CAUSTIC SODA…………………………………………………………… (Page 1-20) SODA …world.ccaon.com/upfile/China Chlor Alkali Monthly Report_056.pdf · CAUSTIC SODA

Page 1

ISSUE NUMBER: 056 March 7th 2013

Lily Wang +861064335599-637 [email protected]

CAUSTIC SODA…………………………………………………………… (Page 1-20)

Raw Material

Domestic market

Export market

Downstream market

Forecast

Production news

SODA ASH ………………………………………………………………… (Page 20-27)

Domestic market

Soda ash price monitoring

Export Date

HYDROCHLORIC ACID …………………………………………………… (Page 27)

CHLORINE ………………………………………………………………… (Page27-28)

Page 2



Salt market

Last month, domestic salt market behaved steady with gentle business. Solar salt prices went up slightly,

and well salt and lake salt market was stable relatively. Downstream sectors presented sluggish situation,

but the demands on salt were richer, which offered certain support on salt market.

Prevailing prices

Market movement

Region

Price Property RMB/mt

Solar salt

Shandong ex-work 215-250

(excl. tax)

Last month, domestic solar salt price was stable to

up. It was said the increase was mainly due to the

following reasons. Firstly, the reduction in autumn

salt output resulted in tight industrial salt supply, so

players were reluctant to sell due to the lower

stocks. Secondly, caustic soda and soda ash

players ran the units stably, mirroring the richer

demands on solar salt products. Thirdly, the rain

and snow weather last year would exert

unfavorable influence on spring salt production.

Finally, the increase in import salt volume did not

exert evident influence on solar salt price.

Tianjin ex-work 270-350

(inc. tax)

Hebei ex-work 275-320

(inc. tax)

NE,China ex-work 360-405

(inc. tax)

Lake salt

Inner

Mongolia ex-work

230-315

(inc. tax)

In February, lake salt market was still at dull side in

NW.China. The market business was gentle and

prices were unchanged. Downstream demands

were better albeit with lower operating rate.

Meanwhile, lake salt players carried out the

production according to the real orders, so the

supply/demand condition was steady.

Qinghai ex-work 190-210

(inc. tax)

Xinjiang ex-work 180-230

(inc. tax)

Well salt

Sichuan ex-work 300-320

(inc. tax) In February, well salt market was steady with active

conclusion atmosphere. Firstly, some well salt

manufacturers mainly produced edible salt

products before spring festival holidays, mirroring

the reduction in well salt supply. Secondly, well salt

supply was tighter in some areas, and most players

Hunan &

Hubei ex-work

290-320

(inc. tax)

Jiangxi ex-work 310-370

(inc. tax)

CAUSTIC SODA

Page 3



Prevailing prices

Market movement

Region

Price Property RMB/mt

Jiangsu ex-work 340-370

(inc. tax)

had no enough stocks in hands. Thirdly,

downstream demands were stable. Fourthly,

increased coal prices supported the well salt

market tendency.

Domestic market

DOMESTIC PRICES OF LIQUID CAUSTIC SODA

Region

Prevailing prices (RMB/ lmt)

Market movement

D-30% Four

weeks ago M-32%

Four

weeks ago

E.China 620-650 650-680 640-750 680-750

In E.China, most chlor alkali producers

adjusted the production rate downwards

during Spring Festival holidays. Meanwhile,

the sudden shutdown of SP Chemical and

the shutdown of Hangzhou Electrochem

also caused the reduction in caustic soda

supply. Before holidays and during

holidays, producers decreased the offers

for releasing the stocks; after holidays,

players increased the offers gradually. In

Jiangsu, the price of 32% membrane grade

soda was between RMB 610-650/mt

ex-work, and higher price was around RMB

680/mt ex-work. In Zhejiang, the price was

around RMB 730-740/mt FD and RMB

750-770/mt FD for 30% membrane grade

soda and 32% membrane grade soda

respectively. As a whole, the market deals

were better in E.China and downstream

Page 4



Region


Market movement

D-30% Four

weeks ago M-32%

Four

weeks ago

demands would need some time to recover.

S.China 720-780 760-780 740-820 780-820

In February, caustic soda prices emerged

slight reduction in S.China along with the

gradual decline of price in N.China. In

Fujian, the price was RMB 820-850/mt FD

and RMB 1180-1200/mt FD for 32%

membrane grade soda and 50% membrane

grade soda respectively. In Guangdong,

traders offered the value at RMB

790-810/mt ex-tank and RMB

1200-1250/mt ex-tank for 32% membrane

grade soda and 50% membrane grade

soda respectively. The real deals were

watery. As a whole, the market supply was

sufficient, and downstream production

started up just now, so the real deals were

limited.

