Oxalic acid

Oxalic Acid Recent Market Dynamics Intelligence1. **Price Trends** - The mainstream price of oxalic acid in the domestic market has recently shown a slight upward fluctuation. Taking the East China region as an example, the price of industrial-grade oxalic acid has increased from 4,500 - 4,600 yuan/ton at the beginning of the month to the current 4,650 - 4,750 yuan/ton, representing an increase of approximately 3.3% - 3.5%. - In the export market, oxalic acid prices have risen in line with the domestic market, with the FOB China main port price increasing from 620 - 630 USD/ton at the beginning of the month to the current 640 - 650 USD/ton.2. **Supply Situation** - Recently, the operating status of some oxalic acid production facilities has remained stable, with operating rates maintained at a relatively high level of approximately 80% - 85%. However, a few enterprises have experienced brief production load reductions due to equipment maintenance or raw material supply issues, which has had a certain impact on the overall market supply but has not caused a severe shortage. - The oxalic acid industry's production capacity is relatively concentrated, with leading enterprises occupying a large market share. Their production adjustments have a significant impact on market supply. Currently, leading enterprises are basically maintaining normal production to meet domestic and international order demands.3. **Demand Situation** - Regarding domestic demand, oxalic acid is widely used in the pharmaceutical, metallurgical, and rare earth industries. Recently, demand for oxalic acid in the pharmaceutical industry has grown steadily, with some pharmaceutical companies increasing their procurement volumes to meet production plans. Demand from the metallurgical and rare earth industries has also increased due to the recovery of downstream markets, although the growth rate is relatively modest. - Export demand is performing well. As the international market gradually recovers, demand from foreign customers for oxalic acid has increased. In particular, demand in Southeast Asia and South Asia is trending upward, leading to an increase in export order volumes.4. **Cost Aspects** - The main raw materials for oxalic acid are coke and sulfuric acid. Recently, coke market prices have fluctuated slightly, showing a stable to slightly rising trend, thereby strengthening cost support for oxalic acid. Sulfuric acid prices have risen to a certain extent due to the increase in raw material sulfur prices, further pushing up the production costs of oxalic acid. - In terms of transportation costs, fluctuations in oil prices and adjustments to logistics policies in some regions have led to an increase in oxalic acid transportation fees, which has also affected the market price of oxalic acid to some extent.5. **Inventory Situation** - Producer inventories are at a moderate level. Some enterprises have appropriately increased inventory reserves to cope with growing market demand. However, overall inventory pressure is not significant, and enterprises can adjust production and shipping schedules according to order situations. - Trader inventories are relatively low. Due to a relatively optimistic outlook for the future market, traders' procurement enthusiasm is high, and inventory turnover speed has accelerated.Analysis and Judgment1. **Reasons for Price Increase** - Cost push is an important factor in the price increase of oxalic acid. The rise in prices of coke and sulfuric acid has increased the production costs of oxalic acid, prompting enterprises to raise product prices to ensure profit margins. - Demand growth also provides support for prices. Increased demand from domestic industries such as pharmaceuticals, metallurgy, and rare earths, along with the growth in export order volumes, has tightened the supply and demand relationship in the oxalic acid market, driving price increases.2. **Market Supply and Demand Structure** - Currently, the supply and demand in the oxalic acid market are basically balanced, but there is some uncertainty on the supply side. Production fluctuations in a few enterprises may affect market supply, while stable growth on the demand side keeps demand for oxalic acid robust. - The good performance of the export market has further alleviated domestic market supply pressure and also provided some room for price increases.Forecast1. **Price Trend Forecast** - In the short term, oxalic acid prices are expected to continue a slight upward trend. Cost support and demand growth will remain the main factors driving price increases. However, considering that the market supply and demand are basically balanced, the magnitude of price increases may be relatively limited. - In the medium to long term, if raw material prices continue to rise or demand further increases, oxalic acid prices may continue to go up. However, if market supply increases significantly or demand growth slows down, prices may experience a correction.2. **Market Supply and Demand Forecast** - In terms of supply, with the stable operation of production facilities and the completion of maintenance by some enterprises, the market supply of oxalic acid is expected to gradually increase. However, production adjustments by leading enterprises will still have a significant impact on market supply. - In terms of demand, demand for oxalic acid from domestic industries such as pharmaceuticals, metallurgy, and rare earths is expected to continue stable growth, and the export market will also maintain a good trend. Overall, the demand for oxalic acid is expected to show a pattern of stable growth.