Texas, USA:  The US Polyaluminium Chloride continues its upward trend entering September 2024 due to strong demand and supply concerns. The inquiries for Polyaluminium Chloride during the hurricane season experience upward pressure due to supply chain disruptions, increased demand for water treatment, and higher raw material and energy costs. Hurricanes and heavy rains lead to excessive flooding and water contamination, which in turn increases demand for water treatment chemicals like Polyaluminium Chloride. This surge in demand, combined with potential supply constraints, has led to price increases for Polyaluminium Chloride.

Recently, concerns over Hurricane Francine potentially disrupting U.S. output. According to the U.S. National Hurricane Center, Francine intensified into a hurricane in the Gulf of Mexico, leading Louisiana residents to evacuate companies to halt production. Tropical Storm Francine, which is projected to intensify into a hurricane, is expected to cause major disruptions as it approaches Louisiana which could hamper the supply chain of Polyaluminium Chloride.

The market participants in the Gulf Coast area anticipate flight cancellations, delays, and dangerous road conditions as the storm strengthens which could disrupt the logistics. Francine, currently gaining strength over the Western Gulf of Mexico, is forecast to hit the Gulf Coast, bringing severe weather. Predictions indicate heavy rainfall, strong winds, and possible tornadoes across southern Louisiana. With significant disruptions anticipated, efforts are being made to mobilize resources and implement safety measures. This could also disrupt the USA’s chemical trade including that of raw material Bauxite, an essential raw material of Polyaluminium Chloride.

In the energy markets, the U.S. Bureau of Safety and Environmental Enforcement (BSEE) reported that approximately 24% of crude oil production and 26% of natural gas output in the Gulf of Mexico were shut down due to the storm which has also raised concerns among other industry players including chemical manufacturing.

On the cost side of Polyaluminium Chloride, Guinea's bauxite exports (the biggest in the world) have continued to surge, reaching around 92 million tonnes in 2024, representing 74% of the total 2023 exports. In 2023, Guinea exported a record 124.84 million tonnes of bauxite, marking a 22% increase year-on-year. Most of these exports, bound for China, originate from ports like Kamsar and Conakry. Bauxite market continues to provide solid support to the Polyaluminium Chloride market. Despite challenges from the rainy season, August 2024 exports reached 10.16 million tonnes, up 12.91% from the previous year.  As per the recent assessments, in July, Guinea's bauxite market saw significant growth in production and exports, leading to higher prices and increased manufacturing costs of Polyaluminium Chloride. With the world’s largest bauxite reserves, Guinea’s exports, mainly to China, surged by 24.5% to 127 million tons.

According to the ChemAnalyst pricing intelligence, the prices of Polyaluminium Chloride are presumed to incline upwards in the upcoming weeks due halted production and expected strong consumption in the region.