For the Quarter Ending December 2022
North America
Liquid Chlorine prices were low in the quarter ending December of 2022 in the American market. The muted downstream Hydrochloric acid production demand along with the plunging industrial output in the last quarter of 2022. The gloomy buying confidence and escalating market uncertainties affected pricing dynamics for Liquid Chlorine throughout this quarter. The escalating inflation slowed trade activities, which has deteriorated buying sentiments amongst the market players in the downstream sector, including Hydrochloric Acid production industries. Additionally, the low offtakes and weakening market activities led to the Force Majeure in Covestro, located in Texas (USA), from 23 December 2022 to 31 December 2022. Therefore, the price of Liquid Chlorine (Contract) was quoted at USD 641/MT DEL Texas (USA) in December 2022.
APAC
The Liquid Chlorine market showcased bearish sentiments in the quarter ending December 2022. The commodity prices were impacted by the fluctuating downstream Hydrochloric acid production industry demand in the Chinese market. The slight ease in COVID-19 curbs in late November 2022 has led to a pick-up in the downstream demand. However, the Liquid Chlorine price trend remained in the southward direction in the APAC Region owing to adequate cargo availability. The limited downstream paper and textile demand and declining coal prices have resulted in lower commodity costs.
Europe
The prices of Liquid Chlorine demonstrated bearish market sentiments in the fourth quarter of 2022 due to the ample supplies and weak price support from the downstream industries such as Hydrochloric Acid and water treatment segment. The worsened demand fundamentals and high energy prices due to the European energy issues have led to production cuts in the downstream industries of the region, influencing the price trajectory of Liquid Chlorine. The declining downstream market and weakened economic conditions have led the market players to make offtakes at lower margins and diminished the competitiveness in the market amid uncertain energy prices and high inflation during the Quarter ending December 2022.
For the Quarter Ending September 2022
North America
Liquid Chlorine prices led to an upward trend during the third Quarter of 2022, owing to the high energy prices and rising input cost pressure on the Liquid Chlorine market in the USA. Meanwhile, the price elevation emerged from a stronger US dollar globally, impacting the profit margins of the market players. Downstream offers from the domestic market, such as disinfectant and Hydrochloric Acid preparation segment, remained stable in the Quarter ending September 2022. Meanwhile, Olin's declaration of reduction in the Chlor alkali capacity by the end of this year has led to an increase in the buying sentiments in the regional market of Liquid Chlorine. Thus, the price of Liquid Chlorine was assessed at USD 760/ton Contract DEL Texas (USA) in September 2022.
APAC
Liquid Chlorine price momentum showed a southward trajectory in the Quarter ending September 2022 owing to the stability in the downstream demand and substantial Chinese Yuan depreciation against the US dollar. Meanwhile, consumption in the primary Liquid Chlorine consuming Hydrochloric acid manufacturing segment was weak, impacting the commodity's costs. Rising Covid 19 cases in China have weakened production in several chemical-producing cities, such as Shanghai, amidst the lockdown restrictions. Thus, the price of Liquid Chlorine was assessed at USD 55/ton contract EXW-Xinjiang (China) during September 2022. Besides, the cost support from the upstream energy values was weak for Liquid Chlorine in the Asian market.
Europe
The prices of Liquid Chlorine demonstrated stable market sentiments in the European market due to the supply disorder and market uncertainties in the Quarter ending September 2022. The persisting impact of the conflict between Russia and Ukraine has resulted in a cut in Russian gas and oil supplies. As a ripple effect, traders and sellers struggled with high electricity costs during the third Quarter of 2022. The buying interest amongst the domestic buyers in the regional market witnessed weak sentiments, and surplus availability amid slow offtakes remained a key concern for the market players in this Quarter. Demand for the commodity from the downstream industries remained silent in the Quarter ending September 2022.
For the Quarter Ending June 2022
North America
Chlorine prices witnessed a stable trend throughout Quarter 2 of 2022 due to numerous shutdowns in North American chloralkali plants such as Olin in the US system. A Chlor-alkali plant of Olin in Texas suffered from Force Majeure in April. In addition, Westlake chlor Alkali also underwent a turnaround in mid-June along with Olin due to equipment shortage and low output. As a result of these outages, the pressure was felt by enterprises due to the limited availability of inventories. Bullish buying sentiments were witnessed amongst the buyers in May under the fears of the unprecedented supply shortage of Chlorine throughout Q2 of 2022. Thus, the price of Liquid Chlorine surged by 1% in the North American region in May.
Asia Pacific
Liquid Chlorine prices showed stability in the APAC region due to the strict Covid 19 lockdown restrictions amidst surging Covid 19 cases in several Asian countries in Quarter 2 of 2022. Under the Zero covid policy, bearish buying interest was seen amongst the local buyers. Covid outbreaks in Asian countries led to limited inquiries from the local market. Moreover, the Chlorine market was impacted by the depreciation of the Chinese currency against the US dollar, which pulled the Liquid Chlorine prices downward in China. Additionally, weak demand from the downstream primary Liquid Chlorine consuming PVC industry in this Quarter also conclusively affected the price trend for the product in India..