N.China 550-580 550-580 560-660 560-660

In N.China, caustic soda market behaved

unchanged last month. Different movement

emerged in different areas. In Shandong,

players still felt inventory pressures albeit

with the reduction in rate during holidays,

and the ex-work prices were RMB

550-650/mt for 32% membrane grade soda,

RMB 920-940/mt for 48% membrane grade

soda and RMB 960-980/mt for 50%

membrane grade soda respectively. In

Hebei, players increased the offers after

holidays, reportedly at RMB 600-613/mt

ex-work for 32% membrane grade soda. In

Tianjin, the market was steady. And the

prices were around RMB 650-700/mt for

32% membrane grade soda and RMB

Page 5



Region


Market movement

D-30% Four

weeks ago M-32%

Four

weeks ago

930-980/mt for 49% membrane grade soda

respectively. Totally, the market business

was not good in Feb.

NW.China 480-520 500-520 480-630 530-630

In Feb, caustic market was sluggish in

NW.China. Thanks to the decreased

consumption during holidays, producers

born large inventory pressure. In Wumeng

of Inner Mongolia, the price was RMB

1500/dmt ex-work for 30% membrane

grade soda and RMB 1500-1600/dmt

ex-work for 50% membrane grade soda.

And flake soda prices also went down in

NW.China. As a whole, caustic soda market

was insipid last month.

NE.China 750-800 750-800 800-880 800-880

Caustic soda market behaved common in

NE.China. Affected by holidays, the market

values decreased slowly compared to the

level of Jan. At present, the prices were

between RMB 830-880/mt ex-work for

30%-32% membrane grade soda, RMB

1250-1400/mt for 45% membrane grade

soda and RMB 1390/mt for 50% membrane

grade soda. In a word, the higher values

were unchanged and lower prices emerged

certain reduction. The supply/demand

condition was balanced and the market

business got certain turnaround after

holidays.

SW.China 750-800 750-800 810-860 810-860

In SW.China, caustic soda market was at

dull side. Some local chlor alkali producers

shut down for maintenance, mirroring the

reduction in market supply, so players want

Page 6



Region


Market movement

D-30% Four

weeks ago M-32%

Four

weeks ago

to increase the offers, but downstream

buyers were not acceptable. Currently, the

prices were around RMB 2550-2600/dmt for

30% membrane grade soda, RMB

2600-2650/dmt for 32% membrane grade

soda and RMB 2650-2700/dmt for 48%

membrane grade soda in Sichuan. In

Chongqing, the lower price was RMB

2550-2600/dmt ex-work for 30% membrane

grade soda and RMB 2650-2700/dmt

ex-work for 50% membrane grade soda.

Wholly, the market atmosphere was gentle

in Feb.

C.China 720-740 720-740 700-800 700-800

Compared with the level of Jan, caustic

soda prices decreased in C.China. Alumina

producers gave lower procurement prices,

reportedly decreasing RMB 300-350/mt

compared with the price of Jan. In Henan,

the prices of 32% membrane grade soda

were around RMB 2000-2100/dmt ex-work

and RMB 2300/dmt FD. In Hunan and

Hubei, the prices were around RMB

700-720/mt for 32% membrane grade soda

and RMB 1150-1200/dmt ex-work for 50%

membrane grade soda. In a word,

downstream demands were stable in

C.China. It was expected the market would

remain at dull side.

D-30%: Diaphragm grade 30% liquid caustic soda

M-32%: Membrane grade 32% liquid caustic soda

Page 7



Domestic Prices of 30% Caustic Soda

(From Jan-1st

2011-Feb 28th

2013)


(From Jan-1st

2011-Feb 28th

2013)


(Last one month)

500

550

600

650

700

750

800

2013-2-1

2013-2-4

2013-2-7

2013-2-10

2013-2-13

2013-2-16

2013-2-19

2013-2-22

2013-2-25

2013-2-28

E.China S.China


(Last one month)

650

670

690

710

730

750

770

790

810

2013-2-1

2013-2-4

2013-2-7

2013-2-10

2013-2-13

2013-2-16

2013-2-19

2013-2-22

2013-2-25

2013-2-28

E.China S.China

Page 8



DOMESTIC PRICES OF FLAKE CAUSTIC SODA

Region Data Prevailing prices (RMB/ mt)

