For the Quarter Ending December 2025
North America
• In the USA, the Polyaluminium Chloride Price Index rose by 3.63% quarter-over-quarter, supported by municipal procurement.
• The average Polyaluminium Chloride price for the quarter was approximately USD 352.33/MT, reflecting Gulf-Coast stability.
• Polyaluminium Chloride Spot Price spiked in mid-December driven by project demand, tightening available Gulf inventory.
• Polyaluminium Chloride Price Forecast indicates modest firmness as infrastructure projects sustain procurement and limit spot availability.
• Polyaluminium Chloride Production Cost Trend remained stable with aluminium hydroxide and hydrochloric acid costs unchanged.
• Polyaluminium Chloride Demand Outlook shows municipal water-treatment procurement and regulatory compliance driving buying into year-end.
• Polyaluminium Chloride Price Index reflected balanced imports and logistics supporting stable costs at Gulf terminals.
• Distributor inventories remained adequate while domestic plants operated normally, limiting urgency for incremental spot buying.
Why did the price of Polyaluminium Chloride change in December 2025 in North America?
• Import arrivals met demand, yet late project buying tightened spot availability, increasing competitive bids materially.
• Feedstock and energy costs were largely stable, so production cost pressure remained limited through December.
• Smooth port operations and predictable inland logistics avoided demurrage, allowing prompt deliveries and muted price volatility.
APAC
• In China, the Polyaluminium Chloride Price Index rose by 1.7% quarter-over-quarter, driven by export support.
• The average Polyaluminium Chloride price for the quarter was approximately USD 239.33/MT, FOB Q4 2025.
• Polyaluminium Chloride Spot Price stayed range-bound in December, the Price Index showing stable balance overall.
• A conservative Polyaluminium Chloride Price Forecast expects limited upside near-term given ample inventories and exports.
• Polyaluminium Chloride Production Cost Trend remained subdued as hydrochloric acid and aluminium hydroxide prices steady.
• Polyaluminium Chloride Demand Outlook remains moderate with municipal tenders subdued and exports absorbing most volumes.
• Inventories were moderate near eighteen days forward sales, supporting stable Price Index and limiting upside.
• Producer operating rates averaged seventy one percent, maintaining output, keeping Polyaluminium Chloride Price Index neutral.
Why did the price of Polyaluminium Chloride change in December 2025 in APAC?
• Moderate export demand cleared output while domestic municipal procurement completed, keeping December prices broadly unchanged.
• Stable feedstock quotations for aluminium hydroxide and hydrochloric acid restrained production cost escalation in December.
• Improved logistics and modest freight easing increased arbitrage but overseas buyer resistance limited price gains.
Europe
• In Europe, the Polyaluminium Chloride Price Index showed a mixed trend in Q4 2025, with early-quarter softness followed by moderate recovery toward the end of the quarter.
• The average Polyaluminium Chloride price for the quarter remained largely stable, supported by consistent demand from municipal water treatment and industrial wastewater sectors.
• Polyaluminium Chloride Spot Price weakened in September due to lower spot buying as downstream industrial activity slowed after summer and inventories remained adequate.
• The Polyaluminium Chloride Production Cost Trend remained steady, with stable raw material costs for alumina, bauxite, and energy inputs, limiting cost-push pressure.
• Polyaluminium Chloride Demand Outlook remained balanced, with steady municipal water treatment and industrial effluent treatment requirements, while seasonal dips in coatings and pulp & paper partially offset growth.
• The Polyaluminium Chloride Price Forecast indicates range-bound movement, with upside supported by late-quarter restocking and downside limited by baseline regulatory-driven demand.
• Adequate inventories and operational continuity at major European producers prevented sharp price swings, contributing to the observed mixed trend in the Price Index.
Why did the price of Polyaluminium Chloride change in December 2025 in Europe?
• End-of-year restocking by municipal water treatment plants and industrial buyers increased spot demand, tightening immediate availability and supporting higher prices.
• Rising raw material costs, particularly alumina and bauxite, and elevated logistics expenses contributed to upward pressure on both domestic and export pricing.
• Later in December, sufficient inventories at major producers and competitive offers from sellers created mild downward pressure, moderating the earlier price increase.
