Recent Market Intelligence Report on Polyaluminum Sulfate (PAS)

I. Market Price Dynamics
1. Recent Quotations (May 19–26, 2026)
- Henan Region:
Henan Shunzhibang Environmental Technology Co., Ltd.: Solid (Al?O? ≥15.8%) at RMB 1,050/ton; Liquid (10% concentration) at RMB 200/ton.
Henan Kaijie Water Treatment Co., Ltd.: Solid (Al?O? ≥15.8%) at RMB 1,020/ton; Powdered (60 mesh) at RMB 1,100/ton; Liquid (10% concentration) quotation not updated.
Henan Baoxin Environmental Technology Co., Ltd.: Solid at RMB 1,000/ton.
Henan Huiyihai Water Purification Materials Co., Ltd.: Premium-grade (15.8% Al?O?) at RMB 1,200/ton.
- Hubei Region:
Hubei Qiba Jiu Chemical Co., Ltd.: Solid at RMB 950/ton (note: the listed '10% liquid' quotation is erroneous—the company only supplies solid product); price remains stable.
- Business Network Benchmark Price:
Benchmark price on May 25 stood at RMB 1,030/ton, up 1.73% from the beginning-of-month level (RMB 1,012.5/ton), indicating short-term upward price momentum.

2. Price Range:
Solid PAS: Mainstream quotations range from RMB 950 to 1,200/ton, with premium-grade products (e.g., Henan Huiyihai) commanding higher prices.
Liquid PAS: Quotations range from RMB 200 to 210/ton, exhibiting relatively low volatility.

II. Market Driving Factor Analysis
1. Demand-Side Factors:
Water Treatment Sector: Accounts for over one-third of total market demand; accelerated urbanization and tightening water quality standards (e.g., total phosphorus limit reduced to 0.5 mg/L) are driving steady demand growth.
Industrial Applications: Stable demand from wastewater treatment, papermaking, and textile dyeing industries; initiatives such as industrial park “zero direct discharge of wastewater” construction and rising reclaimed water reuse targets (e.g., >25% national target by 2026) are contributing incremental demand.
Emerging Applications: New application areas—including landfill leachate treatment and soil remediation—are expanding rapidly and expected to contribute over 30% of future demand growth.

2. Policy Drivers:
Environmental Regulations: National “Dual Carbon” strategy and the “Action Plan for Emerging Pollutant Control” are accelerating green transformation across the industry, imposing stricter requirements on energy consumption and emission standards for manufacturers.
Water Efficiency Improvement Initiatives: The “Key Industrial Sectors’ Water Efficiency Improvement Action Plan (2025)” mandates a minimum 65% substitution rate of composite polyaluminum ferric sulfate (PAFS) for steel, textile dyeing, and papermaking industries—indirectly boosting PAS demand.

3. Cost-Side Factors:
Raw Materials: Supply of bauxite and industrial sulfuric acid remains stable; however, fluctuations in international energy prices and domestic mineral resource regulation may increase input costs—posing a key profitability risk.
Logistics Costs: Geographic transport constraints for solid products have weakened, yet rising hazardous-chemical logistics costs may affect overall pricing structure.

4. Competitive Landscape:
Corporate Strategies: Leading enterprises are enhancing market share through improved product quality (e.g., high-purity, low residual aluminum ion formulations), process optimization, and strategic M&A or partnerships.
Technological Substitution: Composite PAFS is gaining traction due to its cost-effectiveness—offering an 18.7% lower per-ton-of-wastewater phosphorus removal cost versus polyaluminum chloride (PAC)—potentially diverting market share from PAS.

III. Future Trend Outlook
1. Price Forecast:
Short Term: Prices are expected to remain relatively stable, supported by robust demand and cost pressures; however, raw material volatility and intensifying competition may trigger localized adjustments.
Long Term: As industry supply capacity expands and technology advances (e.g., rising share of high-value-added products), upside potential for broad-based price increases is limited—though structural opportunities persist.

2. Demand Outlook:
Market Scale Growth: Overall demand is projected to continue growing; the 2026 total market size (including aluminum sulfate and polyaluminum chloride) is forecast at RMB 34.94 billion, with PAS’s share likely to rise further, driven by emerging applications.
Structural Optimization: Rising demand for high-purity, low-residual free-acid, and biodegradable PAS variants reflects technological innovation as the core growth driver.

3. Industry Risks:
Policy Risk: Stricter environmental standards may accelerate the exit of small- and medium-sized enterprises (SMEs), further increasing industry concentration.
Market Risk: Intensified domestic and international competition, along with technological substitution (e.g., by composite PAFS), could compress profit margins.

IV. Strategic Recommendations for Enterprises
1. Product Upgrading: Focus on high-value-added products (e.g., high-purity, low-residual aluminum ion formulations) to enhance gross margin per unit.
2. Technology Integration: Strengthen R&D on aluminum–iron synergistic effects and explore composite products to mitigate substitution risks.
3. Market Expansion: Deepen penetration into emerging segments—including industrial parks and reclaimed water reuse projects—to capture incremental demand.
4. Cost Management: Optimize raw material procurement strategies and implement measures to reduce exposure to energy and logistics cost volatility.