For the Quarter Ending March 2025
North America
In the first quarter of 2025, the North American polyaluminium chloride (PAC) market exhibited steady growth, supported by robust demand from municipal water treatment and industrial sectors. The United States, holding approximately 28% of the global PAC market share, led regional consumption, driven by stringent water safety regulations and the need for advanced wastewater treatment solutions. Despite facing challenges such as fluctuating raw material costs and regulatory compliance, the market-maintained stability due to consistent demand from key applications.
Manufacturing activities remained resilient, with regional producers maintaining steady production levels. However, rising input costs, particularly for raw materials like aluminium hydroxide and hydrochloric acid, posed challenges to profit margins. To address these issues, manufacturers focused on enhancing production efficiency and investing in research and development to meet environmental standards. Innovations such as hybrid PAC formulations, which combine the benefits of aluminium- and iron-based coagulants, gained traction, offering improved coagulation performance and broader impurity removal capabilities.
Demand dynamics were influenced by the essential role of PAC in water purification processes. Municipal water treatment remained the largest application segment, accounting for around 40% of the PAC market, driven by the need for clean drinking water and effective wastewater management. The industrial sector, including pulp and paper, textiles, and food and beverage industries, also contributed significantly to PAC consumption. While the market faced competition from alternative water treatment technologies, the versatility and cost-effectiveness of PAC ensured its continued relevance in various applications.
APAC
In Q1 2025, the polyaluminium chloride (PAC) market in India experienced a fluctuating but ultimately upward pricing trend. January began with a 2.1% price decline due to subdued procurement from water treatment and paper manufacturing sectors, abundant inventories, and reduced raw material costs, particularly for alumina and hydrochloric acid. Despite this dip, strong manufacturing indicators and increased industrial activity signalled a rebound, with new orders and export growth encouraging higher production rates. February saw a modest recovery with a 1.8% price increase as domestic demand strengthened and manufacturing momentum continued. GACL’s expansion and adoption of spray dryer technology also improved supply stability, enhancing market confidence.
The market gained further traction in March, with prices rising by 3.0%. This increase occurred even as raw material costs, particularly bauxite, softened. Strong demand from the water treatment and pulp and paper industries, bolstered by government initiatives like "Har Ghar Jal," supported the bullish trend. Tight supply conditions emerged due to growing consumption, yet suppliers effectively met demand through increased pre-production inventories and improved logistics.
Overall, Q1 2025 concluded with positive pricing momentum for PAC, underpinned by strong demand fundamentals, robust industrial growth, and sustained support from public sector initiatives.
Europe
In Q1 2025, the European Polyaluminium Chloride (PAC) market observed a moderate upward price trend, supported by steady demand across water treatment and paper manufacturing sectors. Regulatory pressure to enhance water quality, particularly in Western Europe, maintained consistent consumption levels despite economic uncertainties. The municipal water treatment sector remained the primary demand driver, with countries like Germany, France, and the Netherlands prioritizing infrastructure upgrades and sustainability initiatives. The paper and pulp industry also sustained its PAC consumption to improve wastewater treatment efficiency.
Supply-side conditions were stable but marked by elevated production costs. High energy prices and environmental compliance requirements in Europe continued to weigh on manufacturing economics. Although production levels remained sufficient to meet demand, the cost burden on manufacturers led to marginal price increases. Reduced imports from Asia, attributed to logistical constraints and shifting trade dynamics, added a layer of tightness in supply, further contributing to firm market fundamentals.
Manufacturers also began shifting toward low-carbon and sustainable PAC alternatives, aligning with EU Green Deal objectives. This transition, while still emerging, began to influence procurement and production strategies. Overall, the market maintained a cautiously optimistic tone, balancing strong baseline demand with rising input costs and shifting regulatory landscapes.
For the Quarter Ending December 2024
North America
The North American Polyaluminium Chloride (PAC) market in Q4 2024 exhibited a relatively stable price trajectory, driven by a combination of factors. The quarter commenced with a period of moderate price increases primarily attributed to rising input costs, particularly for key raw materials like aluminium hydroxide and alumina.
This upward trend was further supported by increased demand from the municipal water treatment sector, driven by ongoing investments in infrastructure upgrades and stricter environmental regulations. However, this upward momentum was partially offset by subdued demand from the industrial sector, particularly in sectors like oil & gas and manufacturing, which were impacted by economic slowdown and cautious spending. Towards the end of the quarter, prices experienced a slight decline, primarily due to increased competition from imports, particularly from Asian producers.
