Aluminium Chloride Price Trend and Forecast

Aluminium Chloride Regional Price Overview

Get the latest insights on price movement and trend analysis of Aluminium chloride in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Aluminium Chloride Price Trend for the Q3 of 2024

In the third quarter of 2024, the price trend of aluminium and its derivatives showed fluctuations, with prices moving up and down throughout the period. These changes were influenced by regional dynamics, feedstock supply, and demand from downstream sectors. At the beginning of the quarter, prices continued their downward trend from the previous period, declining in both Asian and European markets due to a plentiful supply of aluminium.
 

Aluminium Chloride Price Chart

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The slowdown in the aluminium industry also impacted the price of aluminium chloride. Later in the quarter, prices began to rise but remained volatile as the market adopted a cautious stance, awaiting the Federal Reserve's interest rate decisions. In addition, several logistical challenges emerged, including heavy rains across Asia, hurricanes in North America, and rail strikes in Canada. These disruptions posed risks to the supply of essential commodities, such as hydrochloric acid, a key feedstock in the production of aluminium chloride.

In North America, aluminium prices were expected to benefit from anticipated interest rate cuts by the U.S. Federal Reserve. When the Fed announced a 50-basis point reduction, aluminium prices saw an increase. This rise was primarily due to the weakening of the U.S. dollar, which made aluminium more affordable for international buyers using other currencies, driving prices higher both domestically and globally.

Analyst Insight

According to Procurement Resource, the prices to aluminium chloride are expected to incline in the near future influenced by the enthusiasm brought by the U.S. Federal Reserve interest cuts, however, subdued demand and logistical challenges still pose challenges for the rising prices.
 

Aluminium Chloride Price Trend for the Q2 of 2024

In the second quarter of 2024, the price trends of aluminum and its derivatives, such as aluminium chloride, exhibited varied regional dynamics influenced by supply and demand factors. In Asia, aluminum prices were initially driven upward due to high raw material costs and limited supply exacerbated by operational halts at major production units like Rio Tinto's Australian facility, visible in the fluctuations in the prices of aluminium chloride. However, as June approached, demand from sectors such as photovoltaic modules weakened, and increased production capacities in Yunnan added downward pressure, leading to a stabilized market by the quarter's end.

In Europe, aluminum faced significant challenges with declining production rates, especially in Germany, where high energy costs and competitive pressures from Turkish imports affected the market. Despite attempts to boost recycled aluminum production, the overall market sentiment remained subdued due to low demand from key sectors like construction and electric vehicles. This competitive economic environment led to a cautious outlook for aluminum chloride prices. In import dependent nations, too aluminum prices saw a complex dynamic with the Biden administration imposing additional tariffs on Chinese imports amidst an already strained market due to sanctions on Russian trade. While this led to an initial price increase, domestic production eventually caught up, stabilizing the market.

Analyst Insight

According to Procurement Resource, the price of Aluminium Chloride is expected to oscillate in a narrow range in the forthcoming quarters as the weak trading patterns and insufficient cost support from the downstream industries as well as the feedstock aluminium metal sector is expected to exert a negative influence on aluminium chloride price trend.
 

Aluminium Chloride Price Trend for the Q1 of 2024

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Aluminium chloride prices showcased notable upward fluctuations in the Indian markets during the said period of Q1 2024. The monthly average prices traversed from about 632 USD/MT (CIF) in January’24 to around 753 USD/MT (CIF) in March’24.  This caused an approximate 16% incline in the average aluminium chloride prices in the Indian market during the said quarter. In the Indian markets, both the feedstocks for aluminium chloride, aluminium, and chlorine exhibited an escalation in prices, causing raw material costs for aluminium chloride to rise along.

Heightening crude oil prices further strengthened the upstream prices for aluminium chloride. Thereby, the revenue margins greatly tightened for aluminium chloride manufacturers. This gave an organic push to the market rates. On the other hand, the domestic demand was also supportive of the incline in the price graph. Consumption increased from the wastewater treatment industries and wood preserving industries. Therefore, the Indian market recorded growing prices for aluminium chloride during the said period.

Analyst Insight

According to Procurement Resource, Aluminum Chloride prices are expected to remain inclined for some time in the coming months as well. The supply and demand dynamic suggests a positive price trajectory going forward.
 

Aluminium Chloride Price Trend for the Year 2023

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Aluminium Chloride showcased a mixed price trend during the said time period of the year 2023. In India, the aluminium chloride market started on a very stable note as the prices exhibited very feeble fluctuations initially. The Indian aluminium chloride market was largely plateaued for the majority of the first half of the year. However, in the second half of the year, suppliers struggled to maintain the price trajectory, especially in the fourth quarter, as the prices plunged deep in the last three months of the year.

The prices averaged at around 789 USD/MT (CIF, India) in January’23 in the Indian domestic market which reached around 760 USD/MT by the end of the second quarter. However, by the end of the fourth quarter, the average monthly prices reached around 665 USD/MT in December’23, showcasing an approximate annual depreciation of around 15%, the majority of which came across in the year-ending quarter of 2023.

The dull industrial demands during the long New Year holiday season, coupled with a substantial decline in export orders owing to freight issues of the Red Sea, pushed the market down during this time. Overall, muted market sentiments were witnessed in H2’23.

Analyst Insight

According to Procurement Resource, given the sharp decline in the latter months, the aluminium chloride prices are expected to steadily rebound in the coming months as the trade dynamics improve going forward.

Procurement Resource provides latest prices of Aluminium 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.