Prevailing prices (RMB/ mt)

96% 99%

E.China

The first week 2850-2950 2900-3000

Flake soda market was sluggish in

E.China. Flake soda traders offered the

prices of 99% flake soda at RMB

2800-2900/mt ex-tank. And the

tonnages from Shandong and Tianjin

valued at RMB 2850-2900/mt FD. Along

with railway transportation alleviating,

lower-value tonnages from NW.China

flew into local market. And the increased

liquid soda price also pushed flake soda

market upwards. In consideration of

watery downstream demands, flake

soda market had not evident

improvement. It was expected flake

soda market would behave stable in the

future.

The second week 2850-2950 2900-3000

The third week 2850-2950 2900-3000

The fourth week 2700-2800 2750-2900

S.China

The first week 2950-3000 2950-3100 Flake soda market presented downward

tendency in S.China. 99% flake soda

price was between RMB 2850-2900/mt

and RMB 2900-3000/mt ex-tank in

Guangxi and Guangdong respectively.

After Spring Festivals, railway

transportation got certain alleviation,

mirroring the increase in tonnages from

NW.China. While downstream

production was resuming, the

oversupply condition emerged, causing

the reduction in market values about

RMB 100/mt. It was expected flake soda

market would hard to improve in the

short term.

The second week 2950-3000 2950-3100

The third week 2950-3000 2950-3100

The fourth week 2850-2900 2800-3000

N.China The first week 2600-2750 2700-2850 Flake soda market was watery in

Page 9



Region Data Prevailing prices (RMB/ mt)

Prevailing prices (RMB/ mt)

96% 99%

The second week 2600-2750 2700-2850 Shandong with common deals. Now, the

price was between RMB 2650-2700/mt

ex-work and RMB 2750-2850/mt

ex-work for 96% flake soda and 99%

flake soda respectively. The tonnages

from NW.China valued at RMB 2900/mt.

Local liquid soda prices were at lower

side, and flake soda processors mainly

carried out the production according to

the real deals. It was expected the

market would maintain steady in the

recent days.

The third week 2600-2750 2700-2850

The fourth week 2600-2750 2700-2850

NW.China Feb 1 – Feb 28 2200-2250 2250-2300

Currently, flake soda market was insipid

in NW.China with common deals. The

prices were between RMB

2200-2250/mt ex-work and RMB

2250-2300/mt ex-work for 96% flake

soda and 99% flake soda respectively. It

was said downstream users had no

strong intention to purchase, while the

market supply would increase along with

the production recovering. Market

players had no happy expectation on the

coming tendency.

SW.China Feb 1 – Feb 28 2750-2850 2800-3000

Flake soda prices declined narrowly in

SW.China. The prices were between

RMB 2750-2850/mt ex-work and RMB

2900-3000/mt ex-work for 96% flake

soda and 99% flake soda respectively.

Although local flake soda processors cut

the rate, the market supply was still

surplus due to the tonnages from

NW.China. Downstream demands were

limited. It was expected flake soda

market maybe go down continuously.

Page 10



Export market

The liquid caustic soda export market

In February, China market experienced a long holidays and the liquid soda export business

emerged certain change before and after the long holiday. Before holidays, domestic export

players did not give the export offer due to the lower enquiry price. It was said the enquiry prices

were lower than USD 300/mt FOB CMP. After holidays, some producers started up the export

business and offers were around USD 350-360/mt FOB CMP. The enquiry price also went up

slightly, reportedly at USD 310-320/mt FOB CMP.

N.China areas: In The early Feb, liquid soda players in N.China mainly held wait and see attitude

on the market condition. After holidays, the export players offered at USD 360/mt FOB CMP. But

there was certain distance with the enquiry prices, so no deals were done.

E.China areas: In February, the main export players in E.China mainly carried out the long-term

orders. Some producers offered at USD 355/mt FOB CMP. No deals were done.

The solid caustic soda export market

In February, the export market of solid soda was not good and the prices went down continuously.

And the real enquiry was limited. The mainstream offer of 98%-99% flake soda decreased from

USD 520-540/mt FOB CMP to USD 500-510/mt FOB CMP. And the price of USD 490/mt FOB

CMP also heard. 99% pearl soda offers declined from USD 550/mt FOB CMP to USD

530-540/mt FOB CMP. Market players said there was not favorable information supporting the

price up.

