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In 2006, the domestic chloroacetic acid industry suffered from the difficulties brought about by the market's concentrated production expansion and suffered the baptism of disorderly competition. The weak links in the upstream and downstream industry chains made the chloroacetic acid industry unable to keep up with the unpredictability of the market. The role of chloroacetic acid companies is also facing the relentless fight, the era of low profit chloroacetic acid has arrived. It is expected that by 2007, the market will still not be optimistic and the price war will continue.
During the period from 2004 to the first half of 2005, the chloroacetic acid market was driven by the downstream demand and the overall domestic market was in short supply. The prices showed an upward trend. The highest price could reach 10,000 yuan (t price, the same below), and the lowest price was also close to 7000. yuan. With the stimulation of large profit margins, domestic companies have newly built or expanded production on the original scale. After intensive production expansion that lasted from half a year to one year, the production capacity of chloroacetic acid in China quickly expanded in 2006. As of October 2006, the production capacity of chloroacetic acid companies had increased to 476,500 tons, and the actual output was 330,000 tons. . In the second half of 2006, the newly added chloroacetic acid production capacity was gradually put on the market, making the already fragile domestic market indiscriminate, and the price war started.
2006 was the most sluggish market for chloroacetic acid, especially in July-September; the downstream market demand for chloroacetic acid was sluggish, and the chloroacetic acid enterprises in North China were trapped in severe shutdown due to cost and inventory pressure, and the operating rate was only maintained at 40. About 5% to 50%, but the chloracetic acid enterprises in East China have stopped producing and limiting production. In the price war last year, the most tragic thing was the domestic production of chloroacetic acid using acetic anhydride catalytic method. The acetic anhydride method chloroacetic acid is known for its primary monochloroacetic acid content of more than 98% and is well-known to downstream high-end users, but acetic anhydride chloroacetic acid companies have suffered from this year's market conditions: to stabilize downstream customers and to clean up inventory pressure The acetic anhydride law firm reluctantly flattened the sales price with the traditional sulfur, and the minimum price was reduced to 5,700 yuan. This price is the cost price of the glacial acetic acid purchase price of 5,300 yuan and the liquid chlorine purchase price of 1,300 yuan. . Loss of shipments often occurs, making the acetic anhydride chloroacetic acid project's investment return rate low, the recovery period of funds is expected to increase, and make ends meet.
Based on the comparison between the cost of chloroacetic acid catalyzed by acetic anhydride catalyzed by chloroacetic acid in North China and the catalysis of chloroacetic acid in North China from January to October 2006, and the market sales price as the basic data, the cost price and sales price of chloroacetic acid in East China were very high. Close to, even in the four months of March, May, June and July of 2006, the price inversion of sales prices below cost prices shows that this year's profitability of acetic anhydride chloroacetic acid companies is not good enough to protect costs. Even operating at a loss, although the cost price of chloroacetic acid in North China is lower than its sales price, in the period from May to July of 2006, the prices of the two products were far from one another.
The ups and downs of raw material prices have added to the already depressed market. The liquid nitrogen market has large fluctuations. Affected by the climate, last year, crop pests were not very serious. Unstable start-up of pesticide companies led to large fluctuations in the liquid chlorine market. In 2006, the liquid nitrogen market sold at the lowest price of 600 to 800 yuan tofu, while the highest price also sold 1800 to 1900 yuan in the price of gold, ranging from 1,000 to 1,200 yuan. This brought great inconvenience to the original procurement of chloroacetic acid enterprises, and also formed a severe test for the market resilience of chloroacetic acid enterprises. The price of glacial acetic acid produced by raw materials did not change much. From January to October 2006, the average price of glacial acetic acid in East China was 5,351 yuan, and the average price of glacial acetic acid in North China was 5,290 yuan.
The dominance of small-scale operations in the chloroacetic acid industry is another reason why the market is vulnerable. At present, there are only 14 companies with a production capacity of 10,000 tons or more of chloroacetic acid in China. Their production capacity accounts for about 65% of the total production capacity, while about 0.5 million to 1 million tons of enterprises are about 20, and the production capacity is 0. More than 30 million tons of companies have more than 30 statistics.
