Europe August chlorine output falls 6.9% from July - Euro Chlor

17 September 2009 17:55  [Source: ICIS news]

LONDON (ICIS news)--European chlorine production in August fell 6.9% from July’s year highs, according to figures released by industry body group Euro Chlor on Thursday.

August chlorine output reached 768,963 tonnes, which was 16.1% lower than August 2008 levels, when production stood at 916,087 tonnes.

Average daily output in August fell 6.9% month on month to 24,805 tonnes and was 16.2% lower year on year, when the average daily make stood at 29,551 tonnes.

August caustic soda stocks were 278,587 tonnes, down 46,447 tonnes from the previous year, while monthly inventories fell 16.2% from July levels, which were pegged at 332,600 tonnes.

The average capacity utilisation across Euro Chlor reporting members was estimated to have decreased from July to August, down from 74.9% to 69.7%.

The news did not come as a surprise to many players in the European chlor-alkali market, who said the lower output was due to numerous outages, both planned and unforeseen, and lower summer operating rates.  

Several caustic soda and downstream polyvinyl chloride (PVC) buyers said that the fall in supply of both chlorine and caustic soda was the reason behind the increases seen in both markets throughout August and September.  

One producer noted that it was rare for prices of both products to rise at the same time given the relationship between chlorine and its co-product caustic soda (produced in the ratio of 1 tonne chlorine:1 tonne caustic soda).

This year’s figures were boosted by the introduction of two new companies to the group, which increased the reported capacity by around 2.15% in 2009, Euro Chlor said.

Chlorine production & capacity utilisation - EU 25 + Norway/Switzerland

Month	Production (tonnes)			Capacity Utilisation (%)
	2008	2009	% change	2008	2009 (estimate)
January	920,472	665,891	-27.7%	86.5%	60.4%
February	854,617	740,603	-13.3%	85.9%	74.4%
March	916,402	738,872	-19.4%	86.1%	67.0%
April	874,507	670,349	-23.3%	84.9%	62.8%
May	911,541	764,102	-16.2%	85.7%	69.3%
June	852,078	761,213	-10.7%	82.8%	71.3%
July	909,597	825,731	-9.2%	85.5%	74.9%
August	916,087	768,963	-16.1%	86.1%	69.7%

Caustic soda stocks (tonnes)

	2008	2009
January	274,625	242,588
February	249,762	293,675
March	277,515	352,685
April	260,049	349,259
May	257,559	341,344
June	247,738	304,845
July	264,509	332,600
August	325,034	278,587

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By: Stephanie Wilson
+44 20 8652 3214

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