SunSirs: The Market for Polyaluminum Chloride Remained Generally Stable in August

Price trend

According to the commodity market analysis system of SunSirs, the market for polyaluminum chloride (PAC) remained generally stable in August; as of the 31st, the market price for solid PAC (industrial grade, content ≥28%) in my country was quoted at approximately 1,778.33 RMB/ton, remaining steady compared to the price on the 1st.

Market analysis

Raw materials such as aluminum oxide and hydrochloric acid account for over 60% of the production cost of polyaluminum chloride. In August, the market for upstream electrolytic aluminum saw fluctuating gains; meanwhile, the hydrochloric acid market experienced stable operating rates among regional producers and ample supply, leading to a fluctuating downward trend in mainstream ex-factory prices. Calcium aluminate powder prices were underpinned by bauxite—with ore prices remaining firm—keeping production costs high for powder processors; this provided a cost floor for polyaluminum chloride, thereby limiting the scope for further price declines.

August falls within the summer season; while there is theoretically some underlying support for the demand for water treatment chemicals at wastewater treatment plants, the actual increase in volume remains limited. Municipal projects largely rely on existing long-term contracts and replenish supplies based on immediate needs, with few instances of large-scale, centralized procurement. On the industrial side, chemical and papermaking enterprises—affected by scheduled maintenance and low operating rates—have seen limited chemical consumption, leading downstream traders and end-users to adopt a "purchase-as-needed" approach.

Market Outlook:

As September begins—a month traditionally associated with peak market activity—demand from the downstream water treatment industry is expected to see a seasonal rebound. Coupled with fluctuations in upstream raw material costs, the polyaluminum chloride market may finally break out of its current sideways trend, potentially leading to an upward movement in prices throughout the month.

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