EXPORT CAUSTIC SODA NOMINATIONS IN FEBRUARY

Main Harbor Class Low range

USD/MT

Top range

USD/MT Sources from

Tianjin

99% FOB 500 510 Tianjin, Xinjiang Shandong

96% FOB - - Inner Mongolia Tianjin

48%-50% FOB - - Tianjin

Shanghai 99% FOB 510 520

Anhui, Shanghai,Xinjiang, Inner

Mongolia

48%-50% FOB - - Shanghai

Frontier Northwest 99% DAF 490 500 Xinjiang

Page 11



Trade Southwest

96% DAF - - Sichuan Xinjiang

99% DAF 530 550 Sichuan Xinjiang

East 48%-50% FOB 355 360 Jiangsu

Northeast 48%-50% FOB 350 350 Liaoning

Shandong 48%-50% FOB 360 360 Shandong

Shandong 98.5% FOB 530 550 Shandong,

CHINA LIQUID CAUSTIC SODA EXPORT IN JANUARY 2013

To Volume Average prices

Tons USD/MT

Hong Kong 396 212

Taiwan 3,024 389

S. Korea 7,998 189

USA 28,141 248

Australia 81,346 363

India 8,581 345

Others 10,989

Total 140,474

All data sourced from CIQ

Note: * Marked information seems to be deviant

Page 12



Page 13



Note: Average prices of Export Liquid caustic soda are calculated from General Trade.

