Liquid Chlorine Prices Overview

Market Overview

Quarterly Update on Global Chlorine Market
 
For the Quarter Ending September 2020
 
Asia
 
As COVID-19 restrictions were eased across major Asian economies, a number of Chlor-Alkali producers reported operations reversing to normal in the third quarter. Buoyed by improvement in the offtakes by several Chlorine derivative manufacturers, a much-needed bounce back in the third quarter results pushed Chlor-Alkali producers to proceed with their scheduled forward integration plans in the Chlorine-Caustic supply chain. An Indian Chlor-Alkali giant reported a double-digit EBITDA growth in Q3 as demand for chlorine value-added products remained upbeat during the quarter, driven by rising consumption from healthcare and hygiene, drinking water and other industrial segments. Easing Caustic demand, however kept the output low causing industrial grade liquid Chlorine to remain rangebound within USD 200-260 per MT CFR Southeast Asia.
 
Europe
 
Chlorine demand rose after witnessing a massive fall in Q2 as demand from the downstream PVC producers picked-up after a sharp rebound was observed in the construction activity later in Q3. With Chlor-Alkali operations settling at above 80% rates as lockdowns eased, traders could observe more intense buying for Chlorine derivatives despite hovering fears of second coronavirus wave in several European states. While prospects for Chlorine remained strong, market players were seen sort of finding a mid-way to strike out balance between PVC and Caustic as sales of the latter was still under pressure.
 
North America
 

The North American Chlorine industry remained subjected to acute volatility during the third quarter with supply largely deterred from outages caused due to high winds as a result of Hurricane Laura and a series of regional storms thereafter. Chlor-Alkali Production rates were held at about average levels in the first half of the quarter amid softening demand for the by-product Caustic Soda lye. Constrained Chlor-Alkali rates and a lack of Chlorine feedstock for PVC production further triggered potential shortage in the PVC export volumes among some US producers. The demand, however, gathered uptrend later after a sharp pick-up in enquiries for Chlorine derivatives such as EDC (ethylene dichloride), VCM (vinyl chloride monomer) and PVC (polyvinyl chloride) was observed. A leading manufacturer reported shipment of some railcar Chlorine at the highest price since 2003 during the third quarter.

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Services
Market Analysis

Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for Acrylonitrile is calculated considering the production, import, export and inventory-levels on the country and regional level markets.

Pricing Analysis

Acrylonitrile price is correlated with the price trend of crude oil, demand-supply gap, Propylene and with movement across the downstream derivatives such as acrylonitrile-butadiene-styrene (ABS), styrene-acrylonitrile (SAN) etc.

Company Profile

Basic details and information on financial performance of leading global players in the Acrylonitrile market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.

News & Deals

Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.

Methodology

ChemAnalyst gathers information through primary research surveys conducted with various Chlorine manufacturers, spread across the domestic and international markets, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of the company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
 
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Chlorine market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
 
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
 
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence the Global Chlorine market.
 
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on monthly and yearly basis.
 

Finally, region-specific markets for Chlorine are analyzed and region-wise demand pattern is tracked.

About

Liquid Chlorine is produced as a co-product with Caustic Soda which is manufactured primarily by the electrolysis of sodium chloride solution, often called brine. The electrolysis involves either of membrane, diaphragm or mercury cell technology. Chlorine can also be produced through several other techniques such as, via electrolysis of potassium chloride brine in membrane or mercury cells with simultaneous production of potassium hydroxide; by electrolysis of molten sodium or magnesium chloride; by electrolysis of hydrochloric acid; or by non-electrolytic processes. The key raw material is the common salt, usually found in the underground deposits which is pumped to the surface through a high-pressure water supply. The electrolysis of brine produces nearly 1.1 tonne of 100% caustic soda with each tonne of Chlorine. Chlorine is widely used for manufacturing PVC via the intermediates ethylene dichloride (EDC) and vinyl chloride monomer (VCM). In addition, it is also used to produce several organic and inorganic chemicals, agrochemicals and pharmaceuticals as well as chemicals for water treatment and sterilization. Since it is co-produced with Caustic Soda, the supply of Chlorine is largely influenced by the Caustic supply chain. However, because these two products are consumed in different end-use industries, making it a challenge for producers to balance the demand curve of both the products.