For the Quarter Ending December 2024
North America
In North America, Liquid Chlorine prices showed stability during the quarter, driven by a balanced supply and demand situation. Availability increased due to higher caustic soda production, a key co-product in the chlor-alkali process. The robust demand in the upstream chlor-alkali segment, reflected in rising caustic soda prices, bolstered the availability of Liquid Chlorine in the market.
Demand for Liquid Chlorine remained steady in key sectors like water treatment, plastics manufacturing, and industrial processes, preventing significant price fluctuations. Despite the increase in availability, prices remained unchanged, reflecting market stability. However, in November 2024, prices saw a decline of about 3%, influenced by fluctuating co-product caustic soda prices. This decline came amid mixed economic signals, including a modest 0.7% rise in the Producer Price Index (PPI) for final-demand goods.
Although the demand for Liquid Chlorine remained subdued, particularly from PVC manufacturing and water treatment, the market maintained stable supply levels. Despite a slight increase in the PPI for chemicals, declining industrial activity, and weaker demand led to the price reduction.
APAC
During the quarter, Liquid Chlorine prices in the APAC region remained stable, supported by a balanced supply-demand scenario. Increased production of caustic soda, a key co-product in the chlor-alkali process, significantly boosted the availability of Liquid Chlorine, helping maintain consistent supply levels.
This rise in caustic soda production was driven by solid demand within the chlor-alkali segment, as reflected in the upward trend of caustic soda prices. The stable demand for Liquid Chlorine from key end-user sectors, including water treatment, plastics manufacturing, and industrial processes, further contributed to market stability. Despite the higher availability, pricing remained unchanged due to the equilibrium between supply and demand. Manufacturing activity remained steady, with producers maintaining consistent output levels to meet market needs.
However, as the quarter progressed, demand from certain downstream industries showed signs of softening, particularly in sectors like PVC and alumina refining, which slightly pressured the market sentiment. Overall, while the market was stable throughout the quarter, the end of the period saw more cautious buying behavior, indicating a more subdued outlook in the near term.
Europe
In Europe, Liquid Chlorine prices remained relatively stable during the quarter, supported by a balanced supply and demand situation. Availability of Liquid Chlorine saw an increase due to higher caustic soda production, which is a key co-product in the chlor-alkali process.
The strong demand within the upstream chlor-alkali segment, reflected in rising caustic soda prices, further bolstered the availability of Liquid Chlorine in the market. Demand for Liquid Chlorine in critical sectors, such as water treatment, plastics manufacturing, and industrial processes, remained steady, ensuring that there were no significant fluctuations in prices. Despite the increased availability of Liquid Chlorine, prices stayed unchanged throughout the quarter, reflecting overall market stability.
However, in mid quarter of 2024, prices experienced a decline, primarily driven by fluctuations in co-product caustic soda prices. While demand for Liquid Chlorine remained subdued, especially in PVC manufacturing and water treatment, supply levels were stable. The weaker industrial activity, and reduced demand contributed to the price reduction.
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.
