US Sept chlor-alkali production down on soft vinyl demand

19 October 2009 21:48  [Source: ICIS news]

HOUSTON (ICIS news)--US chlor-alkali production was 80% of capacity in September, down slightly from the 85% August rate, a US trade group said on Monday.

The production dip was caused by a planned maintenance at one supplier’s plant and soft demand from the vinyl sector, a source said.

US chlor-alkali output in September was 876,330 tons (795,007 tonnes) for chlorine and 936,390 tons for caustic soda, the Chlorine Institute said.  

Chlorine production is the typical driver for building a chlor-alkali plant, with caustic soda considered a co-product and polyvinyl chloride (PVC) the primary chlorine derivative, a major producer said.

PVC market participants recently hoped that high feedstock chlorine prices would edge back down in the fourth-quarter, since overall chlor-alkali production is anticipated to track toward traditional capacity utilisation rates of 90% and upward, sources said.

Third-quarter chlorine contract prices ranged $390-410/st (short ton and $354-372/tonne or €237-249/tonne), almost double the first quarter 2009 price, according to global chemical market intelligence service ICIS pricing.

In other chlor-alkali products, caustic soda spot export prices were in the $135-155/dmt (dry metric ton) range, while pipe-grade PVC contracts were unchanged from September at 63-65 cents/lb, according to ICIS pricing.

US chlor-alkali producers include Dow Chemical, Occidental Chemical, Formosa Plastics, Shintech, Georgia Gulf, Bayer, Olin and PPG Industries.

US PVC producers include most of the chlor-alkali producers.

($1 = €0.67)

For more on caustic soda and chlorine visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect


By: Judith Taylor
+1 713 525 2653



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index