European chlorine production, caustic soda stocks slide in April

LONDON (ICIS)–European chlorine production, capacity utilisation and caustic soda stocks all fell significantly in April as demand for chlorine slumped in the wake of the coronavirus pandemic.

At 23,491 tonnes, average daily production in Europe in April 2020 was 7.5% lower than the  May figure, and 10.7% lower than the volume seen in April 2019.

Demand for polyvinyl chloride (PVC), a significant downstream product for chlorine, fell by 30-40% in April according to market sources.

As a result, chloralkali producers lowered production rates which reduced the availability of both chlorine and caustic soda.

Caustic soda demand has fallen less rapidly than demand for chlorine, and as a result the market has tightened throughout the second quarter with both spot and contract prices increasing.

European caustic soda stocks in April reached their lowest level since 2013, were 15% lower than the May figure and 114,835 tonnes below stocks in April 2019.

Chlorine production & capacity utilisation – EU 28 + Norway/Switzerland

Month	Production (tonnes)	Capacity Utilisation (%)
	2019	2020	% change	2019	2020
January	863,084	827,909	-4.1%	88.7%	84.1%
February	788,146	798,988	+1.4%	89.7%	86.8%
March	819,719	787,529	-3.9%	84.3%	80.0%
April	789,095	704,728	-10.7%	83.8%	74.0%

 Caustic soda stocks (tonnes)

Month	2019	2020
January	272,632	226,813
February	286,481	241,996
March	292,678	209,701
April	293,141	178,306

Caustic soda is used in the manufacture of pulp and paper products, alumina, soap, water treatment and textiles.

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