Snowmelt market is far from water

In the past few days, heavy snowfall has continued in the south and the amount of snow melting agents has increased dramatically. The nearly blank southern snow melting agent market suddenly started to make the snow melting agent out of stock. Only an area in Wuhan recently dispatched 40 tons of snow melting agent from the north. On January 29, the reporter discovered in an interview with a snowmelt agent that the sudden start of the snowmelt market in the south caused businesses to be caught off guard, but not substantively positive.

Some stocks of snowmelt manufacturing companies suffer from products that cannot be shipped. Shandong Haihua Group is the largest calcium chloride company in China (calcium chloride is the main raw material for snow melting agent), and its snow melting agent also has a large capacity. It is understood that the company's snow melting agent inventory is still more than 30,000 tons, corporate sources said that this year's snowfall in North China is very small, demand for snow melting agent is not, and the past almost negligible in the South market this year has suddenly started , so that companies are caught off guard. The snowmelt agent should arrive in the demand area within one week to make sense. However, heavy snowfall has caused traffic to be blocked and transportation has been very difficult. As a result, the market has been out of stock while companies have stocks that cannot be sold.

Weifang Changda Chemical Industry Co., Ltd. is the largest snowmelt agent manufacturer in China. The annual production capacity of snow melting agent reaches 300,000 tons. However, the relevant person in charge of the company told reporters that this year they did not enter the South market. “We also know that the southern market has been out of stock, but the snow is too sudden. There has been no warehouse building in the south. Now it is difficult to transport the road in heavy snow.” The person in charge reluctantly said. Due to heavy snowfall across the country this year, the company’s northern region has very limited inventory, and currently produced products are mostly sold to fixed customers. Since the snow melting agent market is selling well, this year's prices have risen broadly, reaching 500-800 yuan/ton according to variety, and the southern market is still higher. In response, the responsible person stated that in the future, a warehouse and stocking system will be established in the south to prevent the recurrence of this year’s situation.

It is understood that most countries in China currently use low-priced, highly corrosive raw salt, urea and other snow, and snow melting agent prices are higher, mainly for large and medium-sized cities and highways, the national annual usage does not exceed 200,000 Tons; annual production of snow melting agent in China is estimated at about 1 million tons, and production enterprises mainly export, such as Shandong Haihua and Changda Chemical's export ratio are all above 70%, and halogen-free environment-friendly snow melting agent is the mainstay. This year, the hot market for domestic snow melting agents may change this situation.

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