For the Quarter Ending March 2024
North America
The North American Polyaluminium chloride (PAC) market in Q1 2024 exhibited stability amidst steady demand and supply dynamics. Stable demand from municipal water treatment facilities and industrial applications contributed to market equilibrium.
Despite global supply chain disruptions, the PAC market in North America remained resilient, with sufficient product availability to meet demand. Meanwhile, Prices for PAC remained relatively steady during Q1 2024, supported by balanced supply-demand dynamics and consistent raw material costs.
Ongoing adherence to environmental regulations governing water treatment further underpinned market stability. During the quarter, the North American PAC market maintained its stability, with continued demand from water treatment facilities and industrial sectors expected to sustain market equilibrium.
APAC
In Q1 2024, the APAC Polyaluminium Chloride market witnessed significant price fluctuations, mainly declining. Declining raw material costs, particularly Aluminium Chloride resulting in weak production expenses. Decreased demand from downstream sectors led to excess inventory, prompting sellers to offer discounts. China experienced the most pronounced price changes due to lower production costs and reduced international demand. Despite challenges, the Purchasing Managers' Index (PMI) remained stable, signalling manufacturing sector expansion. Compared to Q1 of the previous year, prices declined by 88%, although they slightly rose compared to the previous quarter in 2024. Concluding, the quarter-ending price for Polyaluminium Chloride in India was USD 480/MT FOB JNPT. Overall, Q1 2024 exhibited a negative pricing environment for Polyaluminium Chloride in APAC, driven by decreased production costs and declining demand.
Europe
During Q1 2024, Germany's Polyaluminium Chloride market faced logistical disruptions due to Red Sea unrest and reduced downstream activity. German producers curtailed production since February 2024 due to disrupted supply chains. Concerns heightened over potential port closures during March 2024 Easter holidays. Despite a surge in export value in January 2024, indicative of increased production, cautious downstream industries, influenced by global economic sluggishness and high interest rates, subdued Polyaluminium Chloride demand in Europe. Amid supply disruptions, cautious supply management and discounts were adopted in the feedstock Aluminium Chloride industry. Early 2024 saw significant European market growth driven by lower upstream prices. However, supply concerns emerged in March 2024, particularly with impending German port closures.