Europe
The price of liquid Chlorine in the European market observed a downward trend due to the high inflation pressure and the depreciation of the European currency (Euro) against US dollar supplies amidst the Russia-Ukraine conflict in the Q2 of 2022. The European market witnessed a supply shortage due to several production cuts in Q1 of 2022. Enterprises were compelled to revise their offers due to the surplus availability of inventories amid weak offtakes in the market. Moreover, demand for primary Chlorine consuming the Chlor alkali industry showed declination due to the ample availability of stocks in the European market. The price of Liquid Chlorine showed a decline of nearly 2% in the month of April.
For the Quarter Ending March 2022
North America
Chlorine prices witnessed a surge throughout quarter 1 of 2022 due to several shutdowns in North America in chlor-alkali plants. A Chlor-alkali plant of Olin with 3 million MTPA capacity in Texas underwent shut down in mid-March. Formosa plastics with a 736 KTPA capacity underwent a turnaround in mid-February. As a result of these outages, the pressure was felt by traders and manufacturers regarding the availability of materials and prices of a product. Prices of Liquid Chlorine were assessed at USD 122/MT Ex-Louisiana in the USA in March. Besides, firm demand for downstream PVC also upheld the offtakes of Chlorine in North America.
Asia Pacific
Liquid Chlorine prices declined in the APAC region due to the strict Covid 19 restrictions amidst resurgence of Covid 19 in several Asian countries in late-February. Under Zero covid policy, disruption in production activity led to the increase in production cost during Q1. However, resurgence of Covid in Asian countries led to limited enquiries from the domestic market. Demand for the product was observed lower than expected in the month of January. Moreover, the market of primary Chlorine consuming chlor-alkali industry also witnessed shutdowns and production cuts in several chemical producing industries in China such as Shanghai which ultimately led the fall in the prices of Chlorine. Price of Liquid Chlorine were assessed at USD 158/MT in the month of March in India.
Europe
Price of liquid Chlorine in the European market observed surge due to the halted production activity and disrupted supplies amidst Russia-Ukraine conflict. The supply shortage of Chlorine due to several production cuts was witnessed in the late-March in the European market. Manufacturers were compelled to revise their offers as a result of reduced availability of material. Moreover, demand from primary Chlorine consuming PVC segment also remained strong in the European market which contributed to the rise in its prices. Prices of Liquid Chlorine surged by nearly 5% in the month of March.
For the Quarter Ending December 2021
North America
As the market dynamics of Poly Vinyl Chloride (PVC) and Chlor-Alkali are intertwined, limited production of Chlorine due to low operating rates in several Caustic Soda plant as a repercussion of Ida hurricane since mid Q2 2021, continued to stress the supply of Chlorine in October as well. As the production in several Caustic Soda plants in US remained below the required level, supply of feedstock Chlorine remained restricted. However, after reaching tremendous high in October, prices eventually dropped down in line with the gradual normalcy in production activities and offseason dullness in the demand for PVC. In December, with supply outstripping the demand, Liquid Chlorine prices tumbled to USD 380 per MT FOB USGC in December.
Asia
Increase in demand for downstream Poly Vinyl Chloride (PVC) resin from pipes and fitting segment for the replacement of ageing infrastructure has caused a significant surge in the demand for liquid Chlorine in October. As Chlorine is produced as a coproduct of Caustic Soda, ample production of Caustic Soda amidst the dull seasonal demand for PVC in India caused a prominent drop in its prices. The agony of ample Chlorine supply further extended when Grasim Industry in India commenced the first phase of its Caustic Soda plant in late October. Amidst the narrowed demand and supply gap, Liquid Chlorine prices in India were assessed at USD 125 per MT Ex-Works Dahej in December. Chlorine market in China also turned bearish on the back of ample availability of downstream PVC in the second half of the quarter.
Europe
Chlorine availability in Europe remained short due to relative reduction in Caustic Soda operating rates due to high energy cost and climate crises. The force majeure by Vinnolit at its Caustic Soda plant further tumbled the availability of its Chlorine in the first half of the quarter ending December. Although the availability started levelling by late-November with resumption in the plant activities, however prices of Liquid Chlorine remained high due to high energy prices.
For the Quarter Ending September 2021
North America
An increment in the prices of Liquid Chlorine was observed in the 3rd quarter of 2021 across the North American region. In the US, 5 PVC plants clustered along the Mississippi River were shut ahead of Hurricane Ida's landfall. Plants that make up to 41% of North American PVC capacity slowly restarted after the occurrence but were hindered by the limited availability of critical industrial gases. At the end of the week starting Aug. 30, Shintech, the largest US PVC producer, also shut down its 1.45 million mt/year PVC unit in Freeport, Texas, due to lack of upstream VCM feedstock. Market experts revealed that they expected prices to spike in the aftermath of Ida's assault during this quarter.