For the Quarter Ending September 2025
North America
• In USA, the Polyaluminium Chloride Price Index fell by 6.8% quarter-over-quarter, driven by import competitiveness
• The average Polyaluminium Chloride price for the quarter was approximately USD 340.00/MT, reflecting procurement activity
• Polyaluminium Chloride Spot Price firmed as import delays tightened availability for US water treatment buyers
• Polyaluminium Chloride Price Forecast shows modest upside term given shipping disruptions and steady municipal procurement
• Polyaluminium Chloride Production Cost Trend elevated as firm bauxite and alumina inputs pressure producer margins
• Polyaluminium Chloride Demand Outlook stays supportive from municipal water projects and pulp and paper procurement
• Polyaluminium Chloride Price Index mirrored import tightness and resilient domestic buying, weighing on export volumes
• US producers operational; inventories tightened as carriers' schedule adjustments delayed inbound shipments, supporting higher bids
Why did the price of Polyaluminium Chloride change in September 2025 in North America?
• Import delays and Asian port congestion tightened supply, prompting accelerated US buying, higher landed costs
• GRI and PSS expectations induced procurement ahead of surcharges, freight volatility increased landed cost uncertainty
• Robust municipal and pulp demand absorbed tighter imports, maintaining upward pressure despite stable domestic production
APAC
• In China, the Polyaluminium Chloride Price Index fell by 1.94% quarter-over-quarter, reflecting mild cost pressures.
• The average Polyaluminium Chloride price for the quarter was approximately USD 235.33/MT, reflecting weekly stability.
• Polyaluminium Chloride Spot Price stability reflected balanced supply, while export interest intermittently supported offers periods.
• Polyaluminium Chloride Price Forecast remains cautiously firm as bauxite-driven production costs apply modest upward pressure.
• Polyaluminium Chloride Production Cost Trend influenced by firmer bauxite CFR prices and input cost pass-through.
• Polyaluminium Chloride Demand Outlook stayed resilient for water treatment and pulp sectors, underpinning near-term firmness.
• Polyaluminium Chloride Price Index movements were muted amid stable manufacturing rates and inventories drawn down modestly.
• Export demand from UK and South Korea intermittently tightened availability, affecting domestic FOB offers and pricing dynamics.
Why did the price of Polyaluminium Chloride change in September 2025 in APAC?
• Rising bauxite CFR costs tightened raw material availability and pushed production cost structures higher materially.
• Domestic municipal water treatment project timing reduced procurement, moderating short-term demand and price momentum seasonally.
• Fluctuating export inquiries and inventory draws prompted suppliers to adjust FOB offers, pressuring price levels.
Europe
• In Germany, the Polyaluminium Chloride (PAC) Price Index fell by 2.41% quarter-over-quarter, reflecting lower import offers and easing raw material costs.
• The average PAC price for the quarter reflected steady procurement activity across municipal and industrial water treatment sectors.
• PAC Spot Price softened mid-quarter as bauxite prices stabilized and import parity improved, increasing competitive pressure on domestic producers.
• PAC Production Cost Trend eased slightly, as alumina and bauxite input costs normalized following earlier supply tightness.
• PAC Demand Outlook remained stable, supported by municipal water treatment and paper industry procurement despite seasonal slowdown.
• PAC Price Forecast suggests a mild rebound into Q4 2025, driven by restocking and potential freight cost adjustments.
• European suppliers maintained balanced operations, aligning output with consistent consumption levels to avoid excess inventory buildup.
• Import parity and freight timing influenced landed cost dynamics, creating brief periods of spot firmness across regional hubs.
Why did the price of Polyaluminium Chloride change in September 2025 in Europe?
• Softer bauxite costs and stable municipal demand kept pricing subdued, with mild downward adjustments across regional markets.
For the Quarter Ending June 2025
North America
• Throughout Q2 2025 the Polyaluminium Chloride Price Index in North America showed little change with limited upside and downside movement. The pricing in relation to the free on board (FOB) Houston price continued to hover at modest levels, reflective of balanced domestic consumption from the municipal water treatment sector and an adequate supply being made available.
