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Starting from 2012, China's "Catalogue of Customs Supervision and Control Conditions Adjustment" made adjustments, and solid sodium hydroxide (solid alkali) was included in the list of legal inspections. The inspection condition for the inspection of the customs declaration is the goods of A (import) or B (export). At the time of customs declaration, the customs clearance of the inspection bureau must be provided, that is, the statutory inspection goods.

From the perspective of the export situation in the first three months, the impact of the inspection and inspection of the commodity inspections was mainly due to the extension of the export cycle, resulting in a sharp drop in exports.

In the first quarter of 2012, China's exports of solid alkalis increased steadily. Among them, in January, affected by the upcoming Spring Festival holiday, solid-base exports remained stable and there was no significant fluctuation in prices. However, after the Spring Festival holiday, due to the limited inventory of enterprises, the market for export volume is small, coupled with reduced inventory of downstream traders, and active promotion of inquiry, the export price of solid alkali rises slightly, and the increase rate is between US$5 and US$10 (t price, the same ), then again into the high stable period.

In mid-to-late February, due to the influence of legal inspection, the shipping status of the company was affected. The focus of attention was shifted to the legal inspection. Under the premise of no inventory pressure, export companies slightly raised the price to test the downstream market, and the mutual stalemate between buyers and sellers. In the middle, export prices of solid alkali were temporarily stable.

In March, the price of liquid caustic soda in northwestern China rose, while the rise in oil prices drove up transportation costs. Affected by rising costs, China's solid-alkali processing companies were under pressure and chose to reduce production. The large-scale chlor-alkali enterprises are mostly based on liquid caustic soda sales, tight supply of solid caustic soda exports, some companies choose to limit the number of blank because no inventory, export prices of solid caustic soda rose to new heights. However, on the downstream side, in spite of the active inquiries, the procurement situation was not satisfactory in the face of such high protopine prices. In some cases, there was even a situation where there was no market for prices. As of the end of March, China's 99% pro-kaline port export prices are mostly concentrated in the 520-530 US dollars (FOB China main port), the transaction price is slightly lower 5 to 10 US dollars.

From the company's understanding, the implementation of legal inspection has had an impact on China's export market for solid alkalis:

The first is that the export cycle has been lengthened, and companies have been slow to ship. According to reports, after the implementation of the inspection, the export time of China's solid alkali was delayed by 15 to 20 days from the previous period, and the shipping cycle was extended by nearly a month. In particular, the delay in the export of solids and alkalis in China was significant when the law inspection was just implemented. Some enterprises have reported that orders for the period before and after the Spring Festival were postponed until the beginning of March, causing a certain negative impact on China's exporters of solid alkalis. However, it is expected that its impact on exports of solid alkali will gradually decrease with the gradual proficiency of legal inspection procedures in the later period.

The second is the decline in exports. In terms of exports of solid caustic soda from the previous two months, both the chain ratio and the year-on-year decline. In January, the export volume of China's solid alkali was 34,761 tons, a decrease of 28% from the previous month and a year-on-year decrease of 16.5%. In February, exports of solid caustic soda were 27,061 tons, a decrease of 22% from the previous month and a decrease of 2.9% year-on-year.

The third is the increase in export costs. The legal inspection will charge three-thousandths of the cost. According to the preliminary estimate, based on the current price of US$520, the export cost of solid alkali will increase by an average of US$1.5 (equivalent to approximately RMB10). China's solid-base export orders are mostly in the range of 100-200 tons, and large-sized orders for 400-500 tons are also traded. According to statistics, in January, February and March, 99% protopine export prices were 500-510 US dollars, 505-515 US dollars and 510-525 US dollars. However, in the first quarter, due to the fact that the export price of protopine was already at a relatively high level, the small increase in cost did not have a significant impact on it.

Fourth, the quality of export products is more secure and can better protect the rights of exporters and importers.

Proportine export ports in China are mainly concentrated in Tianjin, Shanghai and inland Alashankou and Pingxiang Port. At present, Tianjin, Shanghai and other coastal ports have a high degree of concern for law inspections, while inland ports Alashankou and Pingxiang Port have limited shipments, and companies are concerned about legal inspections. It is expected that after the second quarter of the year, the impact of law enforcement on China's export market of solid alkali will gradually decrease.

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