CHINA SOLID CAUSTIC SODA EXPORTS

Region Country

Jan-13 Jan- Dec 2013

Volume Average

Volume Average

prices prices

Tons USD/MT Tons USD/MT

America

Argentina 47 534 47 534

Antilles - - - -

Barbados - - - -

Belize - - - -

Bolivia - - - -

Brazil 490 529 490 529

Canada 88 627 88 627

Page 14



Chile 828 521 828 521

Colombia 881 546 881 546

Costarica 75 533 75 533

Cuba 75 511 75 511

Dominican Republic 263 572 263 572

Ecuador 230 547 230 547

El Salvador 26 515 26 515

Guatemala 75 476 75 476

Guyana 25 520 25 520

Haiti 200 580 200 580

Honduras 25 550 25 550

Jamaica - - - -

Mexico 86 557 86 557

Nicaragua - - - -

Panama - - - -

Paraguay 315 540 315 540

Peru 1,423 537 1,423 537

Puerto Rico - - - -

Saint Lucia - - - -

Trinidad and Tobago - - - -

United States 952 608 952 608

Uruguay - - - -

Venezuela 144 520 144 520

Total 6,247.00

Africa

Algeria 220 577 220 577

Angola 668 543 668 543

Benin 1,024 560 1,024 560

Botswana - - - -

Burkina Faso - - - -

Cameroon 455 561 455 561

Chad - - - -

Congo - - - -

Cote d'ivoire 1,632 541 1,632 541

Democratic Republic of Congo 289 475 289 475

Page 15



Djibouti 450 507 450 507

Egypt 300 512 300 512

Equatorial Guinea - - - -

Eritrea - - - -

Ethiopia 227 594 227 594

Gabon - - - -

Gambia 100 510 100 510

Ghana 1,899 544 1,899 544

Guinea 253 580 253 580

Kenya 1,137 499 1,137 499

Liberia - - - -

Libya - - - -

Madagascar 1,086 506 1,086 506

Malawi - - - -

Mali 100 575 100 575

Mauritania 363 549 363 549

Mauritius 408 521 408 521

Morocco - - - -

Mozambique 905 486 905 486

Namibia 2,787 572 2,787 572

Niger - - - -

Nigeria 6,108 545 6,108 545

Senegal 775 571 775 571

Seychelles - - - -

Sierra Leone - - - -

Somalia - - - -

South Africa 937 544 937 544

Sudan 320 516 320 516

Suriname - - - -

Tanzania 1,434 521 1,434 521

Togo 1,387 536 1,387 536

Tunisia 22 579 22 579

Zambia - - - -

Zimbabwe 21 534 21 534

Page 16



Total 25,306.00

Europe

Albania - - - -

Belgium - - - -

Bulgaria - - - -

Croatia - - - -

Cyprus - - - -

Czech - - - -

Danmark - - - -

England 96 565 96 565

Estonia - - - -

France - - - -

Georgia 66 520 66 520

Germany - - - -

Greece 138 551 138 551

Iceland - - - -

Ireland - - - -

Italy - - - -

Latvia - - - -

Lithuania - - - -

LA REUNION - - - -

Malta 24 476 24 476

Netherlands - - - -

Norway 66 510 66 510

Poland - - - -

Portugal 70 583 70 583

Rumania 500 515 500 515

Russia 1,439 487 1,439 487

Spain 102 528 102 528

Sweden 48 590 48 590

Switzerland - - - -

Turkey 297 550 297 550

Ukraine 300 550 300 550

White Russia - - - -

Total 3,146.00

Page 17



Oceania

Australia 557 538 557 538

New Zealand 132 573 132 573

Papua New Guinea 72 520 72 520

Solomon islands 432 563 432 563

Total 1,193.00

Asia

Bahrain 48 595 48 595

Bangladesh 2,494 472 2,494 472

Brunei - - - -

Burma 238 576 238 576

Cambodia 200 518 200 518

Hongkong 50 542 50 542

India 75 448 75 448

Indonesia 1,755 528 1,755 528

Iran 128 525 128 525

Iraq - - - -

Israel 96 576 96 576

Japan 124 549 124 549

Jordan - - - -

Kazakhstan 967 484 967 484

N.Korea 514 548 514 548

Kuwait - - - -

Kyrgyzstan 169 490 169 490

Lebanon - - - -

Macao 10 606 10 606

Malaysia 900 503 900 503

Mongolia 75 200 75 200

Nepal - - - -

Korea 262 532 262 532

Oman 130 503 130 503

Pakistan - - - -

Philippine 1,376 530 1,376 530

Qatar - - - -

Saudi Arabia - - - -

Singapore 898 522 898 522

Page 18



Sri Lanka 386 530 386 530

Syria - - - -

Taiwan 196 527 196 527

Tajikistan 113 610 113 610

Thailand 675 513 675 513

Turkmenistan 459 485 459 485

UAE 25 507 25 507

Uzbekistan 2,713 485 2,713 485

Vietnam 3,978 535 3,978 535

Yemen - - - -

Total 19,054.00

Note: * Marked information seems to be deviant


Note: Average prices of Export Solid caustic soda are calculated from General Trade

Downstream market

Industry

Production yield in

Dec 2012

（10K DMT）

Growth

yr-on-yr

Production yield in

Jan- Dec 2012

（10K DMT）

Growth

yr-on-yr

Alumina 304.2 18.9% 3771.5 10.9%

Chemical

Fibre 334.9 11.6% 3811.2 11.8%

Synthetic

detergent 83.4 0.1% 887.7 8.8%

Paper pulp 143 -0.7% - -

Forecast (domestic market)

In February, some chlor alkali players were on the mechanical outages. And some units

increased the rate in the end Feb, mirroring the increase in market supplies. Downstream

demands were still insipid and the export market was also cold. Chlor alkali players want to

increase the offers albeit without huge inventory pressures. However, along with the market

turning better, chlor alkali players would increase the rate. So players expected domestic

caustic soda prices would hard to go up in March due to the increased output.

Page 19



Production news

CHINESE CAUSTIC SODA PLANTS OPERATION

Region Producer Status of Caustic Soda Plant

NE.China Jinhua Chemical Feb, running normally

Shenyang Chemical Feb, running normally

N.China

Tianjin Chemical Plant Feb, running normally

Tianjin Dagu Chemical Feb, running normally

LG Bohai Chemical Feb, running normally

Sinopec Qilu Petrochemical Feb, running normally

Shandong Hengtong Chemical Feb, running at 80% rate

Tangshan Sanyou Chlor-Alkali Feb, running at full rate

Shanxi YuShe Chemical Feb, running normally

Inner Mongolia Yihua Feb, running normally

Weifang Yaxing Feb, running normally

C.China

Henan Shenma Chlor-alkali Feb, running normally

Haohua Yuhang Chemical Feb, running at full rate

Kaifeng Dongda Chemical Feb, running normally

Zhuzhou Chemical Feb, running normally

NW.China

Ningxia Yinglite Chemical Feb, running normally

Chinese salt Jilantai Feb, running at 90% rate

Xinjiang Zhongtai Chemical Feb, running normally

Shaanxi Jintai Chlor-alkali Feb, running at full rate

E.China

Shanghai Chlor-Alkali Feb, running normally

Jiangsu Meilan Feb, running normally

China Salt Changzhou Chemical Feb, running at 60-70% rate

Jiangsu Anbang Electrochemical Feb, running normally

Hangzhou Electrochemical Feb, finished the shutdown

Zhejiang Juhua Group Feb, running at 80% rate

Zhejiang Shangao Chemical Feb, running at 60% rate

S.China Nanning Chemical Feb, running at 50% rate

Southeast Electrochemical Feb, running at full rate

SW.China

Chongqing Tianyuan Feb, on mechanical outage

Zigong Honghe Chemical Feb, running at 90% rate

Sichuan Jinlu Group Feb run at 70%

Page 20



Domestic market

Domestic soda ash market still ran low and flat during last month and in Southwest China,