• The pricing continued to be supported by ongoing demand for Polyaluminium Chloride in the wastewater treatment sector and for minor industrial applications. Regulatory mandates on water quality in certain U.S. states provided continuity on the base level of consumption.
• Why did the price of Polyaluminium Chloride change in July 2025?
In July, the Polyaluminium Chloride Price Index in North America remained flat due to lukewarm procurement activity and absence of any supply disruption. Export flows remained moderate, and domestic demand showed no significant change, preventing any strong upward or downward price correction.
• Logistics remained fluid, with no major disruptions in rail or road movement. However, moderate trucking delays in the Midwest region were reported due to weather-related conditions.
• The Polyaluminium Chloride Demand Outlook for Q3 2025 suggests moderate stability, with steady municipal water treatment projects maintaining baseline consumption. No significant spikes are forecasted.
• The Polyaluminium Chloride Production Cost Trend remained flat during Q2, as raw material availability and energy costs did not see significant fluctuation. Margins remained narrow but sustainable.
• The Polyaluminium Chloride Price Forecast for Q3 suggests prices will likely remain rangebound, barring any seasonal demand spikes or regulatory enforcement that might temporarily lift purchases.
APAC
• The Polyaluminium Chloride Price Index in APAC region rose by approximately 7.3%, resulting in a net positive trend for Q2, settling at USD 434/MT by the end of June.
• Key drivers included stable Polyaluminium Chloride Production Cost Trends, strong export demand to Vietnam, China, and Japan, and seasonal strength in domestic water treatment needs.
• Why did the price of Polyaluminium Chloride change in July 2025?
In July, preliminary data indicates slight upward pressure on prices, driven by continuing high demand from the water treatment sector due to monsoon-related contamination and increasing municipal treatment activities. Export demand remains stable, and FOB values are expected to remain strong.
• Overcapacity in the region remains a concern, especially with China’s increasing output; however, India’s exports were supported by firm Southeast Asian and Middle Eastern demand.
• Domestic manufacturers benefited from tight inventory levels after production adjustments in May, which helped maintain margins. Supply chains remained smooth, with no freight bottlenecks reported.
• The Polyaluminium Chloride Spot Price remained elevated across key Indian ports, supported by timely shipments and forward bookings by foreign buyers.
• The Polyaluminium Chloride Demand Outlook for Q3 is optimistic, with Indian water utilities increasing procurement amid rising rainfall-induced contamination, while overseas buyers continue restocking to meet seasonal demand.
• The Polyaluminium Chloride Price Forecast for Q3 indicates firm pricing sentiment, with prices likely to remain elevated on strong export bookings and high summer-end treatment volumes.
Europe
• The Polyaluminium Chloride Price Index in Europe showed mild fluctuations during Q2 2025, in key locations like Germany and France. The trend was largely influenced by softening industrial activity and stable domestic inventories.
• Demand from water utilities remained consistent; however, industrial offtake, especially from the paper and pulp sector, declined slightly. EU-wide environmental regulations maintained a minimum baseline usage of coagulants in municipal treatment facilities.
• Why did the price of Polyaluminium Chloride change in July 2025?
In July, prices slightly declined due to limited export movement and steady domestic inventories. Weaker demand from Southeast Europe, especially in countries like Romania and Hungary, pressured localized pricing lower.
• Regional trends showed that the Netherlands experienced the steepest fall, mainly due to reduced demand from industrial end-users facing water conservation initiatives that limited treatment frequency.
• Inventory levels remained balanced, and distributors reported cautious restocking amid mixed Q3 consumption forecasts. Import pressure from Asian producers also limited upward movement in spot prices.
• The Polyaluminium Chloride Production Cost Trend in Europe was steady, with slight reductions in raw material cost offset by rising compliance and emission costs.
• The Polyaluminium Chloride Demand Outlook for Q3 remains modest. While utilities may see consistent volume, broader industrial demand is expected to remain sluggish unless macroeconomic activity improves.
• The Polyaluminium Chloride Price Forecast suggests no sharp shifts, with minor downward pressure expected unless feedstock costs or industrial uptake improve in Q3.
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.
