Ferric chloride

Ferric Chloride Market Dynamics Report (Recent Commodity Market Intelligence)

I. Price Trends
- Benchmark Price: As of July 21, 2026, the Business Network’s benchmark price for ferric chloride stood at RMB 2,775.00 per metric ton—unchanged from the beginning of the month and at its annual low (annual minimum: RMB 2,766.67/ton; annual maximum: RMB 2,916.67/ton).
- Market Quotations:
- Shandong Region: Shandong Yushuo Chemical Co., Ltd. quoted RMB 2,600/ton (anhydrous, ≥98% purity; packaged in 50-kg bags; delivery location: Jinan), valid through July 21; Shandong Shuojia Chemical Co., Ltd. quoted RMB 2,600–2,700/ton (anhydrous, ≥96% purity).
- Henan Region: Henan Senti Environmental Protection Technology Co., Ltd. quoted RMB 2,750/ton (domestically produced; delivery location: Zhengzhou); Henan Zhengyuan Water Treatment Materials Co., Ltd. quoted RMB 2,900/ton (solid, 98% purity; delivery location: Zhengzhou).
- Other Regions: Shanghai Shijian Industrial Co., Ltd. quoted RMB 4,050/ton (produced in Shandong; delivery location: Shanghai); Chengdu Rongjiaxin Chemical Products Co., Ltd. quoted RMB 4,200/ton (produced in Shandong; delivery location: Sichuan).

II. Market Developments
- Regional Price Differentials: Prices in the Shandong region are generally lower than those elsewhere—primarily due to intense local competition among producers and relatively low logistics costs. In contrast, higher prices observed in Shanghai and Sichuan reflect regional supply-demand imbalances and brand-related premium pricing.
- Corporate Updates:
- Export Activity: On July 14, Foshan Gaoming Kelang Environmental Protection Technology Co., Ltd. completed its first export of 26.8 metric tons of ferric chloride solution to overseas markets—marking an accelerated pace of internationalization for environmental protection chemical industries in the Guangdong–Hong Kong–Macao Greater Bay Area.
- Capacity & Demand: Domestic environmental policies continue driving demand growth in water treatment applications; however, the liquid ferric chloride segment faces intense competition among small- and medium-sized enterprises (SMEs) due to relatively low technological barriers—exerting downward pressure on prices.
- Industry Trends:
- Application Segments: Steady demand persists across water treatment (as a flocculant), electronic etching, and pigment manufacturing—with water treatment accounting for approximately 51% of total consumption.
- Technological Advancement: Enterprises are optimizing production processes and enhancing product purity (e.g., anhydrous ≥98% grade) to strengthen competitiveness and meet growing demand for high-end applications.

III. Analysis & Assessment
- Reasons for Price Stability:
- Balanced Supply-Demand: No significant capacity expansions or policy shocks have occurred recently, resulting in a relatively balanced market.
- Cost Support: Prices of key raw materials—including iron ore and hydrochloric acid—have remained largely stable, exerting minimal impact on ferric chloride production costs.
- Causes of Regional Price Differences:
- Logistics Costs: As a hub of China’s chemical industry, Shandong benefits from a well-developed logistics infrastructure, lowering transportation expenses.
- Brand Premium: Enterprises in Shanghai and Sichuan maintain higher pricing through brand building and optimized distribution channels.
- Export Implications: The Foshan export case illustrates how domestic producers are leveraging overseas markets to alleviate domestic competitive pressures. However, exporters must remain vigilant regarding potential cost implications arising from international regulatory frameworks—such as the Globally Harmonized System of Classification and Labelling of Chemicals (GHS).

IV. Outlook
- Short-Term (1–3 months):
- Price Trend: The benchmark price is expected to remain within the range of RMB 2,750–2,800/ton. Regional price differentials may experience minor fluctuations due to seasonal logistics constraints (e.g., summer heat limiting transport efficiency).
- Market Focus: Stricter environmental inspections may phase out inefficient capacities, thereby promoting industry consolidation and benefiting leading enterprises.
- Medium-Term (6–12 months):
- Demand Growth: Water treatment demand is projected to rise steadily with accelerated urbanization, driving overall ferric chloride consumption up by 5–8%.
- Technology Competition: Market share of high-purity anhydrous products (e.g., industrial-grade ≥99%) is expected to expand, requiring enterprises to increase R&D investment to sustain competitiveness.
- Long-Term (1–3 years):
- Industry Consolidation: SMEs facing mounting cost pressures may exit the market via mergers, acquisitions, or business transformation—potentially raising the industry’s CR10 (combined market share of the top ten players) from the current 52% to over 60%.
- Green Transformation: Driven by circular economy policies, production technologies utilizing scrap iron and recovered hydrochloric acid will likely become mainstream—reducing environmental impact while simultaneously cutting production costs.