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Liquid Chlorine Prices Likely to Recover in USA and Asia as Construction Industry Shows Signs of Revival
Liquid Chlorine Prices Likely to Recover in USA and Asia as Construction Industry Shows Signs of Revival

Liquid Chlorine Prices Likely to Recover in USA and Asia as Construction Industry Shows Signs of Revival

  • 23-Aug-2023 11:57 AM
  • Journalist: Nicholas Seifield

Prices of Liquid Chlorine in the Chinese market witnessed a bullish trend in August, with an appreciation of approximately 3% in August. This is largely due to an increment in caustic soda prices, which were recorded to be appreciated by a margin of 0.9% as a response to healthy demand from the downstream soap and detergent industry. Key market players in the FMCG industry have observed a healthy increment of profits of over 9% in sales in the first half of 2023. Demand for Liquid Chlorine was also recorded to be healthy from China's major downstream of PVC manufacturing. Moreover, disruptions in the supply chain system of China continue to occur as major cities are flooded with reports of electricity being knocked in key districts in the aftermath of cyclone Doksuri. These disruptions in the supply chain have also played a significant role in the appreciation of prices of Liquid Chlorine. Furthermore, a healthy recovery of the construction industry in China is anticipated, which is indicated by the improving PMI from 94.6 in June to 95.6 in July, which may increase demand from the downstream construction industry, leading to higher prices for Liquid Chlorine. Towards the end of August 2023, prices of Liquid Chlorine are approximated to be USD 34/MT (Pipeline) Contract EXW- Xinjiang.

In India, prices of Liquid Chlorine have witnessed a marginally bearish situation, with prices declining by almost 2% in August. Demand from downstream construction industries was largely halted due to unpredictable rains of the ongoing monsoon season, which is expected to last till September. A strong anticipation of recovery of the construction industry is present, which may increase demand for polyvinyl chloride pipes, thereby appreciating the prices of Liquid Chlorine. Healthy demand from downstream FMCG soap and detergent industries is also significantly present in August, which is likely to aid in increasing prices of Liquid Chlorine, in addition to the strong recovery of the construction industry after the monsoon season. Towards the end of August 2023, prices of Liquid chlorine are approximated to be USD 70/MT Bulk Ex-Works Dahej.

In the North American market, prices of Liquid Chlorine have witnessed a marginally bullish situation, with prices showcasing an increment of 2% as costs of caustic soda inclined by almost 1.5% in August despite the construction industry underperforming in the second quarter of 2023 as evidenced by the contraction of PMI to 46.3. Demand from the construction industry was weak; however, inflationary fears amongst the local populace maintained a moderate demand from pharmaceutical industries, which have managed to maintain the situation of Liquid Chlorine bullish in the market. Towards the end of 2023, prices of Liquid Chlorine are expected to appreciate by approximately 3% as key players hope for a strong recovery of the construction industry which may increase demand from the major segment of PVC manufacturing. Towards the end of August 2023, prices of Liquid Chlorine are approximated to be USD 398/MT Bulk (Contract) DEL Texas.

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