April chlorine production drops to two-year low

20 May 2008 18:54  [Source: ICIS news]

HOUSTON (ICIS news)--US chlor-alkali production in April fell to its lowest level in more than two years amid weak demand for chlorine, according to data released on Tuesday by the Chlorine Institute.

April chlorine production was 84% of capacity, down from 88% of capacity in March, the US trade group said.

April was also the lowest month for US chlorine production since December 2005, when rates dropped to 82% of capacity, the Institute said.

Output in the month for US chlor-alkali producers was 967,020 tons (1,065,704 tonnes) of chlorine and 1,001,460 tons of caustic soda.

Market sources said demand for chlorine-derived polyvinyl chloride (PVC) construction materials has been very weak amid the US housing crisis and a sharp drop-off in new construction activity.

Meanwhile, demand for caustic soda has remained strong, and prices have increased rapidly as US production declined.

Chlorine and caustic soda are produced simultaneously in the same manufacturing process, but chlorine demand has a greater influence on production rates because it is a corrosive, toxic gas that is dangerous to store.

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By: Greg Holt
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