In 2007, the chloroacetic acid market was not optimistic. Although some of the glacial acetic acid industry has been expanded this year, glacial acetic acid prices may have a slight downward trend, but the price uncertainty of the domestic liquid nitrogen market makes the regional price change of chloroacetic acid products even more serious, coupled with severe expansion of chloroacetic acid companies. With the increase of social circulation brought about by production, the era of low profit for chloroacetic acid products has only just begun.
During the period from 2004 to the first half of 2005, the chloroacetic acid market was driven by the downstream demand and the overall domestic market was in short supply. The prices showed an upward trend. The highest price could reach 10,000 yuan (t price, the same below), and the lowest price was also close to 7000. yuan. With the stimulation of large profit margins, domestic companies have newly built or expanded production on the original scale. After intensive production expansion that lasted from half a year to one year, the production capacity of chloroacetic acid in China quickly expanded in 2006. As of October 2006, the production capacity of chloroacetic acid companies had increased to 476,500 tons, and the actual output was 330,000 tons. . In the second half of 2006, the newly added chloroacetic acid production capacity was gradually put on the market, making the already fragile domestic market indiscriminate, and the price war started.
2006 was the most sluggish market for chloroacetic acid, especially in July-September; the downstream market demand for chloroacetic acid was sluggish, and the chloroacetic acid enterprises in North China were trapped in severe shutdown due to cost and inventory pressure, and the operating rate was only maintained at 40. About 5% to 50%, but the chloracetic acid enterprises in East China have stopped producing and limiting production. In the price war last year, the most tragic thing was the domestic production of chloroacetic acid using acetic anhydride catalytic method. The acetic anhydride method chloroacetic acid is known for its primary monochloroacetic acid content of more than 98% and is well-known to downstream high-end users, but acetic anhydride chloroacetic acid companies have suffered from this year's market conditions: to stabilize downstream customers and to clean up inventory pressure The acetic anhydride law firm reluctantly flattened the sales price with the traditional sulfur, and the minimum price was reduced to 5,700 yuan. This price is the cost price of the glacial acetic acid purchase price of 5,300 yuan and the liquid chlorine purchase price of 1,300 yuan. . Loss of shipments often occurs, making the acetic anhydride chloroacetic acid project's investment return rate low, the recovery period of funds is expected to increase, and make ends meet.
Based on the comparison between the cost of chloroacetic acid catalyzed by acetic anhydride catalyzed by chloroacetic acid in North China and the catalysis of chloroacetic acid in North China from January to October 2006, and the market sales price as the basic data, the cost price and sales price of chloroacetic acid in East China were very high. Close to, even in the four months of March, May, June and July of 2006, the price inversion of sales prices below cost prices shows that this year's profitability of acetic anhydride chloroacetic acid companies is not good enough to protect costs. Even operating at a loss, although the cost price of chloroacetic acid in North China is lower than its sales price, in the period from May to July of 2006, the prices of the two products were far from one another.
The ups and downs of raw material prices have added to the already depressed market. The liquid nitrogen market has large fluctuations. Affected by the climate, last year, crop pests were not very serious. Unstable start-up of pesticide companies led to large fluctuations in the liquid chlorine market. In 2006, the liquid nitrogen market sold at the lowest price of 600 to 800 yuan tofu, while the highest price also sold 1800 to 1900 yuan in the price of gold, ranging from 1,000 to 1,200 yuan. This brought great inconvenience to the original procurement of chloroacetic acid enterprises, and also formed a severe test for the market resilience of chloroacetic acid enterprises. The price of glacial acetic acid produced by raw materials did not change much. From January to October 2006, the average price of glacial acetic acid in East China was 5,351 yuan, and the average price of glacial acetic acid in North China was 5,290 yuan.
The dominance of small-scale operations in the chloroacetic acid industry is another reason why the market is vulnerable. At present, there are only 14 companies with a production capacity of 10,000 tons or more of chloroacetic acid in China. Their production capacity accounts for about 65% of the total production capacity, while about 0.5 million to 1 million tons of enterprises are about 20, and the production capacity is 0. More than 30 million tons of companies have more than 30 statistics.
In 2007, the chloroacetic acid market was not optimistic. Although some of the glacial acetic acid industry has been expanded this year, glacial acetic acid prices may have a slight downward trend, but the price uncertainty of the domestic liquid nitrogen market makes the regional price change of chloroacetic acid products even more serious, coupled with severe expansion of chloroacetic acid companies. With the increase of social circulation brought about by production, the era of low profit for chloroacetic acid products has only just begun.
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