the price went slightly down by CNY 10-50/mt. Operation rates in this area has dropped to

50% because of tight natural gas supply, while the enormous stock has not been effectively

digested. Northwest origin was still selling at low price, as inventory level was high for

producers. Chlorinated ammonium market ran well, which makes soda ash market hard to

grow.

Region

Average price

market movement

Forecast L-Soda

RMB/mt

D-Soda

RMB/mt

Feb four

weeks ago

Feb four

weeks ago

L D

E.China 1175 1175 1325 1325

Soda ash market in East China went

continuously weak last month. The prevailing

offers were around RMB 1150-1230/mt EXW for

light soda ash. Dense soda ash was offered at

around CNY 1200-1250/mt EXW. Some

producers tried to pull up their offers at the end

of the month to CNY 1400/mt in Zhejiang and

traders mostly held wait and see attitude toward

the market.

↗ ↗

SODA ASH

Page 21



Region

Average price

market movement

Forecast L-Soda

RMB/mt

D-Soda

RMB/mt

Feb four

weeks ago

Feb four

weeks ago

L D

S.China 1365 1365 1450 1450

In South China, the soda ash market behaved

stable last month and transaction price was

kept at former level. In Fujian, the light soda ash

price was around RMB 1380-1400/mt EXW; in

Guangdong, the prices were RMB 1400/mt

EXW and RMB 1450-1500/mt EXW for light

soda ash and dense soda ash respectively.

Tight supply was still the major reason that

pushed up the price and the power seemed like

to be fading out.

N.China 1190 1190 1325 1325

In N.China, soda ash market went flat during

last month and some prices were heard higher.

Local light soda ash was offered at the price of

CNY 1220-1250/mt EXW and dense soda ash

was offered around CNY 1350/mt EXW.

According to analysis, sales pressure was still

big for producers and the inventory level was

high. Later market might keep dropping after a

short break.

NE.China 1340 1341 1450 1450

Soda ash market in NE.China ran

comparatively weak during last month with

seldom lower prices seen on the market. The

prevailing prices were RMB 1330-1380/mt FD

for light soda ash and dense soda ash price

was around RMB 1400-1450/mt FD. Products

from Qinghai Province were seen on the market

at the price of USD 1250-1300/mt FD. The

supply-demand confliction still existed.

Page 22



Region

Average price

market movement

Forecast L-Soda

RMB/mt

D-Soda

RMB/mt

Feb four

weeks ago

Feb four

weeks ago

L D

SW.China 1208 1211 1325 1316

In SW.China, soda ash market did not change

much during last month while the offers were

made higher along with power price. In

Sichuan, the prices were kept around RMB

1150-1200/mt ex-work and RMB 1350/mt

ex-work for light soda ash and dense soda ash

respectively. Former prices in this area have

been long higher than surroundings. With the

import products pouring in, price started to drop

obviously.

C.China 1087 1100 1215 1215

In C.China, soda ash producers made their

offers steady, while some higher prices were

heard. In Henan province, the prices were

around RMB 1150/mt EXW and RMB 1230/mt

EXW for light soda ash and dense soda ash

respectively. In Hunan and Hubei, the price was

at RMB 1150/mt EXW and RMB 1250/mt FD for

light soda ash and dense soda ash respectively.

Traders started to speculate the market as

prices in surroundings were picked up. But

owing to the sluggish demand from end

products, the pick-up price would return to low

level after a short period of time.

Page 23



Region

Average price

market movement

Forecast L-Soda

RMB/mt

D-Soda

RMB/mt

Feb four

weeks ago

Feb four

weeks ago

L D

NW.China 930 942 1000 1008

In NW.China, soda ash market did not change

much during last month and the atmosphere

was still tarnished. Mainstream offers for light

soda ash from Qinghai Province were heard

under CNY 850/mt EXW and price for products

at the same quality were offered at the prices of

CNY 1150/mt ex-work in Xinjiang Province.

