SunSirs: The future prospects of PAC in 2024

Market forecast for PAC in 2024

Cost side: According to the commodity market analysis system of SunSirs, the domestic hydrochloric acid market experienced a wide range of fluctuations in 2023. The average price at the beginning of the year was 174 RMB/ton, and the average price at the end of the year was 112.50 RMB/ton, with a year-on-year decline of 35.34%. The East China region is one of the main regions for hydrochloric acid production in China. Among them, Jiangsu Province is one of the important bases for hydrochloric acid production in China, with hydrochloric acid production ranking first in the country. In 2024, with the strengthening of environmental protection policies, some hydrochloric acid production enterprises may be forced to stop or reduce production, and hydrochloric acid production may decrease.

Supply side: According to incomplete statistics, there are currently more than 300 PAC production enterprises in China, with an annual production capacity of over 300,000 tons (calculated based on a solid alumina content of 30%), mainly used for water treatment. The production capacity of northern regions, represented by Henan and Shandong, accounts for about 70% of the total domestic production capacity. In addition, due to abundant raw material resources, the Gongyi region of Henan has formed an industrial cluster with more than 130 local production enterprises, accounting for more than 50% of the total production capacity. It plays a leading role in balancing domestic supply and demand and has become a typical production base. At the same time, these enterprises have established distribution offices in Guangdong and other regions to implement regional structural adjustments in production and consumption. The northern region is gradually becoming a production base for PAC. The demand in the southern region continues to grow, becoming the main domestic consumption area.

Demand side: In addition to being used for traditional domestic water, industrial water, and urban sewage treatment, PAC can also be used for the treatment of pulp and paper wastewater, pharmaceutical wastewater, and printing and dyeing wastewater. As of 2023, the number of urban sewage treatment plants in China had exceeded 2,000, with a daily processing capacity of 170 million cubic meters. At the same time, more and more rural areas were starting to build sewage treatment facilities, further promoting the development of the industry. With the strengthening of people's environmental awareness and the strengthening of national environmental supervision, the application scope of PAC in water treatment will become increasingly broad, and the development prospects are optimistic.

Market outlook

At present, the supply of PAC in China exceeds the demand, which belongs to the buyer's market and faces significant market competition pressure. In 2024, China's PAC inventory remains abundant; Although the demand for PAC has increased in 2024, the market is still in a state of oversupply. It is expected that the overall PAC market will fall in 2024.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.