Price trend

According to SunSirs' commodity market analysis system, the market for Polyaluminum Chloride (PAC) remained stable in May. On the 31st, the prevailing market price for solid (industrial grade, ≥28% content) PAC in my country was reported at approximately 1,811.67 RMB/ton, holding steady compared to the price recorded on the 1st.

Market analysis

Raw materials—such as alumina and hydrochloric acid—account for over 60% of the production costs for polyaluminum chloride (PAC). In May, upstream market trends for electrolytic aluminum exhibited volatile downward movement. Meanwhile, the hydrochloric acid market experienced a temporary price uptick driven by adjustments in operating rates among chlor-alkali enterprises; overall, this provided cost support for PAC pricing. However, the pressure of excess supply—resulting from the concentrated commissioning of new alumina production capacity—constrained the potential for further increases in raw material prices.

May typically marks the traditional off-season for the water treatment industry, with commencement rates for municipal and industrial wastewater treatment projects remaining at low levels. Compounded by steady overall operating rates in downstream sectors—such as chemicals and papermaking—purchasing of Polyaluminum Chloride (PAC) has been driven primarily by essential restocking to meet immediate needs. Consequently, the market lacks concentrated bulk buying or incremental demand exceeding expectations, making it difficult to generate the upward momentum required to drive price increases.

Market Outlook:

In June, upstream raw material costs are expected to remain well-supported, while environmental regulations continue to constrain the production capacity of small and medium-sized enterprises; consequently, the supply side is unlikely to see any significant increase in volume. As June marks the onset of the traditional peak season for the water treatment industry, downstream demand is anticipated to experience a marginal improvement, which will provide a certain degree of support for pricing. Meanwhile, as new alumina production capacity continues to come online, there is limited room for further increases in raw material costs; furthermore, the fundamental landscape of industry overcapacity remains unchanged, and with market competition persisting, enterprises lack sufficient incentive to proactively raise prices. It is therefore highly probable that the market for Polyaluminum Chloride (PAC) will continue to operate in a stable manner throughout June.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.