The Polyaluminium Chloride market remained depressed in early August due to ongoing low overseas demand and a high amount of carryover inventory from July. Export demand, mainly to China and Japan, remained weak as markets remained cautious with their buying resulting from project delays and positioning for lower prices. Domestic demand wasn't an issue in the first half of August as sectors like water treatment and construction continued to see solid demand; however, the market had not clearly adjusted itself to reflect an overhang of supply and offers descended dangerously low into any level of lucrative business, with losing price contention occurring with export competitors. July brought steep drops in pricing to go along with an increase in supply and drop in raw material prices. Although supply has tightened with curtailed production by export competitors and market feedback may bring new inquiries, most likely limited, we do forecast prices to rise modestly in the next few days or through middle of August.
The Polyaluminium Chloride market faced challenges as we entered early August, as sellers were still dealing with slow international demand and a hangover of excess inventory from the previous month. Exports had continued to be sluggish particularly into Asia with key markets of China and Japan having buyers remaining cautious due to slow moving industrial projects and existing stock levels. Domestic demand for Polyaluminium chloride was showing signs of stability, but not enough to offset or sway negative market sentiment, especially in export-oriented sectors.
Indian polyaluminium chloride exporters have been compelled to keep their offers competitive considering diminished overseas inquiries, coupled with some of its rivals offering aggressive pricing levels Despite steady demand from sectors like municipal water treatment and paper production within India, the lack of traction in the export market had led to limited upward pricing movement. Market participants are watching closely for any signs of recovery in international procurement for Polyaluminium chloride, but early August trends suggest continued softness unless fresh demand emerges from key global buyers.
In July 2025, Polyaluminium chloride prices fell steeply when international demand was softening, and the raw material bauxite prices declined by 1.6%, lowering the cost of production. Lower input prices caused manufacturers in India to increase their output of Polyaluminium chloride, anticipating steady exports of Polyaluminium chloride. Unfortunately, although production increased, demand from substantial buyers, such as China and Japan, was disappointing. They decreased their purchases as their inventories were high and due to the seasonal slowdowns. The increase in Polyaluminium chloride supply coupled with softening international demand, resulted in stock build up and sellers were obligated to drive down prices to be competitive on the world stage.
During July, Polyaluminium chloride domestic consumption was stable, underpinned by ongoing local projects and demand from industry. However, the domestic market was still in an overall downward price trend because of heavy reliance on export. To compound the imbalance of supply and demand, Indian exporters continued to compete heavily, being required to obtain whatever limited international orders were available. Forward Polyaluminium chloride booking remained low, and the larger expected mid-year export uptick simply didn't occur, continuing the downward pressures in the market.
Looking ahead, Polyaluminium Chloride prices are anticipated to increase in the coming days. Due to tightening supply and aspirations of a recovery in international demand (from both China and Japan). After making sluggish exports in July, it was inevitable that Indian Polyaluminium chloride manufacturers were going to turn down production to prevent overstocking, thereby shorting immediate availability. Also, foreign buyers are now showing an increase in inquiries from China's refocused intentions, to Japan, where there are many delayed projects to restart. In our domestic market, Polyaluminium chloride steady demand associated with municipal water treatment and general construction activity, supported by the activities of Jal Jeevan Mission will augment consumption. Additionally, with raw materials costs equalizing, sellers are likely to regain their position of power to increase Polyaluminium chloride prices, albeit conservatively, in the foreseeable future.
