2-[(Carboxymethyl)thio]benzoic acid

Recent Market Intelligence Report on Polyaluminum Ferric Chloride (PAFC)

I. Price Dynamics
- Recent Price Trend:
- From July 1 to July 16, 2026, the reference price for polyaluminum chloride remained stable at RMB 1,811.67 per ton.
- Starting July 17, the price declined to RMB 1,778.33 per ton—a decrease of 1.84%—and remained at this level through July 21.
- Regional Quotation Differences:
- Henan Province:
- Henan Kaijie Water Treatment Co., Ltd. (Al?O? content: 26%): RMB 1,050 per ton.
- Henan Shunzhibang Environmental Protection Technology Co., Ltd.:
Product with Al?O? ≥ 20% and Fe ≥ 2%: RMB 750 per ton.
Product with Al?O? ≥ 29% and Fe ≥ 3%: RMB 860 per ton.
Product with 23% Al?O? content: RMB 820 per ton.
- Henan Zhengyuan Water Purification Materials Co., Ltd.:
Product with 22% Al?O? content: RMB 1,150 per ton.
Product with 28% Al?O? content: RMB 1,650 per ton.
- Jiangsu Province: Nantong Zhonghe Chemical New Materials Co., Ltd. (national standard product): RMB 815 per ton.

II. Market Supply and Demand Analysis
- Demand Side:
- From July to December 2026, nationwide procurement tenders for polyaluminum chloride (iron) totaled 37,065 tons, covering municipal wastewater treatment, industrial wastewater treatment, dyeing plants, and other sectors.
- Demand is driven by environmental policies, with sustained growth in applications such as municipal wastewater treatment plant upgrades and high-concentration industrial wastewater treatment in industrial parks.
- Supply Side:
- Henan Province hosts a relatively large number of suppliers, resulting in intense price competition; some enterprises have lowered quotations to capture market share.
- Suppliers in Jiangsu Province offer comparatively lower quotations, possibly benefiting from regional industrial chain integration or optimized logistics costs.

III. Industry Developments and Policy Impacts
- Policy Drivers:
- As the “14th Five-Year Plan” for Ecological Environment Protection enters its final phase, local governments are accelerating efforts to fill gaps in environmental infrastructure, boosting demand in municipal wastewater treatment.
- Green transformation in industrial sectors continues steadily; water recycling rate requirements for high-water-consumption industries—including steel, papermaking, and dyeing—are being tightened, increasing demand for high-performance coagulants.
- Technological Upgrading:
- Some enterprises are intensifying R&D investment and deploying intelligent production lines to enhance product quality consistency and cost control capabilities, thereby consolidating market position.
- With new-type urbanization progressing, newly built and upgraded water supply plants and stations in county-level and sub-county areas are expanding, offering broad opportunities for market penetration into lower-tier regions.

IV. Price Volatility Factor Analysis
- Raw Material Costs:
- Prices of bauxite and iron salts rose by 9.3% and 6.7%, respectively, in 2025, squeezing enterprise profit margins. However, the recent decline in PAFC prices may reflect supply-chain cost optimization or strengthened buyer bargaining power.
- Market Competition:
- Intense price competition persists in Henan Province due to supplier density; some enterprises adopt low-price strategies to expand market share.
- Jiangsu Province suppliers maintain relatively low quotations, likely leveraging regional industrial chain advantages or logistics cost efficiencies.
- Seasonal Demand:
- July–December represents the traditional peak season for water treatment chemicals; however, the recent price decline may indicate ample supply or adjustments in buyer procurement timing.

V. Outlook and Recommendations
- Short-Term Outlook:
- Price Trend: PAFC prices may remain range-bound at relatively low levels amid raw material cost fluctuations and competitive pressures; however, policy-driven demand growth could provide price support.
- Regional Divergence: Fierce price competition in Henan Province is likely to continue, while Jiangsu Province may sustain pricing stability owing to industrial chain advantages.
- Long-Term Trends:
- Market Scale: China’s high-efficiency composite polyaluminum ferric chloride industry is projected to reach RMB 19.98 billion in 2026, with a compound annual growth rate (CAGR) exceeding 6.5%.
- Technological Advancement: Intelligent production lines and integrated industrial chain layouts will become core competitive advantages, driving industry consolidation and concentration.
- Recommendations:
- For Enterprises: Monitor raw material cost volatility and optimize supply chain management; increase R&D investment to enhance product value-added; explore emerging application areas (e.g., new energy, soil remediation).
- For Investors: Prioritize leading enterprises with proprietary core technologies, economies of scale, and strong customer resources; exercise caution regarding risks associated with cut-throat pricing competition and overcapacity.