What is driving China's anhydrous aluminum chloride market structure and regional supply?

What is driving China's anhydrous aluminum chloride market structure and regional supply?
China's anhydrous aluminum chloride capacity is heavily concentrated in East China, with Jiangsu and Shandong provinces accounting for roughly half of domestic output. Key producers include Shandong Kunbao New Materials, Shandong Shengong Chemical, and Zhanhua Licheng Fine Chemical. Domestic production reached 258,100 tonnes in 2023 against demand of 246,000 tonnes, implying a modest surplus. The market is valued at around CNY 1.312 billion. Producers predominantly use the metallic aluminum route, reacting aluminum ingots with chlorine gas. The product's low substitutability in Friedel-Crafts catalysis underpins stable demand across pharmaceuticals, agrochemicals, dyes, and fragrances. Industrial-grade anhydrous material (99% purity) is quoted at CNY 5,200-6,700/tonne, while reagent-grade commands CNY 10,000-30,000/tonne. BASF remains a global leader with plants in Argentina, Germany, and Japan.