For the Quarter Ending September 2025
North America
• In the United States, the Aluminum Chloride Price Index rose quarter-over-quarter, driven by increasing production costs.
• Aluminum Chloride production costs increased due to a 2.6% rise in PPI in August 2025 and higher US spot aluminum premiums.
• Demand for Aluminum Chloride was slightly supported by a 0.1% increase in industrial production in September 2025.
• Robust consumer spending, with retail sales up 5.42% in September 2025, bolstered demand for related consumer goods.
• The Aluminum Chloride demand outlook was positively influenced by robust water treatment sector demand in Q3 2025.
• Rising natural gas prices from September 2025 and low aluminum inventories pressured Aluminum Chloride supply costs.
• North American chlorine prices softened in Q3 2025, partially offsetting other rising Aluminum Chloride production costs.
• Declining consumer confidence in September 2025 may temper future Aluminum Chloride demand, despite a 4.3% unemployment rate.
• The Aluminum Chloride price forecast suggests continued upward pressure from feedstock costs and stable industrial demand.
Why did the price of Aluminum Chloride change in September 2025 in North America?
• Production costs rose due to a 2.6% PPI increase in August 2025 and increased US spot aluminum premiums.
• Industrial demand was slightly supported by a 0.1% rise in industrial production in September 2025.
• Strong retail sales, up 5.42% in September 2025, indirectly boosted demand for Aluminum Chloride.
Europe
• In Germany, the Aluminum Chloride Price Index fell quarter-over-quarter in Q3 2025, driven by contracting industrial activity.
• Aluminum Chloride production costs faced mixed pressures in Q3 2025, with producer prices down 1.7% in September 2025.
• Demand for Aluminum Chloride weakened in Q3 2025 as Germany's Manufacturing Index was contracting.
• Industrial production declined by 1.0% in September 2025, reducing demand for Aluminum Chloride in key industrial applications.
• Global aluminum market tightening in Q3 2025 exerted upward pressure on Aluminum Chloride feedstock costs.
• Chlorine feedstock prices softened in Q3 2025, while its availability remained ample in August 2025.
• German chemical industry production declined in Q3 2025, impacting Aluminum Chloride supply dynamics.
• The Consumer Price Index rose 2.4% in September 2025, potentially impacting consumer spending on personal care products.
• Retail sales increased by 0.2% in September 2025, suggesting stable demand for Aluminum Chloride in antiperspirants.
• The Aluminum Chloride Price Index is forecast to remain subdued due to persistent weak industrial demand.
Why did the price of Aluminum Chloride change in September 2025 in Europe?
• Germany's Manufacturing Index contracted in Q3 2025, significantly reducing industrial demand for Aluminum Chloride.
• Industrial production declined by 1.0% in September 2025, dampening overall demand for chemical inputs.
• Weakened demand for chemical products in Germany during Q3 2025 contributed to downward price pressure.
APAC
• In China, the Aluminum Chloride Price Index fell quarter-over-quarter in Q3 2025, influenced by declining industrial input prices and contracting manufacturing activity.
• Aluminum Chloride production costs trended downwards, supported by a -2.3% year-on-year decline in PPI in September 2025.
• Demand for Aluminum Chloride faced headwinds as the Manufacturing Index contracted in September 2025, signaling a slowdown in industrial activity.
• Despite a contracting Manufacturing Index, industrial production expanded by 6.5% year-on-year in September 2025, providing some baseline demand.
• Consumer confidence remained low at 89.6 in September 2025, contributing to a cautious demand outlook for consumer-related applications.
• Automotive sector demand strengthened significantly in Q3 2025, driven by surging New Energy Vehicle sales, supporting Aluminum Chloride consumption.
• Ample aluminum feedstock inventories and surging alumina output in Q3 2025 ensured stable supply for Aluminum Chloride production.
• The Aluminum Chloride price forecast suggests continued stability with potential for slight downward pressure due to weak overall industrial pricing.
Why did the price of Aluminum Chloride change in September 2025 in APAC?
• Declining industrial input prices, evidenced by a -2.3% PPI year-on-year in September 2025, reduced production costs.
• Contracting manufacturing activity in September 2025, as indicated by the Manufacturing Index, dampened industrial demand.
• Low consumer confidence at 89.6 in September 2025 signaled weaker overall economic sentiment, impacting demand.