Transportation problem has limited the sales

and the inventory level of local producers rose

again. Demand from other areas was sluggish,

thus later market in NW.China will not change

much.

Note:

1 L-Soda: Light soda D-Soda: Dense soda

2 →: stable, ↗:slight increase, ↘: slight drop, ↑: sharp increase, ↓: sharp drop

Soda ash price monitoring

LIGHT SODA ASH

E.China S.China N.China NE.China SW.China C.China NW.China

Feb 8 RMB/mt 1100-1250 1330-1400 1100-1280 1300-1380 1200-1230 1050-1130 830-1030

Feb 14 RMB/mt 1100-1250 1330-1400 1100-1280 1300-1380 1200-1230 1050-1130 830-1030

Feb 21 RMB/mt 1100-1250 1330-1400 1100-1280 1300-1380 1150-1230 1030-1130 830-1030

Feb 28 RMB/mt 1100-1250 1330-1400 1100-1280 1300-1380 1150-1230 1030-1130 830-1030

Page 24



DENSE SODA ASH


Feb 8 RMB/mt 1250-1400 1400-1500 1300-1350 1400-1500 1250-1400 1150-1280 900-1100

Feb 14 RMB/mt 1250-1400 1400-1500 1300-1350 1400-1500 1250-1400 1150-1280 900-1100

Feb 21 RMB/mt 1250-1400 1400-1500 1300-1350 1400-1500 1250-1400 1150-1280 900-1100

Feb 28 RMB/mt 1250-1400 1400-1500 1300-1350 1400-1500 1250-1400 1150-1280 900-1100

(Average price of soda ash from 1st

Jan, 2010 to 28th

Feb, 2013)

Expot Date

Page 25



CHINESE SODA ASH EXPORTS

To 13-Jan 12-Dec Jan-Dec 12

Tons Tons Tons

S. Korea 23176.25 33957 247842.76

Vietnam 28720.72 11925 217648.18

Thailand 12348.8 13487 207558.76

Bangladesh 7754.35 11892 120291.99

Philippines 7353.6 8357 107241.67

Japan 9345.66 3676 68676.14

Malaysia 2506 3675 68127.14

Nigeria 6539.5 2492 45686.25

Yemen 504 1008 5817.75

Indonesia 23840 21499 257096.17

Taiwan 3011 3393 49380.968

Guatemala 330 247 3765.63

Korea 851 1222 35348.205

India 9412.4 9278 106393.684

S. Africa 489.15 864 8747.887

Tanzania - 525 6516.48

Others 17911 11832 158360

Total 154,093 139,328 1,714,500

CHINESE SODA ASH EXPORTS

CHINA SODA ASH* EXPORTS IN JAN, 2013

Trade mode Volume Sum Average prices

Tons USD USD/MT

External Contractors Project - - -

General Trade 153703.296

390

29896358 194.5

Frontier Small Trade 80912 207.5

Total 154093.296 29977270 194.5


Page 26



CHINESE SODA ASH EXPORTS TO KEY REGIONS

2013- JAN

Volume, MT Average price, USD/MT

S. Korea 23176 196.9

Thailand 12349 188.2

Indonesia 23840 192.4

Vietnam 28721 188.6

Japan 9346 207.2

Malaysia 2506 199.8

Korea 851 217.1

Nigeria 6540 200.1

Philippines 7354 189.5

Taiwan 3011 215.9

Others 36400

Total 154093

Page 27



CHINESE DOMESTIC PRICES


Feb 1 RMB/mt 50-300 50-300 0-100 300-500 0-150 0-150 0-100

Feb 5 RMB/mt 50-300 50-300 0-100 300-500 0-150 0-150 0-100

Feb 16 RMB/mt 50-300 50-300 0-100 300-500 0-150 0-150 0-100

Feb 26 RMB/mt 50-300 50-300 0-100 300-500 0-150 0-150 0-100

HYDROCHLORIC ACID PRODUCTION OUTPUT, MT

2012

Jan feb Mar April May Jun Jul Aug Sep Oct Nov Dec

E.China 171471 178619 212895 181571 209168 192752 204791 188255 211863 214822 218085 205606

S.China 45807 60747 88270 106896 81096 99227 100406 101756 114103 111455 111775 107274

N.China 146961 152776 167018 164527 168746 156540 169288 163316 158447 149274 164690 171906

