Corrected: US chlorine operating rates boom on PVC demand

14 May 2007 23:27  [Source: ICIS news]

Correction: In the ICIS news story headlined “US chlorine operating rates boom on PVC demand” dated 19 April 2007, please read in the second paragraph … In May, the figure stood at 95% while in March … instead of … while in February …. A corrected story follows.

HOUSTON (ICIS news)--Stronger vinyls and polyvinyl chloride (PVC) demand pushed US March chlorine operating rates to their highest level since May, a producer said on Thursday.

Chlorine operating rates last month jumped to 94%, from 89% February, according to data from the Chlorine Institute. In May, the figure stood at 95% while in March last year it was at 89%.

US chlorine producers operated at higher capacity last month to recoup from several stoppages in February that left inventories tight, one source said.

Chlorine operating rates were expected to remain above 90% in April because of strong vinyls and PVC demand in the second quarter, one source said.

The US home construction sector, a major consumer of PVC, showed a small recovery in March, with housing starts rising by 0.8% to 1.5m from February, the Department of Commerce (DoC) said on Tuesday.

The DoC said that housing starts last month were still 23% below the March 2006 rate of 1.97m.

A producer said increased chlorine production was unlikely to provide relief to the caustic soda market because inventories will remain tight due to a seasonal jump in demand in the summer.

US caustic soda contract prices in April climbed by $40-50/dry short ton (dst) (€32-40/tonne) to $340-390/dst FOB (free on board), according to global chemical market intelligence service ICIS pricing.

The increase followed a $20-40/dst hike implemented in January.

US producers also increased chlorine contract prices by $25/short ton to $315-335/short ton in the second quarter as assessed by ICIS pricing.

Top US chlor-alkali producers include Dow Chemical, Occidental Chemical, Formosa, Olin, Pioneer and PPG Industries.

($1 = €0.74)

By: William Lemos
+1 713 525 2653

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