For the Quarter Ending September 2024
North America
In Q3 2024, the North American Liquid Chlorine market witnessed a significant decrease in prices, with the USA experiencing the most notable changes. Various factors influenced the market dynamics, including disruptions like plant shutdowns due to hurricanes and power failures.
These disruptions impacted supply chains, leading to temporary closures and affecting the overall availability of Liquid Chlorine. The quarter saw a -12% decrease from the previous quarter, indicating a challenging pricing environment. Additionally, the price comparison between the first and second half of the quarter revealed a -3% decline, reflecting a consistent downward trend.
The USA market specifically faced multiple plant shutdowns, exacerbating supply constraints and contributing to the negative price trajectory. Despite seasonality and disruptions, the quarter-ending price for Liquid Chlorine (Contract) DEL Texas in the USA settled at USD 685/MT, marking a culmination of the decreasing pricing sentiment observed throughout the quarter. The correlation between disruptions, supply chain challenges, and pricing trends underscored the overall bearish outlook for Liquid Chlorine in North America during Q3 2024.
Asia
In Q3 2024, the APAC region witnessed a significant decline in Liquid Chlorine prices, influenced by a multitude of factors. The market experienced a negative trend due to oversupply and weakened demand across various sectors. Challenges such as reduced industrial output, sluggish economic growth, and supply chain disruptions contributed to the downward pressure on prices. Geopolitical tensions, extreme weather events, and logistical issues further exacerbated the pricing decline. China, in particular, saw the most pronounced price changes, with a substantial -14% decrease from the previous quarter. The second half of the quarter recorded a notable -9% drop compared to the first half. This sharp decline reflects the challenging market conditions and the impact of global economic uncertainties on chemical pricing dynamics. The quarter-ending price of USD 31/MT for Liquid Chlorine in China highlights the prevailing negative sentiment in the market, indicating a bearish outlook for the chemical sector. Disruptions and plant shutdowns like [insert names here] also added to the pricing challenges faced during the quarter, underscoring the overall unfavorable pricing environment in the APAC region.
Europe
As per the data, Liquid Chlorine prices kept on fluctuating in a narrow range in the European market during the third quarter of 2024. The key factor behind these fluctuations were uncertainties hovering around the economy due to ongoing war in the west Asia coupled with prolonged dullness in economic momentum of not Europe but also USA. Europe’s freight market in Q3 2024 was marked by rising costs, container shortages, and logistical challenges. Major carriers like MSC and CMA CGM raised FAK rates to as high as $6,500 per container due to space constraints and operational surcharges. Red Sea disruptions and port congestion in Singapore further delayed shipments. Air freight rates from Northeast Asia to Europe surged due to e-commerce growth and semiconductor demand, with spot rates up 40% year-on-year. Despite increased capacity, imbalances between outbound and return loads persist, complicating logistics. As geopolitical tensions and seasonal demand rise, freight markets are expected to remain volatile into Q4 2024. On the economic perspective, Europe’s economic landscape in Q3 2024 was marked by stagnation and challenges, with Germany, the largest economy in the eurozone, grappling with a prolonged industrial recession. The Bundesbank reported weak industrial output, high energy costs, and declining export demand. Germany’s economy showed little to no growth and might contract again this quarter, negatively impacting the broader eurozone.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Liquid Chlorine market experienced price stability driven by several key factors. One pivotal reason was the lower output of chlor-alkali chemicals, exacerbated by supply chain disruptions, notably the force majeure incidents at HF Chlor-Alkali LLC and Westlake Chemical Corporation in Kentucky due to power outages. Additionally, heightened logistical challenges, particularly in shipping routes from Asia, contributed to supply tightness, placing upward pressure on prices since April 2024.
Focusing on the USA, the country observed substantial price hikes, reflecting a bullish market sentiment. The USA saw a continuous increase in Liquid Chlorine prices throughout Q2, primarily influenced by seasonally high demand coupled with fluctuating performance in downstream industries, such as construction, which exhibited a mixed trend. Furthermore, the market was impacted by external economic factors like high interest rates and reduced consumer spending, adding complexity to the demand-supply dynamics.
