Lignosulfonate for drilling is very tight in China since Dec.2012

since Dec.,2012, lignosulfonate for drilling(including ferrochrome lignosulfonate, chrome lignosulfonate, chrome free lignosulfonate, calcium lignosulfonate)has become very tight in China, price of it keep increasing,even at high price, some customers couldn't get  enough cargo.
the main reason is it's main raw material---waste liquid from paper making industry is less. China paper plant are facing big difficulty in selling out paper and lignin fiber, because the imported paper and fiber has much cheaper price, they are selling  main products on loss basis, the more cargo they sell, the more money they lose . then someone is doubt, if lose money, why these plants close? it is not so easy to do it, usually paper plant is very big, has employed hundreds of workers, if it closed, how they solve the life of their workers, it will be a big project.

waste liquid from paper making industry, as the by-product, though it has good market, but because main products are losing money, the production of it become less and less.

in the past, in China,only two paper plants could supply raw material for lignosulfonate,drilling grade, because the lignosulfonate, drilling grade must use the waste liquid from acid way(sodium sulfide) paper making process, and this way pollute environment. however, as the reasons i state above, these two plants combine into one plant(hereinafter called BL), and that one plant want to monoply the lignosulfonate market.
if lignosulfonate plant couldn't sell the price above the line that raw material BL plant set, BL plant won't supply raw material to them.

compared with price in 2012, lignosulfonate, drilling grade price has increased by around 20%.

in short time, this situation won't change. hope customer could slowly accept the price.
if u need lignosulfonate, welcome to contact me: Email:banmutang2003@gmail.com.
to know more details about our product and company, welcome to visit our website:www.wfychina.com