Review of Poly Aluminum Chloride Market in 2025

According to the commodity market analysis system of 100ppi.com, the domestic market average price for solid (industrial grade, Al₂O₃ content ≥28%) poly aluminum chloride (PAC) in 2025 started the year at 1,778.33 RMB/ton and ended at 1,711.67 RMB/ton, representing an annual decline of 3.75%. The yearly high occurred on January 1st at 1,778.33 RMB/ton, while the yearly low was recorded on September 21st at 1,695.00 RMB/ton, resulting in a maximum annual price fluctuation of 4.69%.

First Half: Sustained Downtrend
The market experienced a stepwise decline from February to July. Prices dropped to 1,761.67 RMB/ton by February 10th, followed by a brief stabilization within the range of 1,745 RMB/ton from March to May. The downward trend accelerated from June to July, reaching the annual low of 1,695 RMB/ton on July 20th, marking a cumulative decline of 4.69% from the beginning of the year.

Second Half: Stabilization at Low Levels
Prices remained at the low level of 1,695 RMB/ton from August to September. Starting in October, supported by factors such as raw material cost support and a marginal recovery in downstream demand, prices saw a slight rebound to 1,711.67 RMB/ton, where they remained until year-end.

Overall, PAC prices retreated from the year's high at the beginning of the year, ending 3.75% lower by year-end, indicating the overall market operated in a relatively weak state.

2026 Poly Aluminum Chloride Market Forecast

Cost Perspective:
According to 100ppi.com's analysis, the domestic hydrochloric acid market experienced wide fluctuations and a downward trend in 2025. The average price started the year at 110 RMB/ton and ended at 107.50 RMB/ton, with an annual decline of 2.27%. East China is one of the primary hydrochloric acid production regions in China. Notably, Jiangsu Province is a key production base, leading the nation in output. The "14th Five-Year Plan for the Development of Raw Material Industries" issued by the National Development and Reform Commission explicitly calls for enhancing the comprehensive utilization level of by-products from the chlor-alkali industry. It encourages enterprises to establish integrated recycling systems to achieve efficient co-production of chlorine, hydrogen, and hydrochloric acid. This policy directly promotes the upgrade of the hydrochloric acid production model dominated by the chlor-alkali industry.

Supply Perspective:
Incomplete statistics indicate that China's current PAC production capacity is mainly concentrated in provinces with well-developed raw material supplies and industrial infrastructure, such as Henan, Shandong, and Jiangsu. Henan, as the core production area, accounts for over 40% of the national capacity. The industry's average capacity utilization rate for the year was approximately 55%-60%, remaining at a relatively low level. Small and medium-sized manufacturers, affected by rising environmental costs, financial pressures, and low-price competition, generally operated at utilization rates below 40%. In contrast, leading enterprises, leveraging scale and technological advantages, achieved capacity utilization rates of 70%-80%.

Demand Perspective:
The ongoing implementation of the national "14th Five-Year Plan" for water ecological environment protection, along with accelerated projects such as the upgrading of urban wastewater treatment plants and the remediation of black and odorous water bodies, is expected to significantly boost demand in the water treatment sector. With the recovery of domestic consumption and the return of overseas orders, operating rates in industries like papermaking and dyeing are anticipated to gradually increase, driving growth in PAC procurement. The promotion and application of high-efficiency PAC in treating complex wastewater will increase product consumption per unit and simultaneously generate incremental demand for high-end products.

Market Outlook:
The domestic PAC market in 2026 is forecasted to exhibit a pattern of fluctuating recovery under a weak supply-demand balance. Prices are likely to fluctuate within the current low range. While the overall price center may see a slight increase compared to the second half of 2025, significant upward potential remains limited.