The consistent price escalation, despite moderate demand fluctuations, underscored the prevailing supply constraints and the overall firmness in market sentiment. By the end of Q2 2024, Liquid Chlorine prices in the USA reached USD 760/MT (Contract) DEL Texas, reflecting the ongoing challenges and tight supply conditions that characterized this period, resulting in a largely positive pricing environment.
APAC
In Q2 2024, the Liquid Chlorine market in the APAC Region experienced a phase of price surge, driven by consistent demand from downstream industries, including PVC and construction, alongside steady production rates. Notably, intermittent supply disruptions due to temporary plant shutdowns, such as those announced by Tata Chemicals Ltd for production optimization, played a role in maintaining price levels. The fluctuations in global freight rates and regional logistical challenges led to the availability of Liquid Chlorine remaining insufficient to meet market needs. Focusing on China, the country witnessed the maximum price changes during this quarter. The Chinese market reflected overall stability, shaped by a blend of seasonality and strategic production adjustments. The onset of scheduled maintenance by key producers meant that while there was a temporary strain on supply, it did not significantly disrupt the market due to pre-existing stockpiles. This period saw China’s trend towards cautious procurement, aligning with a slower recovery in downstream sectors such as PVC, which had a direct impact on maintaining price equilibrium. Conclusively, the latest quarter-ending price for Liquid Chlorine in China stood at USD 36/MT, reflecting a surge in the pricing environment. Overall, the pricing environment for Liquid Chlorine in Q2 2024 has been marked by stability, underpinned by balanced supply-demand conditions and strategic production management, indicating a neutral to positive market sentiment.
Europe
In Q2 2024, European Liquid Chlorine prices rose due to supply chain challenges, including logistics disruptions and rerouted paths resulting from the Red Sea turmoil. The industry faced decreased production rates and supply interruptions, leading to significant reductions in the availability in Germany. Fluctuations in global upstream Natural Gas prices over the first half of Q2 have increased operational costs, further pressuring prices. Contributing factors include tighter physical markets, prolonged production cuts, and escalating geopolitical tensions. Inflation across German states also impacted short-term pricing, while Germany’s push for tighter global energy cooperation positively influenced prices. Consequently, market players raised prices to sustain margins in the European market. European Liquid Chlorine Suppliers faced challenges, resulting in reduced stock availability. Additionally, port operations were disrupted as the Verdi trade union initiated a warning strike affecting major ports, including Hamburg, Bremen, Bremerhaven, Brake, and Emden, starting in June 2024. Workers at HHLA and Eurogate terminals in Hamburg ceased operations amid stalled wage negotiations for a new collective labor agreement, causing significant port activity disruptions as reported by German media. As the high season approaches, market players are closely monitoring demand trends. However, minimal inventory procurement sentiments in the Eurozone could hinder significant margin recovery efforts, complicating price hikes to offset upstream cost pressures.
For the Quarter Ending March 2024
North America
The first quarter of 2024 came out to be a dynamic period for the Liquid Chlorine market in North America, characterized by fluctuating prices driven by several factors. First and foremost, demand dynamics played a pivotal role in influencing market prices. While some downstream industries maintained a steady demand for Liquid Chlorine, the onset of summer ushered in a shift in demand patterns. Typically, the summer season triggers heightened demand for various chemicals, including Liquid Chlorine, possibly due to increased usage in water treatment and sanitation processes. This seasonal variation in demand exerted additional pressure on prices during the quarter.
Moreover, supply conditions remained relatively stable throughout the period. However, concerns arose regarding production levels, primarily attributable to production cuts implemented by Chlor Alkali manufacturers. The repercussions of the winter storm, which initially disrupted supply chains, gradually subsided, enabling supplies to recover over time.
The United States emerged as a focal point for significant price fluctuations within the region. The market witnessed notable price increases throughout the quarter. In summary, the pricing environment for Liquid Chlorine in North America during the first quarter of 2024 was characterized by an upward trend, influenced by seasonal demand variations, stable yet cautious supply conditions, and specific market dynamics within the USA. The quarter-ending price for Liquid Chlorine in the USA stood at USD 765/MT.
