Argentine natgas shortage leads to cuts in chlor-alkalis

21 August 2010 00:03  [Source: ICIS news]

HOUSTON (ICIS news)--A shortage of natural gas in Argentina has led to cuts in chlor-alkali production, sources said on Friday.

The government prioritised natural gas for home-heating during cold spells, while industrial requirements were sidelined.

As a result, ethylene production from natural gas declined, together with production of downstream polyvinyl chloride (PVC).

Reduced PVC production in turn resulted in lessening demand for feedstock chlorine, which caused a decrease in availability of chlorine’s co-product, caustic soda.

The shortages, however, were tempered by gas and ethylene imports, according to sources.

In addition to ethylene supply issues, vessels carrying caustic soda from the US Gulf to Argentina were faced with delays on preliminary stops at Brazilian ports backlogged with ethanol exports.

A local caustic soda producer said customers were not running out of product because supply and deliveries were being carefully managed

Domestic caustic soda prices in Argentina were last assessed by ICIS at $360-410/dmt (dry metric tonne) (€281-320/dmt) ex-tank. However, local sources said prices were trending up.

($1 = €0.78)

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By: Ron Coifman
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