used in the production of polyaluminum chloride is high, the contradiction between supply and demand is prominent, and the situation is difficult to change in the short term. However, because the polyaluminum chloride enterprise, one of the main production areas of water treatment enterprises, is still shut down, the fluctuation of the above three commodity prices has a weak impact on the water treatment enterprises.

Downstream demand: the current environmental inspection requirements are still strict, the new year’s Day holiday is around the corner, the demand has been relatively light, the follow-up is facing the Spring Festival holiday, I’m afraid there is no big demand before the festival.

Industry: in 2020, the water treatment industry will end with the best market of the year, and the production of enterprises will continue.

Future forecast: business community analysis believes that the new year’s Day holiday is coming, and 2020 is near the end. In January 2021, under the uncertain situation of the manufacturer’s resumption of production, the shortage of some sources of goods may last for a period of time. After new year’s day, with the approach of the Spring Festival holiday and the increasingly cold weather, the demand for polyaluminum chloride will be much lighter. It is preliminarily estimated that the price will be mainly stable.