European September chlorine production plummets 9.5%

14 October 2010 17:04  [Source: ICIS news]

LONDON (ICIS)--European chlorine production plunged 9.5% from August to September, according to figures released by official industry body Euro Chlor on Thursday.

This left total September production at 764,795 tonnes, with the average daily output at 25,493 tonnes; 1.1% lower compared with the 25,768 tonnes recorded in the same month last year.  

Meanwhile, the average chlor-alkali capacity utilisation dropped by 7.7% month-on-month, leaving September operating rates at 73.0%; the lowest on record for 2010 so far, according to the report.

In September, caustic soda stocks totalled 224,528 tonnes, 8.7% less than last month, and 16,113 tonnes lower than figures in September 2009, when stocks stood at 240,641 tonnes.

The fall in European chlor alkali output was widely attributed to three ongoing force majeures and a number of production constraints, which had tipped both the caustic soda and polyvinyl chloride (PVC - the main use for chlorine) markets into a shorter supply, sources said.

Indeed, many producers were optimistic that this tighter availability would support them in their bid to raise prices in both markets, particularly given the ongoing French general strike, which had paralyzed industry in much of the region. 

“The [PVC] market is unbelievably short – I get so many calls from customers asking for material,” said one large PVC producer.

“In the last few days it's tightened significantly and our price ideas are becoming firmer and firmer as the month goes on,” it added. 

Month	Production (tonnes)			Capacity Utilisation (%)
	2009	2010	% change	2009	2010
January	665,891	808,563	+21.4%	60.4%	74.7%
February	740,603	786,984	+6.3%	74.4%	80.5%
March	738,872	845,597	+14.4%	67.0%	78.2%
April	670,349	834,652	+24.5%	62.8%	79.7%
May	764,103	872,472	+14.2%	69.3%	80.6%
June	761,270	843,513	+10.8%	71.3%	80.6%
July	826,136	854,731	+3.5%	74.9%	79.0%
August	771,139	873,015	+13.2%	69.9%	80.7%
September	773,029	764,795	-1.1%	72.4%	73.0%

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By: Stephanie Wilson
+44 20 8652 3214

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