Aluminium Trihydrate prices increased moderately across India, Taiwan, and Saudi Arabia, influenced by stable supply-demand situations and higher production costs, which varied across different regions.

In India, Aluminium Trihydrate prices inclined by 1.1% with prices continuing to upward trend from March. Although, raw material bauxite prices fell slightly. The Aluminium Trihydrate price increase was supported by rising domestic production costs and robust export demand from countries such as Taiwan and Saudi Arabia. Demand from the construction sector was lingering, with some stability present, but gentle recovery in the automotive sector led to increased offtake. Domestic supply remained stable due to average levels of production that were supported by the bauxite supply remaining plentiful. Export demand also maintained an upward influence on Aluminium Trihydrate prices, with tariff regulations remaining unchanged throughout the month.

In Saudi Arabia, Aluminium Trihydrate prices increased 2.5% in April continuing the rise seen in March. The price increase was largely caused by rising costs of the key raw material caustic soda. Domestic demand was steady to weak for construction activity, whereas increasing demand from automotive sales saw strong growth. Saudi imports the majority of its Aluminium Trihydrate from India, the increase in price in India accomplished an increase in Saudi Arabia. No significant tariffs were reinstated, however, future trade policies, may impact demand. Future needs associated with Saudi infrastructure development will also drive rising demand from the construction sector.

At the same time, Aluminium Trihydrate prices in Taiwan rose an average of 4.1%, continued the upward trend observed in March. The increase was driven primarily by higher import costs from India, which also saw price rises due to increased production costs. Downstream demand from the construction and automotive sectors in Taiwan was still subdued but demand from industrial applications such as flame retardants, water treatment remained stable. The demand for Aluminium Trihydrate is almost exclusively driven by imported material due to domestic supply constraints from limited production capacity. The supply remained stable and predictable, and there was no major disruption to those supply chains. Taiwanese demand is likely to see some gradual improvement in demand as smaller industrial demand drivers may also play a role in improving market performance in the following months.

Looking ahead, ChemAnalyst expects that Aluminium Trihydrate prices are expected to rise in upcoming weeks, due to production costs getting expensive as raw materials cost increases, especially caustic soda and bauxite. Continued export demand from India, Taiwan and Saudi Arabia will be another factor that will lead to prices going up. Demand increasing in the automotive sector is also likely to also rise Aluminium Trihydrate prices higher.