In recent days, the southern region has experienced persistent heavy snowfall, leading to a sharp increase in the demand for snow-melting agents. As a result, the previously nearly empty southern market suddenly became overwhelmed, with suppliers struggling to meet the unexpected surge in demand. Only a small shipment of 40 tons of snow-melting agent was recently sent from the north to Wuhan. On January 29, a reporter spoke with industry insiders who revealed that the sudden boom in the southern market caught many businesses off guard, but it was not a sign of long-term positive trends.
Several manufacturers are now facing challenges in distributing their products due to logistical issues. Shandong Haihua Group, China's largest producer of calcium chloride—a key raw material for snow-melting agents—has over 30,000 tons of inventory. According to company sources, this year’s snowfall in northern China has been minimal, and the southern market, which typically plays a negligible role, has seen a sudden spike in demand. This unexpected shift has left companies scrambling. While the product should have reached the demand areas within a week, heavy snow has blocked roads and made transportation extremely difficult. As a result, the market is running out of stock while companies still hold large inventories.
Weifang Changda Chemical Industry Co., Ltd., China's largest snow-melting agent manufacturer, has an annual production capacity of 300,000 tons. However, the company's representative told reporters that they did not enter the southern market this year. “We are aware that the southern market is experiencing shortages, but the snow came too suddenly. We don’t have any warehouses set up there yet, and transporting goods is currently very challenging due to the heavy snow.†The representative added that the company has limited inventory in the north and is prioritizing sales to existing customers. With demand surging, prices for snow-melting agents have risen significantly, reaching between 500 to 800 yuan per ton, with even higher prices in the south. To avoid similar situations in the future, the company plans to establish a warehouse and storage system in the south.
Currently, most regions in China rely on low-cost, highly corrosive materials like rock salt and urea for snow removal. Snow-melting agents, which are more expensive, are mainly used in major cities and highways, with national annual usage not exceeding 200,000 tons. China’s annual production of snow-melting agents is estimated at around 1 million tons, with most of it exported. Companies like Shandong Haihua and Weifang Changda have export ratios above 70%, focusing on halogen-free, environmentally friendly products. However, the current strong domestic demand may change this trend, signaling a potential shift in the market dynamics.
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