Since the fourth quarter of the China Drying Network News, chromium salt downstream companies have stopped production and restricted production, resulting in a serious market shrinkage, chromium salt market prices remained at 9500 ~ 11000 yuan (ton price, the same below), compared to the previous three quarters decreased by 1000 ~ 1,500 yuan. On the one hand, some chromium salt companies have overestimated the market outlook, blindly increased the operating rate, leading to the oversupply of the market; on the other hand, due to the increasingly fierce competition in the chromium salt market, some companies have to sacrifice sales at a loss in order to save the product price. Repression, and even counterfeit incidents, formed vicious competition among peers. Although at the China Salt Society meeting held in October this year, many chrome salt entrepreneurs negotiated limits on product prices and safeguarded the overall interests of the chromium salt industry, but these measures are still difficult to change the market downturn.
The lack of chromium ore resources has caused the production cost of chromium salts to remain high. The main raw material of chromium salt is chromium ore. At present, due to the scarcity of chromium ore resources in China, the scale of the deposits is small and scattered, and it is located in remote mountainous areas. The transportation is extremely inconvenient, and the annual production of chromium ore accounts for only about 15% of the production of chromium salt enterprises. Therefore, more than 80% of the chromium ore produced by domestic chromium salt production companies depends on imports. According to statistics, the domestic chromium salt production imports chrome ore from 700,000 to 800,000 tons per year, and the price is between 5,600 and 6,500 yuan. Under the severe circumstances of the current downturn in the international market, chromium ore, the main raw material of chromium salt, is still not sold at a low price, while the price of chromium salt products continues to decline, making the chromium salt industry struggling in the cracks and suffering.
The export of downstream companies was hindered and the chromium salt market shrank. Due to the dual impact of the European debt crisis and state regulation of real estate policies, downstream companies such as electroplating, metal chrome, printing and dyeing of chromium salts have been blocked, and product prices have continued to decline. Many companies have stopped production and restricted production. Experts said that since the European debt crisis, the market for metal chromium has been weak and prices have been falling. As far as the current market is concerned, some manufacturers and agents are not confident enough about the market of chromium. Electroplating and printing and dyeing products are also subject to a double impact, with a significant reduction in export volume and a drop in product prices.
Due to the above reasons, the chromium salt market has severely shrunk, the sales of chromium salt products have been sluggish, and prices have continued to decline. Since September last year, sodium dichromate dropped from 18,500 yuan to 9,500 yuan, chromic anhydride dropped from 36,000 yuan to 25,000 yuan, and chromium green fell from 39,000 yuan to 27,000 yuan, a decrease of more than 30%. Chromium salt companies have suffered as a result of the thin profits of chromium salt companies and their loss-making operations, together with the economic pressure caused by the slow sales of products and the uncertainty of the chromium salt market.
Since the fourth quarter, affected by the country’s domestic demand-pulling policy, some chromium salt companies that had previously stopped production and restricted production have been greatly encouraged. They have overestimated the market and started to resume production. According to statistics of the Chromium Salt Industry Association, more than 20 manufacturing companies across the country have a total capacity of 300,000 tons, but the current market demand for chromium salts only accounts for 60% to 70% of the total capacity, and the competition is even fiercer. Therefore, there have been incidents in which some companies disrupted the order of the chromium salt industry, such as counterfeiting and sales at a loss. For example, some companies shoddy and pretend to be brand-name products and wantonly lower their prices. The occurrence of these behaviors has exacerbated the instability of the chromium salt market, making the post-chromium salt market increasingly unpleasant.
Insufficient market support, chromium salt manufacturers face a dilemma. After the China Chromium Salt Branch of the Inorganic Salt Association was held, many chromium salt manufacturers actively responded to the meeting requirements, form a unified alliance with each other, implement limited production and price protection, and jointly safeguard the overall interests of the chromium salt industry. Recently, all the chromium salt manufacturers have expressed the same slogan and jointly raised the price of chromium salt products. The price has generally risen by 500 to 1,000 yuan over the previous period. However, due to the weak demand in the downstream market, such as ferrochrome industry operating rate of less than 70%, the price of ferrochromium is still falling all the way; the operating rate of electroplating, printing and dyeing industries is also less than 80%. On the whole, the support of the market is not enough, and the chromium salt market is in an embarrassing situation with no price and no market.
According to the experts of the chromium salt branch, chromium salts are regarded as one of the 8 most competitive resource raw materials and are widely used in metallurgy, tanning, pigments, dyes, spices, coinage, medicine, and wood preservation. industry. Nowadays, with the development of science and technology, its scope of use has rapidly expanded into high-tech fields such as aerospace, military, anti-counterfeiting and new materials, and has played an important role in national production and national defense construction. However, in the face of such a severe market situation, many chromium salt companies are still struggling to maintain.
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