Price trend

According to SunSirs' commodity price analysis system, the price of polyaluminum chloride (PAC) saw a slight increase in January. On January 30th, the main price for solid (industrial grade, content ≥28%) polyaluminum chloride in China was around 1,720 RMB/ton, compared to 1,711.67 RMB/ton on January 1st, representing a 0.49% increase. Water treatment companies in China's main production areas operated normally, resulting in ample market supply. Downstream buyers purchased on an as-needed basis. While the price of hydrochloric acid, a raw material, remained weak, fuel prices increased, leading to mixed cost changes for polyaluminum chloride.

Market Analysis

Raw material hydrochloric acid: In January, the domestic hydrochloric acid market experienced an initial decline followed by a rise, remaining stable overall. As of January 30th, the price of hydrochloric acid was 107.50 RMB/ton.

Liquefied natural gas (LNG) is used for production purposes. In January, domestic LNG market prices rose sharply. As of January 30th, the average price of LNG was 3,610 RMB/ton, a 9.33% increase compared to 3,302 RMB/ton on January 1st. The sustained low temperatures led to strong heating demand in northern regions, supporting LNG consumption.

Market outlook

In January, the market for raw material hydrochloric acid was weak, while the price of fuel liquefied natural gas rose, resulting in mixed cost trends for polyaluminum chloride. On the supply side, Chinese polyaluminum chloride manufacturers maintained normal production with ample inventory; on the demand side, downstream purchasing remained sluggish, with most buyers purchasing only as needed. As of January 30, the domestic polyaluminum chloride market was experiencing oversupply, and the price is expected to mainly consolidate in the near future.

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