European HCl market tightens, extent dependent on grade

LONDON (ICIS)–Availability in the European hydrochloric acid (HCl) market tightened for technical and higher concentrations in mid-August, with prices varying widely depending on the grade.

A number of unplanned shutdowns have occurred in the European chloralkali market, according to sources, which has tightened availability significantly, particularly for 33-35% concentration HCl.

One producer is already sold out of HCl in Europe, according to a source, although the seller involved could not be confirmed.

As a result, 35% concentration HCl prices in Iberia were quoted at levels as high as €235/tonne FD (free delivered), putting them at a significant increase against July.

Prices as high as €200/tonne FD for technical grade HCl were also quoted in Spain, but could not be widely confirmed, with the Iberian and Mediterranean market both tightening on the back of lower availability from European producers.

“[The price] depends – [at the] beginning of the month it was near €200/tonne, but [there is] now more availability,” one distributor noted.

Iberian prices for HCl had already risen in late July, from an average of €82.5/tonne FD to €97.5/tonne FD.

In France, prices for food grade HCl were between €55-70/tonne FD, according to sources, with the majority of business settled on a long-term basis and not affected by short-term fluctuations in supply and demand. Prices for 30% concentration were quoted in a similar range, with higher grades between €100-140/tonne FD, according to sources.

“The high grade market is quite tense,” one source noted.

Technical grade prices in Portugal were quoted in a range between €80-120/tonne FD.

The weaker economic outlook in Europe has impacted chemical demand, which has reduced downstream consumption of HCl for at least some buyers, although it has had a minimal impact on those contracted on a yearly basis.

“[There is] not much confidence; the market is slowing down [which] creates a lot of pressure on producers,” one distributor said.

However, this has been outweighed by lower availability for HCl and the European market is still tighter overall.

The market for lower concentration HCl was longer, with sources seeing good availability for 30% HCl in France and 32% in the UK in July, although the cause of this is unclear.

“I think supply [is] outstripping demand; I’m not entirely convinced all in balance, [there is] a lot floating about,” one UK distributor noted regarding 32% concentration HCl in late July.

A French distributor also noted that the market for 30% concentration was long, although those for 33% and higher grades are significantly tighter.

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