Asia
The Asian market witnessed a steep rise in the prices of Liquid Chlorine during the third quarter of 2021. In India, bullish demand from downstream Poly Vinyl Chloride (PVC) and agrochemicals sector, positively affected the value of Liquid Chlorine across the country. The demand and supply fundamentals remained firm due to the appreciable production of Chlor-Alkali in the domestic market. Thus, in line with the increase in offtakes due to favourable demand, prices of Liquid Chlorine reached USD 108 per MT in India in the month of September. Ample availability of the inventory levels in Q3 helped to cater to the overall demand in the country.
Europe
The domestic market in Europe has been termed as tight by several market participants in Q3 of 2021. Some planned and unplanned turnarounds at various European production sites during Q2 and early Q3 resulted in supply shortages. Demand from the downstream sectors remained stable during the quarter with consistent volume intakes in the wake of economic recovery in major European countries including Germany. In August, the European Chlorine production reached 842 Kilo tonnes and the average daily production during the month was about 1.2% lower than July.
For the Quarter Ending June 2021
North America
Chlorine prices increased effectively due to critical shortage of the material heard across USA during this quarter. The impact of hurricane Laura observed in North America could be still felt as a major fire which disrupted production at Biolab Louisiana plant in 2020 remained disrupted during this quarter too. This plant holds the capacity of around 1.26 million Mt/year of Chlorine which is widely utilised for making chlor-alkali products, disinfectants and vinyl chloride monomers (VCM). The unprecedented fire created a prolonged shortage of Chlorine in the country, which translated into marked gains in the regional prices of disinfectant tablets used for swimming pools in the USA. The quarter also noted Biolab’s plan to establish another plant in USA for Chlorine, however, any official announcement is yet to come from the company.
Asia
The Asian market reported firm sentiments for Liquid Chlorine during this period, backed by firm offtakes from the downstream sectors like PVC and agrochemicals. In China, offtakes from the downstream PVC manufacturers remained abundant throughout the quarter, while the inventory levels were ample enough to satisfy the overall demand in the country. The agrochemical sector was also booming in the meantime, which also supported the overall Chlorine market of the country. While in India, Chlorine prices traced upward trajectory during this quarter backed by consistently high offtakes from the agrochemicals segment, while demand remained robust from the PVC segment. The price of Liquid Chlorine was assessed as USD 80/MT in India during the month of May.
Europe
The European Chlorine market witnessed firm demand from the downstream sectors during Q2 2021. The demand from the agrochemicals sector remained high throughout the quarter, due to seasonal demand from end users. While PVC manufacturers also increased their offtakes due to low and expensive shipments from the global market. In addition, the regional demand from disinfectant segment also remained modest to firm in the meantime. The overall market trend for Chlorine remained up in Europe during Q2 2021 buoyed by strong gains seen across the key producing countries.
For the Quarter Ending March 2021
North America
Key manufacturers of Chlorine stated that they had orderly price improvements for bulk Chlorine from downstream sectors during this quarter. Demand from downstream disinfectants segment rose successively month over month. However, freakish weather reduced the several plants output that reduced the demand for liquid Chlorine from industrial chemical segment like Pulp and Paper, PVC, Textiles etc. though the demand from Pharmaceutical segment remained consistently firm throughout the quarter. In addition, several major plants faced force majeure under unfavourable climate conditions, like Westlake, Olin and OxyChem all of them announced FM on their Chlorine plant across Gulf of USA. Firm demand and inadequate supply drove the prices to gain value during the quarter ending March.
Asia
The Asian market showed mixed sentiments for Liquid Chlorine from several downstream sectors, while the supply fluctuated in different segments affecting the prices. After lunar holidays in China, some downstream users claimed having shortage of Chlorine gas, and gained a significant number in its value in this segment. While in the Indian markets, sufficient availability due to ample by-product Caustic Soda production and lower demand pressured the value of Liquid Chlorine in the country. In the Indian and Chinese markets, prices of Liquid Chlorine reduced and reached USD 202.3/MT and USD 211/MT respectively during March.
Europe
The European market encountered a healthy demand from the domestic disinfectant sector during this quarter. Consumption of Chlorine in Europe showed increment on y-o-y basis, however the production also showed sufficient improvement to satisfy this demand. Imports from USA remained halted due to major plant turnarounds. In addition, curtailed production in major Middle Eastern plants also reduced the supply activity of the region. Overall. the regional Liquid chlorine prices showed marginal improvement compared to the last quarter.
For the Quarter Ending September 2020
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.
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.
