Commodity Index: On September 19, the Polyaluminium Chloride Commodity Index was 108.11, which was the same as yesterday. It was 0.83% lower than the peak of 109.01 points in the cycle (2019-08-28), and 7.15% higher than the low of 100.90 points on April 09, 2019. (Note: Period refers to 2019-04-01 to date)

Price quotation: Among the mainstream manufacturers monitored by business associations, after the price of polyaluminium chloride rose significantly in the second half of August, the price of polyaluminium chloride remained relatively stable from the first half of September to the middle of September. On September 1st, the mainstream quotation of domestic polyaluminium chloride market was about 2000 yuan/ton, and on September 20th, the mainstream quotation was 2000 yuan/ton. The market was stable. According to the monitoring data of the commercial association (100ppi.com), the mainstream quotation in the domestic market of polyaluminium chloride is 1850-2200 yuan/ton for solid polyaluminium chloride (industrial grade, content (>28%) with tax, 350-500 yuan/ton for liquid (industrial grade, content 10-12%) with tax, and 100-200 yuan/ton for solid in August. The price range was maintained in the first half of this month, with the liquid rising by 50 yuan/ton.

Industry chain: In recent years, the price of hydrochloric acid in upstream raw materials of polyaluminium chloride has risen sharply this week. According to the monitoring data of business associations, the mainstream price of hydrochloric acid market was 123.33 yuan/ton on the 1st day and 140 yuan/ton on the 20th day, with an increase of about 13.5%. The downstream demand for polyaluminium chloride is stable. At present, the polyaluminium chloride manufacturer in Gongyi, Henan Province is still in the shutdown period. It relies on stock delivery to give priority to the consumption of old downstream customers. The supply of new customers is affected. Because the shutdown has lasted for more than a month, the inventory of the manufacturer is more tight than the previous period.

Industry: 1. Notice of shutdown: In late July, the water purification and environmental protection enterprises of Yongan Road Street Office in Gongyi City, Henan Province, received the “Notice of shutdown” recently. The notice requests: According to the analysis of environmental pollution situation and future polluted weather situation in the whole city, the municipal attack and fortification office requests all enterprises in-depth control to stop production and control before acceptance. Production can be restored after dispatching or acceptance according to key problems. This week, local manufacturers said they were allowed to resume production for 10 days, and asked to restart production from the 15th. 2. Stop production again after resumption of production: resumption of production in August for 10 days and resumption of production on 15 days. According to the manufacturer, the suspension was more affected by the National Games held in Zhengzhou on 8 September. The local environmental protection inspection was strict. All local enterprises in Gongyi were asked to stop production for environmental protection management and maintenance. 3. After the National Games on September 8, the local manufacturers were not notified of the start of construction. Strict environmental protection inspections were under way. According to the manufacturers, the current shortage of goods was aggravated after the National Day of the Eleventh National Day.

Attachment: Gongyi City, Henan Province, issued a circular on the deep management of enterprise shutdown (see below):

Future forecast: Business association analysis shows that due to the impact of environmental shutdown, the inventory of factories in Gongyi area of Henan Province, one of the main production areas, has become tense. Although inventory priority is given to old customers, it is difficult for new customers to seek goods. Prices for new customers have increased significantly in the early period, but in the later period, with the increase of supply tension, the price of old customers has been excluded. Possibility of lattice up-regulation.