Asia
In Asia, aluminium chloride prices stayed firm during the said quarter. This was largely due to rising costs across the aluminium industry, including higher alumina prices, which is a key input. Chinese alumina production increased, but tight spot supply and high futures prices kept alumina expensive. As a result, downstream chemicals like aluminium chloride also saw cost pressure.
At the same time, some producers shifted their focus from liquid aluminium to other forms like casting ingots, affecting the supply of by-products used in aluminium chloride production. Although demand from end-users such as water treatment and industrial chemical sectors was seasonally lower, cautious trading and supply concerns helped keep prices supported.
Europe
In Europe, aluminium chloride prices edged up slightly. The region saw stable but modest demand, while supply challenges remained due to global raw material tightness. The European Commission’s anti-dumping duties on certain Chinese imports, including fused alumina, created uncertainty in the market. This led buyers to secure materials early, including chemicals like aluminium chloride, to avoid future disruptions. Although downstream industries like water treatment and chemicals didn’t show strong demand, the trade policy changes added pressure to prices. Overall, aluminium chloride prices remained steady to slightly higher despite the summer slowdown.
North America
In North America, aluminium chloride prices also leaned higher during the third quarter. The U.S. government expanded tariffs on many aluminium-related products, which raised input costs for producers. This impacted the entire supply chain, including aluminium chloride.
Local producers faced higher operating costs due to expensive raw materials and energy. Demand from key sectors like municipal water treatment and industrial cleaning remained moderate but steady. Low inventories and delays in getting parts and materials further tightened the market. As a result, prices stayed firm throughout the quarter.
Analyst Insight
According to Procurement Resource, Aluminium Chloride prices may remain stable in the short term, supported by high production costs and trade-related issues. However, stronger demand will be needed for any major price rise in Q4’25.