Oxalic acid market analysis

1. Price trend: According to data from the China Report Hall, the price monitoring of oxalic acid in Shandong Province on May 16, 2024 showed that the prices of oxalic acid of different qualities and origins increased steadily.

2. Production capacity: As of the end of 2023, China's annual oxalic acid production capacity has reached 1.18 million tons, and the industry concentration is high. The main production capacity is concentrated in enterprises such as Hualu Hengsheng, Longxiang Industrial, Fengyuan Co., Ltd. and Tongliao Jinmei, with a CR4 of 74% . Among them, Hualu Hengsheng uses the carbon monoxide coupling process, which has high product purity and low cost.

3. Raw material prices: At the end of June 2023, the average sales prices of China's coking coal and sulfuric acid markets dropped by 21.43% and 52.07% respectively compared with the end of June 2022. The supply of raw materials in the market has eased, and production costs are expected to fall further.

4. Downstream demand: Downstream demand for oxalic acid is mainly concentrated in rare earth, new energy, pharmaceutical and other industries. With the rapid development of downstream emerging industries such as electronic ceramics, new rare earth material purification, new energy, and photovoltaics, the demand for oxalic acid continues to grow. China's oxalic acid demand is expected to be approximately 960,000 tons in 2023, and is expected to exceed 1.1 million tons in 2025.

5. Import and export situation: China's oxalic acid export volume in 2022 will be 166,567.33 tons, a year-on-year increase of 48.72%. From January to May 2023, the export volume of oxalic acid was 118,312.42 tons, a year-on-year increase of 126.08%. The import volume and amount of oxalic acid are relatively small. The import volume from January to May 2023 was 71.39 tons, a year-on-year increase of 69.93%.

6. Future trends: With the growth of demand in emerging downstream areas, the demand for oxalic acid is expected to maintain a growth trend. The demand for oxalic acid in the photovoltaic industry, electronic ceramics and other fields is expected to continue to expand and promote industry development.

In summary, the overall oxalic acid market in 2024 will show a tight balance between supply and demand, and prices will be relatively stable. Downstream demand continues to grow, especially demand in emerging fields, which is expected to provide growth momentum for industry development. However, the industry still faces challenges such as raw material price fluctuations and environmental pressure. In the future, industry concentration is expected to further increase, and the increase in high-end oxalic acid production capacity will drive the average price difference between import and export trade to narrow.