This downward pressure was further exacerbated by a slowdown in construction activity and a decline in demand from the oil & gas sector. Despite these challenges, the North American PAC market demonstrated some resilience, with factors such as growing demand from the municipal water treatment sector, driven by increasing investments in infrastructure upgrades and compliance with stricter environmental regulations, supporting market stability towards the end of the quarter.
APAC
The APAC Polyaluminium Chloride (PAC) market in Q4 2024 exhibited a volatile price trajectory, driven by a complex interplay of supply and demand factors. The quarter commenced with a decline in prices due to subdued demand from the downstream sector, particularly from the water treatment sector. This downward trend was further exacerbated by increased imports of cheaper goods and a decline in key raw material prices such as aluminium ore. However, prices rebounded significantly in November and December, driven by a combination of factors, including rising production costs, particularly for bauxite, a key raw material. This upward trend was further supported by robust export performance, with strong demand from key export markets such as Belgium, the USA, and Malaysia. Despite challenges such as subdued domestic demand and seasonal fluctuations in water treatment requirements, the APAC Polyaluminium Chloride market demonstrated some resilience, with factors such as strong export performance and stable manufacturing activity supporting market stability towards the end of the quarter.
Europe
The European Polyaluminium Chloride (PAC) market in Q4 2024 exhibited a volatile price trajectory, driven by a complex interplay of supply and demand factors. The quarter commenced with a period of price stability amidst moderate demand from key sectors such as municipal water treatment and industrial applications. However, prices began to decline in October, primarily due to subdued demand from the downstream sector, driven by factors such as sluggish industrial activity and economic pressures within the region. This downward trend was further exacerbated by declining demand from key export markets and increased competition from other exporters. Subsequently, prices experienced a slight rebound in November, driven by increased demand from the municipal water treatment sector, particularly driven by stricter environmental regulations and a growing focus on water quality. This upward trend was further supported by rising input costs, particularly for key raw materials like alumina. However, the overall market sentiment remained subdued, with concerns about economic slowdown and potential for further price volatility persisting throughout the quarter.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Polyaluminium Chloride (PAC) market saw a consistent decline in prices, driven by several key factors. Reduced demand from downstream sectors such as water treatment, textiles, and paper, along with ample material availability and weak consumption, contributed significantly to the downward pressure on prices. The market also faced challenges due to periodic plant shutdowns and disruptions at major production facilities.
In the U.S., where the most notable price fluctuations occurred, additional factors worsened the situation. Consumer spending and industrial activities in the country decreased, directly impacting the consumption of PAC, especially in critical sectors like water treatment and industrial cleaning. This reduction in demand was further aggravated by global disruptions, including trade route interruptions caused by ongoing conflicts in the Middle East, which affected the availability and cost of key raw materials.
The price decline became more pronounced in the latter half of the quarter, signaling a strong downward trend. By the end of Q3 2024, PAC prices had settled at lower levels, reflecting the negative market sentiment shaped by persistent price drops and challenging market conditions throughout the period.
APAC
In Q3 2024, the APAC region witnessed a notable increase in Polyaluminium Chloride prices. Several factors contributed to this uptrend. Strong industrial activities and heightened demand in the water treatment sector drove consumption, while disruptions like plant shutdowns in China, such as the one at Henan Fengbai Industrial Co., Ltd. due to flooding, impacted supply. This led to a supply-demand imbalance, further pushing prices upwards.
In India, the market experienced the most significant price changes, with a 5% increase from the previous quarter and a 6% difference between the first and second half of the quarter. The quarter-ending price in India stood at USD 386/MT FOB JNPT, reflecting the overall positive pricing environment.
Overall, the quarter was characterized by increasing prices fueled by robust demand, disruptions in supply chains, and specific market conditions influencing the Polyaluminium Chloride market in the APAC region. However, in the last month of this quarter, the demand slowed down along with the industrial activities slowing for the first time in over a year.
Europe
Throughout Q3 2024, the Polyaluminium Chloride (PAC) market in Europe experienced a downturn in prices, with Germany notably impacted by significant fluctuations. The price decline was driven by weakening demand from downstream industries, including water treatment, textiles, and paper, combined with reduced consumer spending and sluggish economic growth.
