Analysis of domestic market

It is understood that today's ** excess capacity, downstream demand is low, ** low-cost operation is still one of the focus topics that plague the entire market. According to analysis, the following six factors are the main factors leading to this situation.

1. The production capacity of the country's ** has been continuously increasing. To ensure the balance between production and sales, the operating rate of various manufacturers has been low;

2. The high price of raw material ** has caused the increase in the cost of acetic acid producers. Most manufacturers have been unable to reduce prices and reduce inventory pressure.

3, ** International market transaction prices fell, India's imports decreased, the original exports only Jiangsu Shuangshi running, and the amount of exports decreased significantly, in September 2012 exports only 10,000 tons. International demand has decreased and domestic trade pressure has increased. Even though many import and export traders are paying attention to export, this has not been achieved due to factors such as transportation and price.

4. In the face of a sluggish domestic market, the cost and financial pressure of each ** production company is relatively large;

5.** The acid content of chemical fertilizers accounted for about 65.3%, of which high-density phosphorus compound fertilizer accounted for 81.8%; low-level phosphate fertilizer accounted for 10.6%, other chemical fertilizers accounted for 7.6%, and the export of phosphate compound fertilizer was greatly reduced. Growth; Affected by the slowdown in economic development, production of other industries besides chemical fertilizers grows slowly, and the amount of acid is reduced simultaneously; the amount of acid used in other industries accounts for 34.7%. Titanium dioxide, caprolactam, and hydrofluoric acid production have grown slowly this year, and other industries have increased. The speed is also slowing down. Therefore, the amount of acid other than fertilizers is only slightly increasing.

6, this year ** market seems to have become the world of smelting acid, with a flexible price, large output supply, small cost of by-product cost accounted for a large part of the downstream market, resulting in oxalic acid and ore acid has been cracking survival;

At present, the vast majority of the market is occupied by flue gas acid, but large-scale flue gas acid enterprises are also engaged in an intangible price war, natural selection, and the survival of the fittest is intensifying. The big curtain of the era of meager profits of Big Agriculture and Chemicals has been pulled up, and mergers, cooperation, environmental protection, new technologies, and intensive development have led to the gradual standardization of bulk commodities.