APAC
The pricing dynamics surrounding Liquid Chlorine in the APAC region during the first quarter of 2024 have presented a varied outlook. The pricing trajectory exhibited fluctuations, with the initial and final months witnessing a decline, while the middle phase experienced an upward trend. Overall, demand for Liquid Chlorine across the region has been moderate. The construction material segement, a significant consumer of Liquid Chlorine, experienced a slowdown during the winter season, contributing to reduced demand. However, this decline was mitigated by steady product supplies. China notably experienced significant price fluctuations for Liquid Chlorine during this quarter. Domestic market demand remained subdued, primarily due to the construction industry's slowdown, exerting downward pressure on prices. Furthermore, plant shutdowns for maintenance further impacted supply levels. A noticeable correlation exists between seasonal demand shifts and corresponding price changes for Liquid Chlorine. As the winter season progressed, demand tapered off, leading to a slight dip in prices. However, these fluctuations had a relatively minor impact, and overall prices-maintained stability. In summary, the pricing environment for Liquid Chlorine in the APAC region during Q1 2024 reflects mixed sentiments. While prices experienced a 2% decline compared to the previous quarter.
Europe
The first quarter of 2024 was characterized by dynamic shifts in the European Liquid Chlorine market. Price fluctuations stemmed from various factors, with demand dynamics playing a central role. While certain downstream industries maintained steady demand for Liquid Chlorine, the transition into spring triggered shifts in demand patterns. This seasonal adjustment typically leads to heightened demand for various chemicals, including Liquid Chlorine, particularly in water treatment, thereby exerting upward pressure on prices. Supply conditions remained relatively stable throughout the quarter, despite concerns over production levels due to production cuts by the manufacturers. The aftermath of the winter storm, which initially disrupted supply chains, gradually eased, facilitating a gradual recovery in supplies over the period. Germany, as a significant player in the European market, witnessed notable price fluctuations mirroring broader regional trends. In summary, the pricing landscape for Liquid Chlorine in Europe during the first quarter of 2024 depicted an upward trajectory, with prices for Liquid Chlorine in Germany rising by 5% compared to the previous quarter.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 expresses the skyrocketing trend of liquid chlorine price primarily driven by the tight supply from the source and rising demand from the downstream industries including pool and packed distilled water companies. The price of liquid chlorine in the USA increased by 11% in October compared to the previous month, and further increased by 13.5% in November. This upward price trend was driven by high energy prices, high production cost, inflationary pressure in midst of the labour shortage and the optimistic market sentiment brought about by the festive holiday season. In terms of year-on-year comparison, the price of liquid chlorine in the USA during the fourth quarter of 2023 increased by 37% compared to the same quarter in the previous year. Additionally, there was a 23% price increase when comparing the first and second halves of the quarter. Key point is the persistently high input cost including high labour cost amidst of shortage of labour in the USA and the economic inflation in the USA domestic market.
Adding to the complexity, Mississippi river megadrought of the October 2023 also created high impact on the overall commodity cost by addition of extra shipment charge driven by the reduction on cargo shipment weight forced traders to accelerate the price. To conclude, the latest price of liquid chlorine in the USA for the current quarter is USD 595/MT (Contract) DEL Texas.
APAC
The APAC region's Liquid Chlorine market during Q4 2023 witnessed mixed performance, with various factors impacting the market and prices. First, the market experienced stable supplies, supported by consistent production activities. Second, demand remained low, both domestically and internationally, which put downward pressure on prices. Third, the Chinese market played a significant role in the region, with its struggling economy affecting the overall market sentiment. China's economy has been struggling for months, despite government policies aimed at boosting optimism. While some sectors have received assistance, it has not been enough to sustain a long-term rebound. Prices have fluctuated based on availability and international demand. The latest price for Liquid Chlorine (Pipeline) Contract EXW-Xinjiang in China at the end of Q4 2023 is USD 33/MT. Whereas Indian market noticed a slight price surge in the October 2023 amidst of the festival season owing to lavish expense sentiments of the populate resulting in progressive in price. However, in November Indian market reflected the slight depreciation in the liquid chlorine price post festivities and low demand from the downstream industries which noticeably remained same till the end of end of the quarter. Conclusively, quarter end price of Liquid Chlorine was USD 123.73/MT (Retail) Ex-Mumbai (India).
