SunSirs:The Market for Polyaluminum Chloride Saw a Slight Decline in July

According to the commodity market analysis system of SunSirs, the market for polyaluminum chloride saw a slight decline in July. By the 30th, the market price for solid polyaluminum chloride (industrial grade, content ≥28%) in my country was quoted at approximately 1,778.33 RMB/ton, down 1.84% from the price of 1,811.67 RMB/ton recorded on the 1st.

Raw materials such as alumina and hydrochloric acid account for over 60% of the production cost of polyaluminum chloride. In July, the market for upstream electrolytic aluminum saw fluctuating gains. Regarding hydrochloric acid, chlor-alkali plants continued to generate it as a byproduct, ensuring ample overall supply. Demand from downstream chemical and pickling sectors was sluggish during the first ten days of the month, putting downward pressure on prices; however, periodic maintenance of certain chlor-alkali units later in the month led to a slight tightening of available supply, prompting tentative, minor price increases in some regional markets.

July marks the traditional off-season for water treatment chemicals; municipal sewage treatment projects have entered a lull in construction, and the operating rates of industrial wastewater treatment enterprises have declined. Downstream distributors are largely purchasing on an as-needed basis to maintain low inventory levels, showing little inclination for large-scale restocking. With ample market supply and increased bargaining power among end-users, downward pressure is being exerted on market prices. 

Market Outlook:

Regarding upstream factors, maintenance activities among chlor-alkali enterprises are expected to increase, potentially driving up local hydrochloric acid prices; supplies of calcium aluminate powder and bauxite remain ample, so prices are likely to stay stable; and market circulation of goods is sufficient. On the demand side, August marks the transition between the off-season and peak season for the water treatment industry, suggesting a potential upward trend in the price of polyaluminum chloride.

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