Chlorine and caustic soda markets rarely lie about the underlying state of demand. The reason is not just because they have been widely used for over 125 years. But the production process is also relatively flexible, and can be adjusted within minutes to align with supply/demand changes. So the picture in the chart above of falling chlorine production […]
Chemicals and the Economy
EU chloralkali output slows as markets weaken
Chloralkali production is an excellent indicator of market direction in the short-term. Unlike petrochemicals, cellrooms can quickly reduce or increase operating rates. This is essential for efficient operation, as the price for electricity can change every 30 minutes. Thus as the above chart of European chlorine production shows (based on Eurochlor data), demand seems to […]
EU faces US competition in PVC export markets
The blog continues this week’s special series on chloralkali and PVC markets by looking at EU developments on PVC. Historically the EU has had strong export positions into markets such as Turkey and Russia, which lack major local production. More recently, as in the USA, strong export demand for caustic soda and weak domestic demand […]
China’s downturn slows caustic soda markets
As promised yesterday, the blog is running a special series of posts this week focused on chloralkali and PVC markets. Caustic soda is a key indicator for the global economy. This is because it is used in a wide variety of basic industries, including mining, pulp and paper, detergents and water treatment. The USA is […]
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