EUROPE
European market witnessed downward trend for the liquid chlorine price in Fourth quarter of the year 2023. As per the data, overall chemical production in Europe decreased with 1.1% in the November month combinedly affecting the liquid chlorine production in Europe. According to European chlor-alkali industry association Euro Chlor, Production of chlorine has remained down since the mid of the 2023, But comparatively risen market has been seen compared to the corresponding period in the previous year. It has been also reported that some chlorine plants were shut down in Europe in the third quarter of the year due to low marginal cost, working as a reason in this market unbalance condition.
Adding to the complexity, Downstream industry performance also remain dull throughout this timeframe, But High demand is expected from downstream FMCG soap and detergent industries will be a key driver in the price surge in the liquid chlorine, decline of price of liquid chlorine also affected by price breakdown of hydrochloric acid due to low demand from construction industry. As per the analysis, prediction is to ascend the construction industry right after the monsoon, PVC (polyvinyl chloride) pipes demand will rise used in the construction industry will contribute in the cost add on in liquid chlorine.
For the Quarter Ending September 2023
North America
The Liquid Chlorine costs in the North American region witnessed an upward price trend in the quarter ending September 2023, owing to the consistent offtakes of Caustic Soda in the downstream Alumina textile industry. Due to high freight charges and disturbances occurring on the base of the Mississippi River, producers faced pressure to increase the production of Caustic Soda, while demand for Liquid Chlorine remained low from the domestic downstream sectors. Therefore, Liquid Chlorine costs also increased parallelly. The offers from the regional market also gained a positive demand outlook throughout the quarter of Chlor Alkali, and market participants enjoyed sustaining good margins in the USA. Additionally, the upstream energy price trajectory also rose in the H2 of Q3, elevating input cost pressure. Further, the consumption from the downstream HCl segment also remained moderate to low in the meantime, affecting the price trend of Liquid Chlorine in the North American market. However, PPI (Total Manufacturing Industries) rose from 245.480 (July) to 252.608 (September), data released by FRED shows, impacting the overall recovery.
Asia
The Chlor Alkali prices fluctuated in the narrow range across the Asian region following consolidation in the market, while Liquid Chlorine showcased consistent dullness in demand throughout the quarter. The Caustic Soda production in China has recently gained a balanced market situation along with a surge in the downstream Aluminium demand in the first week of September 2023, affecting the supplies of Liquid Chlorine in the country. Meanwhile, the supply side supported the Caustic Soda market, as the adequate stock availability squeezed the demand-supply gap. Consequently, supplies of Liquid Chlorine declined in the market and affected the costs of the product. Furthermore, demand for the product from the downstream HCl segment remained moderate to low in the meantime, as the country's subdued economic situation affected the downstream consumption of the product. Additionally, as per the National Bureau of Statistics of China, in August, the Purchasing Manager Index (PMI) of China's manufacturing industry was 49.7%, an increase of 0.4% in August 2023, and the prosperity level of the manufacturing industry continued to improve in the H2 of the quarter for Chor Alkali industry.
Europe
European Liquid Chlorine market remained dull during this quarter where due to low demand from the downstream industries, producers had to opt for production cuts for Caustic Soda production. Some Dutch Chlorine manufacturers either reduced their operating rates or shut down their plants due to low or negative margins. Several manufacturers heard the same in Germany too during this quarter. Allegedly, high operating rates generated this problem of oversupply situation in the regional market, while the downstream industries' performance remained underwhelming throughout the timeframe. A key manufacturer, Covestro, came out as one of the exceptions, as they decided not to shut down their plant in Spain, keeping the current market condition in mind. Downstream industries' performance also remained dull throughout this timeframe, where the demand for PVC sustained an overall dullness in the meantime, as the region's economic situation kept worsening due to piling up borrowing by governments, high inflation, and sensitive microeconomics.
For the Quarter Ending June 2023
North America
The market situation for liquid chlorine witnessed a bearish trend throughout the second quarter of 2023, with prices exhibiting a depreciation of approximately 14% in North America. Supply was abundant in the region as production in chlor-alkali industries, such as sodium hydroxide and potassium hydroxide, of which chlorine is obtained as by-product increased due to subsidization of energy costs along with falling crude oil prices. However, the demand for chlorine in the downstream disinfection and detergent industry, PVC, and adhesives and agrochemicals was not strong, due insufficient rebound of the US economy. The increment in the interest rates by almost 5%, by the Federal Reserve also had a detrimental impact on the end user consumers as the worries of the US economy entering recession diminished purchasing activities in the region. The declining demand for polyvinyl chloride also contributed to the depreciation of the prices of liquid chlorine. Export orders from overseas were also not adequate, which compelled distributors and traders to sell stocks at discounted prices in order to mitigate large volumes of underutilized inventories. The prices of liquid chlorine at the termination of the second quarter of 2023 were assessed to be USD 445/MT (DEL Texas).
