Recently, the price trend of the industrial salt market has attracted widespread attention. As the basic raw material for many industries such as chemical, pharmaceutical, and food, the price fluctuation of industrial salt has an important impact on the production costs and market prices of various industries. According to the latest data, the price of industrial salt has fluctuated significantly per ton. What is the reason behind this? What will be the future price trend? This article will analyze this in detail.

Current situation of price fluctuations

In the first half of 2024, the market price of industrial salt fluctuated between US$100 and US$150 per ton. This price range has increased compared with the same period last year, mainly affected by the following factors:

1. Rising production costs: With the rise in global energy prices, the production cost of industrial salt has also increased accordingly. The mining and purification process of sea salt and well salt requires a lot of energy, and the rise in energy prices directly pushes up production costs.

2. Changes in supply and demand: Due to environmental protection rectification and production capacity restrictions of industrial salt production enterprises in some regions, the market supply has decreased. At the same time, economic recovery has led to an increase in demand for industrial salt in industries such as chemical and food, and the imbalance between supply and demand has led to price increases.

3. Impact of the international market: In the international market, policy changes and rising logistics costs in major industrial salt exporting countries have also had an impact on global industrial salt prices. In particular, restrictions on the export of salt products in some countries have led to tight supply in the international market.

Market demand and supply analysis

Demand side:

- Chemical industry: Industrial salt is an important raw material for the chlor-alkali industry, and the production of chlorine and sodium hydroxide directly depends on industrial salt. With the increase in global demand for products such as PVC and bleach, the demand for industrial salt in the chemical industry remains strong.

- Food industry: Food-grade industrial salt is further processed and widely used in food processing, condiment manufacturing and other fields. The stable demand of the food industry provides solid support for the industrial salt market.

- Water treatment: The demand for industrial salt for softened water and sewage treatment is also growing, especially in areas where the industrialization process is accelerating.

Supply side:

- Environmental protection policy: Many countries and regions have strengthened environmental protection supervision on the exploitation of mineral resources, resulting in some industrial salt production enterprises limiting or even stopping production, and tightening market supply.

- Natural disasters: Some salt-producing areas have been affected by natural disasters, such as floods and droughts, which have affected the production of sea salt and well salt.

Future price trend forecast

Combining the above factors, there is a certain degree of uncertainty in the future price trend of industrial salt, but it can be predicted from the following aspects:

1. The impact of energy prices: If global energy prices continue to rise, the production cost of industrial salt will further increase, and the price may remain high or continue to rise.

2. Changes in supply and demand balance: If market demand continues to grow and supply does not increase significantly, prices will maintain an upward trend. However, if production capacity is restored or new supply enters the market, prices may fall back.

3. The impact of policy changes: Adjustments in various countries' industrial salt production and export policies will also have an important impact on market prices. In particular, the further implementation of environmental protection policies will have a long-term impact on the supply side.

At present, the market price of industrial salt fluctuates between US$100 and US$150 per ton, affected by multiple factors such as production costs, supply and demand relations, and international markets. Future price trends will depend on multiple factors such as energy prices, supply and demand balance, and policy changes. For industries that rely on industrial salt, paying close attention to market trends and reasonably controlling inventory and procurement costs will be important strategies for coping with price fluctuations.

With the recovery of the global economy and the development of various industries, the industrial salt market will continue to be active. The future market environment is full of challenges and opportunities. How to maintain competitiveness in price fluctuations will be a common concern of all parties in the industry.