The market for polyaluminum chloride in October saw a slight decline, with China’s solid (industrial grade, content ≥ 28%) polyaluminum chloride market reporting around 1778.33 yuan/ton on the 26th, a decrease of 0.47% from the price of 1786.67 yuan/ton on the 1st.
In the production cost of polyaluminum chloride, raw materials such as alumina and hydrochloric acid account for over 60%. In October, the upstream electrolytic aluminum market first fell and then rose, with an overall decline. In the early stage, the market had high expectations for the “Silver October” peak season, but when demand fell short of expectations, aluminum prices concentrated and released negative sentiment, rapidly declining; After the price fell to a low level, the cost-effectiveness attracted the entry of essential demand, promoting market recovery, but the fundamentals did not undergo substantial reversal, and there was no sustained significant improvement in demand; The hydrochloric acid market rose first and then fell in October, with a slight overall decline. The cost support of polyaluminum chloride is limited.
Polyaluminum chloride is mainly used for municipal wastewater treatment, industrial wastewater treatment, and water purification in water treatment plants. In October, sewage treatment companies mainly relied on replenishing inventory according to demand, with weak willingness to concentrate on stockpiling. The market was dominated by old customers’ urgent orders, and there were relatively few new large orders. The downstream procurement rhythm tends to be cautious, with more immediate use and procurement, and no large-scale stocking. The demand side lacks upward driving force, and the market lacks upward momentum.
Market forecast: On the raw material side, the aluminum market will rise by the end of the month, while the hydrochloric acid market will remain stable, supported by the cost of polyaluminum chloride; On the other hand, downstream water treatment demand is difficult to release in a concentrated manner, and procurement remains cautious and rigid, making it difficult for the demand side to drive a rebound in the market. It is expected that the polyaluminum chloride market will mainly experience narrow fluctuations in November.