Polyaluminum Chloride (PAC) Prices (Q1 2022)
Domestic mainstream quotations for industrial polyaluminum chloride were 2373.75 RMB/MT on March 29. The Chinese market had mostly stayed stable. Due to strict epidemic prevention and control measures in several sections of important industrial areas, manufacturers' output remained normal, spot inventories remained adequate, and downstream procurement volume did not dramatically improve. Transit of raw materials and finished products was impeded to some extent. The market for raw and domestic hydrochloric acid fluctuated, downstream demand remained consistent, and the market for upstream liquid chlorine climbed marginally.
Polyaluminum Chloride (PAC) Prices (Q4 2021)
After October, the majority of Asian countries' HCl prices fluctuated in a limited range. The drop in demand for the chemical in India following the festive season had a direct impact on its cost. Due to constant demand, the PAC sector's pricing remained stable. In China, the price was somewhere around 2600 RMB/MT in November.
Following the limited product availability, market sentiment remained strong throughout Q4. Prices of feedstock HCl rose sharply at the start of November as availability of the basic ingredient Chlorine remained limited, with companies looking for the best deal to offset high energy costs. Natural gas prices in Europe rose at an unprecedented rate, raising fears of a severe power shortage. Several European chemical companies raised their product pricing in response to sharp increases in energy prices. HCl prices were recorded at 125 USD/MT FOB Hamburg.
HCl prices in North America increased significantly in early Q4, owing to a prolonged shortage of chlorine in the region. Oxychem's Chlor-Alkali plant's force majeure continued to affect HCl pricing in Q4. The Ex-Works price was assessed at 165 USD/MT. As a result, the price of PAC increased as well.
Polyaluminum Chloride (PAC) Prices (Q1-Q3 2021)
During the first quarter of 2021, the Asian HCL market was neutral. Because major Chinese manufacturers' inventory levels were lowered during the Lunar New Year holidays in China, prices rose in Q1 2021. In the Indian market, however, the average price of HCL fell by 10% due to adequate stock availability and lower demand from the downstream sector. The pricing pattern of PAC in Asian markets was directly influenced by price fluctuation.
HCL prices surged throughout the third quarter, owing to restricted feedstock availability and strong demand from downstream sectors in Q3 2021. Despite the supply chain interruption induced by port congestion, a small increase in HCl pricing was recorded in China due to the abundant availability of the commodity in this timeframe. In India, acid prices rose significantly, owing to strong demand from downstream industries in both the domestic and foreign markets.
HCl demand from downstream industries fell in the first quarter of 2021. Lower downstream consumption was one of the main explanations, notwithstanding an increase in COVID 19 instances across the region. This coincided with a decrease in the market's demand for PAC and related items. As a result, the prices dropped.
During the second quarter, the HCl market held steady. Throughout the quarter, demand for the feedstock increased somewhat, while supply remained tight enough to keep the price upswing going.
Throughout the third quarter, demand grew steadily, but supply remained tight, allowing the price increase to continue. The downstream sectors, such as PAC, were upbeat.
Due to a persistent lack of feedstock chemicals and interrupted production activity, prices rose dramatically across the region. Multiple hurricanes had already caused a severe shortage of HCl in Q4 2020, but devastating winter storms halted all manufacturing efforts again in Q1 2021.
HCl prices in North America remained stable in the second quarter, owing to constrained availability of the feedstock chlorine and improving downstream demand. Because of the severe shortage of chlorine in the United States as a result of the lengthy shutdown of major chlor-alkali plants, the price of practically all chlorine derivatives skyrocketed.
Prices of HCl soared by an order of magnitude in the third quarter, owing to a severe lack of chlorine in the region. As a result, PAC prices also witnessed an increasing trend. Chlorine is a necessary feedstock for the production of HCl, which is then used to make PAC. When Hurricane Ida hit the Gulf Coast of the United States in late August, many chemical plants were still reeling from the effects of winter storm Uri. Oxychem claimed force majeure at its chlor-alkali plant, severely disrupting chlorine supply in the region. The circumstances put even more pressure on the HCl market because many of the chlorine factories were already shut down at the time. As a result, the pricing trend of the chemical in this quarter was supported by restricted feedstock supply and strong demand from downstream sectors.
Polyaluminum Chloride (PAC) Prices Overview 2020
Due to the collapse of upstream isocyanate factories in various sites, the European region had a feedstock hydrochloric acid supply constraint in Q3 2020. In September 2020, HCl costs increased by 10% on a month-over-month basis. The rising cost of HCl resulted to an increase in the cost of PAC.
Due to a significant decrease in feedstock supplies in Q3 2020, manufacturers lowered manufacturing rates. HCL demand from the oil and energy sector was stifled in the third quarter due to restrictions on its use in hydraulic and fracturing operations while the auto industry slowly recovered from the pandemic's impacts. PAC prices rose due to a decline in its supply in European markets.
Procurement Resource provides latest prices of Polyaluminum Chloride. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of PAC for several regions around the globe, which are as follows:
Polyaluminium Chloride is a water chemical composed of aluminium, oxygen, hydrogen, and chlorine. It is a yellow-colored, water-soluble solid. Polyaluminium Chloride (PAC) 28 percent and Polyaluminium Chloride (PAC) 30 percent are the two forms of the chemical. This chemical has many industrial applications, but it is most commonly used in the flocculation processes used in water treatment industries.
Aluminum hydroxide is added to sulfuric acid and hydrochloric acid inside a reactor during this process. The calcium carbonate is then used to neutralise the acid. As a byproduct of this process, gypsum crystals are produced.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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