Is the global potassium aluminum sulfate market facing oversupply or structural shortage?

Is the global potassium aluminum sulfate market facing oversupply or structural shortage?
Global potassium aluminum sulfate supply is moderately concentrated, with major producers in China, the US, and Europe. Chinese manufacturers, led by Wenzhou Alum Mine and Zibo Honggui Donghua, benefit from low-cost aluminum hydroxide and sulfuric acid, making China a net exporter. Demand growth is uneven: traditional sectors like water treatment and papermaking grow at GDP-linked rates, while food applications face regulatory headwinds in China, the largest consumer. Emerging applications in cosmetics and pharmaceuticals offer higher margins but smaller volumes. The market is not in acute oversupply, but capacity additions in China, driven by alumina refinery by-products, could pressure prices if food demand contracts faster than expected. Conversely, stricter environmental controls on alum production—particularly wastewater treatment—could constrain supply. The 2024-2030 CAGR projections suggest moderate growth, implying balanced markets unless regulatory shocks occur.