TCCA SDIC Market Analysis Research Outlook Broadcast 2021
"Why Prices increased again?" "Is it possible to get a lower price after the Chinese New Year?" A lot of buyers and distributors of TCCA, SDIC and Calcium Hypochlorite came to ask AQUACLEAR. This is really a problem occured for the last few months.
Why TCCA, SDIC and Calcium Hypochlorite prices are keeping rising, even prices increased everyweek? From our point of view, the major problem is that market demand is far more exceeds the supply.
The US Chlorine plants exploded contributed to the short supply
"LAKE CHARLES, La. (AP) — A fire at a Louisiana chlorine plant erupted with thick, billowing smoke Thursday after Hurricane Laura plowed through part of the country’s petrochemical corridor with storm surges and fierce wind, forcing residents around the plant to shelter in their homes." (AP NEWS, Aug 23,2020)
“SEVERAL people have been injured at an Optima Chemicals plant as chlorinated dry bleach and methanol exploded, forcing a shelter-in-place order.The blast took place at the Belle, West Virgina, site just at roughly 10.30pm on Tuesday night, according to the Kanawha County Commission.” (The US Sun, Dec 9,2020)
As we can see, two major Chlorine plant in the USA has been exploded due to hurricane or other reason, that make the supply of Chlorine to US, Latin and South American market are extremely tight, as thoese two plants contributed to more than 40% production of US chlorine output. Owing to these reasons, all of those order which was placed to US has now turned to China, as they have ordered 90% chlorine products in the market now for the next 6 months.
China Chlorine Output has dropped 30% due to tightened Environmental Protection Policy
What is the situation here in China, from our point of view here at AQUACLEAR, due to the strict environmental protection policy raised three years ago, more than 5 Chlorine plants which are TCCA SDIC producers are forced to close or stop production for their discapability to treat those chemical waste water. The Chlorine output has droped by 30% here in China.
Ocean Freight Rising Weekly
What's more, as we all see that due to the COVID-19 pandemic, the world economy is not working at full strength, so, most containers are shipped out of China, but the ship owner can not take goods back by their container, that contribute to a weekly rising Ocean Freight for the whole year of 2020.
Will the situation be changed after Chinese New Year?
From our point of view at AQUACLEAR, we are not optimitics to the Chlorine market in 2021, as the supply and demand problem are not be able to solved in a short period, and the freight are not be able to decline since the world economy recovery is still unknown in most part of the world due to COVID-19 pandemic.
What will be the best Solutions?
If you happened to engaged in contracts, we suggest you to book your orders as early as possible, prices are not be able to reduced, but by big chance it will increase again soon after Chinese New Year, as a lot of customers has postponed their orders by hoping to get a lower rate after the Chinese holiday, they will all seek to confirm those orders after the holiday, demands will suddenly increase again soon in late Feburary or early March.
Wuhan AquaClear Technology Co., Ltd. is a leading producer and exporter of Swimming Pool, Spa and Sauna Chemicals(Balancers, Disinfectants, Floccluents, Algaecide, Water Testing)here in China.Among which we are the largest producer of Calcium Hypochlorite, TCCA, SDIC. Our annual output is 35000MT, ranking NO.1 in China. Our Brand Name is AquaClear® which is known world-wide.Our plant adopts DCS system which ensure our products of high and stable quality and environmental friendly. Once buyer imported our product, 100% of them continued ordering and establish a long-term business with us.Based on values of Honesty and Commitments, we are proudly to serve our clients over 14 years.We always believe that your success will be our business.