SW.China 26055 32443 37161 8375 34390 37249 33063 38921 36783 37902 42438 39353

NW.China 63452 67246 86641 88589 84126 126811 90363 89091 86026 76322 73414 84720

NE.China 35995 35609 44750 42371 43890 33474 26317 31017 37060 34344 41605 40573

C.China 112198 117931 125206 124525 119680 112741 122293 124903 125970 114102 125530 128208

Total 601938 645372 761940 744422 741096 758795 746519 737257 770249 738222 777539 777640

8800989

Highlights

In February, domestic chlorine market was steady. The producers in N.China and E.China want to

increase the offers. Affected by Spring Festival holidays, some downstream users stopped the

production, mirroring the reduction on chlorine demands. And downstream units resumed the

production after holidays, but CMS, chlorinated paraffin and ECH units still ran at lower level, and

the oversupply condition of chlorine products still existed. Meanwhile, restricted by insipid PVC

market, domestic chlorine market would hard to go up and prices continued to hover below cost line.

CHLORINE

Hydrochloric acid

Page 28


ISSUE NUMBER: 056 March 7th 2013 In the end Feb, domestic chlorine prices stayed at higher level in NE.China. The prevailing prices

were between RMB 600-900/mt ex-work and some producers offered at RMB 1300/mt. Apart from

self-consumption, the commodity chlorine mainly offered to neighboring downstream users. It was

said the coming market would behave steady.

In NW.China, chlorine market hovered at lower level. The prevailing price was between RMB

1-100/mt ex-work and some producers still delivered chlorine products for free. Local chlor alkali

producers ran the units with higher rate, and downstream demands were limited, so most chlor

alkali producers experienced large inventory pressures. It was expected the market would hard to

turn better in the short term.

Chlorine market emerged “M” fluctuations in N.China, especially in Shandong. During Spring

Festival holidays, local downstream users shut down, mirroring the fell sharply in demands and the

reduction in chlorine values. After holidays, chlorine prices rebounded slowly. Approaching to the

end Feb, chlorine values went down again due to the surplus stocks. At present, the prevailing

prices were between RMB 200-600/mt ex-work.

In C.China, chlorine market was watery last month. The lower price was around RMB 100/mt

ex-work and the higher price was between RMB 200-300/mt ex-work. Local production was steady

with enough chlorine supply. After holidays, downstream demands were still cold, and chlorine

market hovered at lower level.

In E.China, chlorine prices continued to go up. In Jiangsu and Zhejiang, the chlorine supply was

limited due to the lower operating rate of chlor alkali units. And the prices increased to RMB

400-700/mt ex-work. In Anhui and Jiangxi, the prices went up to RMB 300-400/mt.

In S.China, chlorine market was steady. The prices were concentrated at RMB 300/mt ex-work.

Chlorine supply was not sufficient due to lower rate of chlor alkali units. There was not favorable

support on price increasing due to tonnages from other areas.

In SW.China, chlorine market was unchanged. The lower price was between RMB 50-100/mt

ex-work and higher price was around RMB 300/mt ex-work. Downstream demands were insipid and

chlorine market behaved watery. It was expected chlorine market would remain steady in the

coming days.

CHLORINE DOMESTIC PRICES


Feb 1 RMB/mt 200-500 300-400 200-600 600-1300 0-300 150-250 0-200

Feb 5 RMB/mt 200-500 300-400 10-500 600-1300 0-300 150-250 0-200

Feb 16 RMB/mt 200-500 300-400 10-400 600-1300 0-300 150-250 0-200

Feb 26 RMB/mt 400-700 300-400 200-600 600-1300 50-300 100-400 0-200

Page 29



Downstream Sectors

Products Company name Operation rate

Epoxy chloropropane

Sinopec Qilu Petrochemical 50%

Jiangsu Yangnong 60%

Shandong Bohui 70%

Baling Petrochemical 100%

Huaxiang Chemical shutdown

Zhonghai Fine 70%

Tianjin Chemical shutdown

Jiangsu Anpon shutdown

Shandong Xinyue shutdown

Chlorinated methane

Company name Operation rate

Jiangsu Meilan 40-50%

Zhejiang Juhua 50%

Jiangsu Liwen 80%

Shandong Dongyue 70%

Shandong Haihua 60%

Shandong Jinling 50%

Luxi Chemical 50%

Chongqing Tianyuan 100%

Zigong Honghe 50%

Luzhou Xinfu 100%

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Documents

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