APAC
The situation for liquid chlorine in the Asian market remained marginally bearish throughout the second quarter of 2023. Prices were recorded to exhibit a marginal depreciation of 3% at the end of the second quarter of 2023. Overall, demand and supply remained in the region remained the same as the Asian as the economy started gaining momentum in the beginning of May 2023, which led to optimum production activities in the chlor-alkali industry and a reviving demand from the downstream PVC, detergent and disinfectant industry. But the demand for chlorine in the international market was low, which was the primary factor for the marginal depreciation of prices. Supply and demand both remained moderate as traders did not revise new quotation of prices due to looming economic recession and a modest demand from downstream industries of cleaning, detergent and paper production largely resisted in change of prices, leading to an overall largely stable market. The prices of liquid chlorine were evaluated to be USD 33/MT (Pipeline) Ex-Xinjiang at the termination of the second quarter of 2023.
Europe
The European market trend for chlorine witnessed an overall bearish situation due to ample production of caustic soda in the region and slow demand from downstream pharmaceutical and disinfectant sectors. The downstream demand from the PVC industry was also recorded to be at an all-time low because of minimal purchasing activities in the construction industry. The decline of prices of liquid chlorine was further affected by the declining prices of hydrochloric acid due to low demand from the construction industry. Much of the inventory was accumulated by-product from the chlor-alkali production sector, which was operating at optimal levels, due to the subsidization of energy costs which eased production costs for caustic alkali. The optimal production rates of alkali industry eventually led to an oversupplied market for chlorine, for which the demand was almost nonexistent. Export orders from overseas were sluggish due to insufficient economic rebound of Europe as the overall CPI fell by 3 points in June 2023, which cast a negative sentiment in the purchasing activities of end user consumers. The final price of Liquid chlorine towards the end of the second quarter of 2023 was assessed to be USD 180/MT Spot FD Antwerp.
For the Quarter Ending March 2023
North America
In Q1 2023, the Liquid Chlorine market ended up on a bearish note with low purchasing activities when compared with the previous quarter. In the USA, Liquid Chlorine prices remain on the lower side in the face of bearish regional demand and sufficient supplies. Sales of Liquid Chlorine from the locale and Mexico and Canada remain extremely slow in the wake of a gradual increase in product inventories. Most suppliers have ample existing stocks and limited trading dynamics for fresh stock, resulting in bearish cost support. The increase in supply, weaker demand, and limited requirement from the downstream ventures has dampened any opportunity for producers to increase prices in March.
Asia Pacific
With the feeble trading fundamentals and high product inventories, the regional Liquid Chlorine market slumped with weak cost support. Downstream industries saw a downward momentum following a disruption in supply/demand fundamentals. The demand for Liquid Chlorine from the downstream disinfectant industries and cleaning products remains depressed, with bearish consumption from the end users. In the Asian market, Liquid Chlorine consumption decreased, resulting in weak market fundamentals. Sufficient stock and high inventories among the significant Liquid Chlorine makers impacted the trading exercises in the domestic market. The product market additionally experienced frail market opinions and declining spot-cost conversations. In China, the price of Liquid Chlorine in China slumped to USD 41/ton Contract EXW Xinjiang.
Europe
Deterred Liquid Chlorine prices supported was supported by ample supply and weakening demand in the European region. Deteriorating trading activities and sluggish consumer demand resulted in a feeble price trend. Exports from France to other European regions decreased due to oversupplies and weak market sentiments. Downstream disinfectant industries are heard to operate stably with limited product utilization in the regional market. Notwithstanding, in the European market, the costs displayed a negative pattern with weak spot discussions, and traders were purchasing limited volumes at lower costs. Liquid Chlorine supply remained adequate as many crackers had reduced their operating rates to avoid stockpiles.
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.
