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Consulting Resources has been one of
the world's foremost sources of chlor-alkali information for nearly
three decades. To quickly find out how our chlor-alkali
consulting experience can be
applied to your needs, click here,
or to find out more about our Chlor-Alkali Summit,
click here. A study conducted by
Consulting Resources Corporation on the outlook for three key chlor-alkali
chemicals indicates a relatively stable market ahead for chlorine,
caustic soda, and soda ash. U.S. production of chlorine, caustic soda and
soda ash will grow by about one percent per year, on average, in the
coming decade.
The global chlor-alkali industry has generally been facing maturing
demand, a problem made even more challenging by any weakness in the
economy. What makes the chlor-alkalis more complex than many other
parts of the chemical industry is the unique co-product
relationship between chlorine and caustic soda (also known as
sodium hydroxide). Chlorine demand is generally more sensitive to
fluctuations in the economy than is co-product caustic soda. For
this reason there is a perpetual imbalance between supply and demand
for these two important chemicals.
Some of the most significant end products for chlorine, such as
polyvinyl chloride (PVC) and ethylene dichloride (EDC), tend
to see weak demand whenever there is economic weakness. As a result,
chlorine prices come under additional pressure from falling PVC and EDC
prices, impacting the margins of chlor-alkali producers.
Longer-term, the outlook for the chlor-alkali industry is somewhat
predictable. As in the past, the industry will follow the lead of
the economy as a whole. As the economy strengthens, chlor-alkali
demand and pricing will also change favorably.
For more information regarding how we can help satisfy your
consulting needs in this and other industries covered by
Consulting Resources, please contact us
with your questions.
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