Global Inflation elevates the prices of Chlorine in March
- 23-Mar-2022 3:09 PM
- Journalist: Li Hua
The price of Chlorine rose sharply in March, in the wake of strong demand from the national and regional market. Market players have been forced to revise their offerings to boost profitability. In addition, they also had to deal with the rising input costs, a situation that has remained a major concern for domestic producers as it has long squeezed their margins. Meanwhile, domestic traders took advantage of the shortage and increased their bids on existing inventory. Additionally, demand fundamentals for the product from the downstream polymer industry remained favorable, showcasing an upward trend for the prices of Chlorine.
Chlorine acts as a vital feedstock for the chlor alkali industry. The prices are mainly increasing due to the growing demands from the pharmaceutical and agrochemical industries and the call for PVC from the development sector. The supply chain is being affected mainly because of the ongoing geopolitical tension. Shortage of chlorine has been affecting the Europe marketplace majorly. As Russia is an important exporter of chlorine for Europe, the chlorine expenses in Germany surged to massive ranges following unsure plant working costs and excessive electricity expenses. Although electricity expenses with admire to the preceding area marginally eased, they remained at better ranges with admire to the first half of the ultimate year.
Chlorine price surge, helped by the growing demand from the packaging industry, the market is expected to witness further growth in the forecast period. As per ChemAnalyst, “As Liquid Chlorine is a major raw material for PVC manufacturing, its prices are expected to continue tracing an upward trajectory with the likelihood of an increment in its demand from PVC segment as the economy is likely to gather appreciable pace by the end of Q1 2022.”