Consulting Resources Corporation
Quality Service Since 1981
Consulting Resources has been one of the world's foremost sources of chlor-alkali information for well over two 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 recently conducted by Consulting Resources Corporation on the outlook for key chlor-alkali chemicals indicates relatively stable market ahead for chlorine, caustic soda, and soda ash. U.S. production of chlorine will grow at a rate averaging about 1.4 percent per year, U.S. production of caustic soda will grow by about 1.5 percent per year, and U.S. production of soda ash will grow by about 1.3 percent per year, reaching a combined total of 42.3 million tons by 2009, and 45 million tons by 2014, from a base level of 39.1 million tons in 2004.
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. By 2009, U.S. chlorine production will likely reach 14.3 million
tons, up by about eight percent from its 2004 production level of 13.2 million
tons. Caustic soda and soda ash will also experience production increases,
reaching levels of 15.2 and 12.8 million tons, respectively, in 2009. Average
annual growth rates ranging from 1.3 percent for soda ash, to 1.5 percent for
caustic soda, will carry U.S. production levels for the three chemicals to
levels that are nearly six million tons per year higher than today's levels by
2014.
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.
U.S. CHLOR-ALKALI PRODUCTION FORECAST
(millions of tons)
|
Base Year |
|
'04-'14 Growth |
||||||
|
Key Sectors |
2004 | 2009 | 2014 | (ppa) | ||||
| Chlorine | 13.2 | 14.3 | 15.2 | 1.4 | ||||
| Caustic Soda | 14.0 | 15.2 | 16.2 | 1.5 | ||||
|
Soda Ash |
11.9 | 12.8 | 13.6 | 1.3 | ||||
|
TOTAL |
39.1 |
42.3 |
45.0 |
1.4 | ||||
| Source: Consulting Resources Corporation | ||||||||