Additionally, an abundant supply of materials in the region further contributed to the downward pressure on prices. The overall market sentiment remained negative, as pricing trends reflected the difficult conditions faced by Polyaluminium Chloride producers and distributors. Furthermore, towards the end of the quarter, the freight rates also decline coupled with increased container availability which also supported the price declines.
Although there was a slight improvement compared to the previous quarter, the overall pricing environment for Polyaluminium Chloride remained largely stable yet consistently downward throughout the period. The market continued to face persistent challenges due to subdued demand across key sectors, including water treatment and industrial cleaning. Despite occasional restocking efforts by some industries, weak consumer and industrial activity in North America, combined with global supply chain disruptions, prevented any significant recovery.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Polyaluminium Chloride market in North America experienced an upward trend. Prices rose in the initial weeks due to increased consumer demand, particularly in the industrial, household, and water treatment sectors, as summer approached. Despite rising costs from upstream markets, overall input costs eased due to a decline in crude oil prices, attributed to an unexpected surge in U.S. crude oil inventories.
By mid-Q2 2024, PAC prices continued to climb due to heightened demand and supply constraints. Although the textile and paper industries showed limited demand, the influence of upstream raw materials. Although, in the quarter, the business confidence improved marginally, the consumer demand in other sectors apart from the water treatment industry was lacking. Although Q1 GDP was weaker than expected, this was primarily due to softer net exports and inventory investment, which offset stronger domestic economic activity.
In the last month of the quarter, PAC prices increased further due to persistent supply stress and strong domestic demand. Upstream prices continued to exert influence, while crude oil prices were driven higher by geopolitical tensions and supply concerns. The U.S. economy showed positive signs, with projections of high inbound cargo volumes despite ongoing supply chain challenges, leading to optimism among industry participants about the future.
APAC
In Q2 2024, the pricing landscape for Polyaluminium Chloride across the APAC region experienced a notable uptrend, driven by a confluence of factors. Robust consumer demand, especially from industries engaged in water treatment and paper manufacturing, played a pivotal role in exerting upward pressure on prices. The summer months typically see heightened agricultural irrigation and increased water consumption due to outdoor activities and elevated temperatures, which significantly escalated the need for coagulants like Polyaluminium Chloride. Focusing on India, the market displayed the most pronounced price changes within the APAC region. The quarter saw a consistent escalation in prices, attributed to robust domestic demand and constrained supply. A comparison between the first and second halves of Q2 reveals a 2% price increase, underscoring a persistent upward trajectory. The correlation between seasonal demand and price trends was evident, with summer activities amplifying water treatment requirements. The overall sentiment was bullish, supported by steady industrial activity and favorable economic conditions. The latest quarter-ending price for Polyaluminium Chloride in India was USD 360/MT FOB JNPT, reflecting a steady and positive pricing environment throughout Q2 2024. The percentage change from the previous quarter in 2024 was recorded at 0%, indicating stability following the quarter's initial gains. These dynamics highlight a robust and increasing pricing sentiment, driven by substantial demand and supply-side constraints.
Europe
In the second quarter of 2024, the Polyaluminium Chloride market in Europe experienced an upward trend. In the first month, prices rose in Germany due to improved supply and demand fundamentals. The German chemical industry's business climate showed positive signs, with the business index rising from -10.1 points in March to -6.0 in April. Companies assessed their business situation more positively and had brighter expectations, signaling increased confidence about the coming months. However, the demand situation remained challenging, with nearly half of the companies reporting insufficient orders, increasing from 40.6% in January to 46.6% in April. Despite these challenges, chemical companies anticipated higher overseas orders and planned to increase sales prices for the first time since January 2023. In the next two months, PAC prices continued to trend upward as market conditions improved, albeit at a slower pace. European markets saw slight improvements due to restocking ahead of the summer vacations, although competition from cheaper Asian imports remained a challenge. The overall order book levels showed gradual improvement, indicating a positive trend, but the chemical confidence indicator, while improving, remained low. High energy and raw material prices, along with a lack of orders, continued to burden businesses. Consequently, companies were forced to cut costs, potentially leading to shutting down production plants, abandoning business segments, or shifting investments abroad. Despite these challenges, the market outlook for the product and the broader chemical industry in Germany appeared cautiously optimistic.
