SunSirs: The Market for Polyaluminum Chloride Rose in April

Price Trends

According to the commodity market analysis system of SunSirs, the market for Polyaluminum Chloride (PAC) saw an upward trend in April. On the 30th of the month, the mainstream quotation for solid (industrial grade, content ≥ 28%) PAC in the domestic market stood at approximately 1,811.67 RMB/ton—up 1.45% from the mainstream quotation of 1,745 RMB/ton 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. In April, the upstream market for electrolytic aluminum experienced price volatility. Meanwhile, the hydrochloric acid market saw a temporary price uptick driven by adjustments in operating rates among chlor-alkali enterprises; overall, this trend provided cost-based support for the pricing of polyaluminum chloride.

April marks the onset of the traditional peak season for water treatment demand, characterized by accelerated progress in the upgrading and renovation of municipal wastewater treatment plants and increased commencement rates for industrial wastewater treatment projects, thereby triggering the release of essential downstream procurement demand. Notably, within the drinking water treatment sector, demand remains stable for high-quality Polyaluminum Chloride (PAC) with an alumina content of ≥28%; leading water treatment plants have placed orders that show a month-on-month increase, alleviating inventory pressure on manufacturers and bolstering their willingness to raise price quotations.

Market outlook

In May, some chlor-alkali enterprises are still scheduled to undergo planned maintenance, thereby limiting the output of hydrochloric acid—a co-product of the process. Furthermore, in May, approximately 4–5 million tons per annum of new alumina production capacity—located primarily in Fangchenggang and Yulin, Guangxi—is set to enter a phase of concentrated commissioning; this development will further exacerbate the pressure of oversupply within the industry. The alumina oversupply is expected to suppress cost increases, thereby limiting the upside potential for hydrochloric acid prices. Compounded by a lack of unexpectedly positive demand-side drivers in the market for Polyaluminium Chloride (PAC), the product lacks sufficient momentum for a substantial price surge; consequently, prices are projected to remain at elevated levels while exhibiting a pattern of volatile fluctuation.

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