Chlorinated Paraffin Price Is Pushing By The High Liquid Chlorine Price

Driven by the demand of downstream chlorine consumption industry and the impact of the shutdown of 630,000 tons of chlor-alkali plant in Shandong Xinfa, the liquid chlorine Market in Shandong, Hebei, Henan and Jiangsu has been rising continuously, with a relatively fast growth rate and a relatively long duration of high level. Taking Shandong market as an example, the mainstream ex-works price of liquid chlorine in local tanker is ¥850-1000 yuan/mt, which is  ¥1275 yuan / mt higher than ¥-350 yuan/mt, the closing price on September 20.


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Although liquid paraffin accounts for a large proportion of the cost of chlorinated paraffin, the change of market price of liquid chlorine has a greater impact on the cost of chlorinated paraffin because of liquid paraffin price's frequent fluctuation and its uneasy storage.  Relatively speaking, At the beginning of the rising market in liquid chlorine market, driven by demand and bullish atmosphere, chlorinated paraffin manufacturers have a higher probability of price follow-up and smooth sales. At the end of the rising market in liquid chlorine market, downstream conflicting sentiment accompanied by increasing cost pressure, chlorinated paraffin manufacturers are facing double pressure of sales and cost.

 

As can be seen from the chart above, chlorinated paraffin manufacturers are in a loss situation at present. Taking Jiangsu market as an example, the average gross profit of local manufacturers in October is -293.13 yuan/mt, the highest point is -250 yuan/mt, and the lowest value is -400 yuan/mt. Other regions are also in a loss situation. The loss time is long, and the liquid chlorine market has no obvious signs of decline. At the end of October, some small chlorinated paraffin lines stopped to avoid loss.

 

The price change of liquid chlorine market is still the main factor affecting the chlorinated paraffin Market in November. Whether the new chlor-alkali plant in Shandong Province will be restarted has attracted much attention. If the liquid chlorine market continues to stay high, the  chlorinated paraffin price might continue to rise.

 

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