September 2012** Market Analysis

According to relevant data, the domestic market rebounded in September. In late September, the local markets began to experience a sluggish trend in the previous period and quickly went crazy. At the beginning of the month, the average ex-factory price of domestic enterprises was around 191 yuan/ton. By the end of the month, the average domestic price had risen to around 458 yuan/ton, with an overall increase of 139.12%. The current price has dropped by 49.54% year-on-year.

There is a certain difference in the current domestic price quotes in various regions. Northeast China is quoting at the domestic high level with its own geographic advantage. Currently, the quotation is around 1300 yuan/ton, and the Shandong region is a large chlor-alkali producing province. The current quotation is more than 500-600 yuan/ton. Around, the price increase was 500%-600% higher than the previous period.

Market analysis: Since January and September, most chlor-alkali enterprises have been de-stocking. Affected by the continuous fall in the price of caustic soda, the “alkali-chlorinated” situation began to change. Especially in late September, the company’s inventory has continued to ease, and the market supply has been increasing. In normal conditions; Second, as the weather gradually turns cooler, the downstream demand has improved, and the operating rate of chloroacetic acid, chlorinated paraffin and other products has increased, the demand for ** has increased, and the market in September has skyrocketed. The large amount of product consumption has played a positive role; Third, eleven small holiday soon ushered in, and more stockpiles before the holiday of the downstream factories, is also an advantage to boost the ** market; Fourth, ** is determined by its own high-risk nature, transportation The impact of factors such as regulations on hazardous chemicals management has led to a large regional price differential in China.

Market outlook: The current market conditions have improved compared to the previous period, but the actual downstream demand has not been fully liberalized. Analyst Zhou Yao, an analyst at Business Community Chemicals, believes that the market after a narrow rise will take some time to digest. It is expected that the latter period* * The market will continue to consolidate.

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