The market for polyaluminum chloride remained stable in May, with China’s solid (industrial grade, content ≥ 28%) polyaluminum chloride market reporting around 1811.67 yuan/ton on the 31st, which remained stable compared to the price on the 1st.

In the production cost of polyaluminum chloride, raw materials such as alumina and hydrochloric acid account for over 60%, and the upstream electrolytic aluminum market fluctuated downward in May; The hydrochloric acid market has experienced periodic price increases due to adjustments in the operating rate of chlor alkali enterprises, which has provided cost support for the overall price of polyaluminum chloride. However, the pressure of oversupply caused by the concentrated production of new alumina production capacity has suppressed the potential for raw material price increases.
May is the traditional off-season for the water treatment industry, with low operating rates for municipal and industrial sewage treatment projects. In addition, downstream industries such as chemical and paper production are generally operating steadily, and the procurement of polyaluminum chloride is mainly based on urgent needs replenishment. The market lacks centralized procurement or unexpected incremental demand, making it difficult to form a pulling force for price increases.
Market forecast: Upstream raw material costs will still be supported in June, and environmental control measures will continue to constrain the production capacity of small and medium-sized enterprises, making it difficult for the supply side to see significant increases; As June enters the traditional peak season of the water treatment industry, there is an expectation of marginal improvement in downstream demand, which will provide some support for prices. The continuous release of new alumina production capacity limits the room for rising raw material costs; The pattern of overcapacity in the industry has not fundamentally changed, market competition still exists, and the motivation for enterprises to actively raise prices is insufficient. It is expected that polyaluminum chloride will continue to operate steadily in June.