Get the latest insights on price movement and trend analysis of Chlorine in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Chlorine Price Trend for the H2 of 2022
The Chlorine price trends witnessed an upward trajectory in the Chinese domestic market. With the revival of healthy market demand post the covid restrictions the prices inclined as the buffer inventories were not sufficient. The manufacturers were still dealing with the post covid supply issues constraints.
The increased demand coupled with the depreciation of the Chinese yuan added to the inflated prices of Chlorine. However, the trends turned bearish in the fourth quarter, eventually registering a decline. This decline was due to the falling downstream demand coupled with the cautious wait-and-see activity of the potential buyers.
The chlorine prices kept afloat in the European region despite many challenges. The increased electricity costs added to the already inflated production/operation costs due to supply constraints and difficult sourcing. The deserted market sentiments deterred the manufacturers from transferring the raised costs to the consumers fearing the phenomenon of demand destruction. The chlorine prices in Europe averaged around 370 USD/MT ( Spot FD Europe) in November ’22.
The price trends for chlorine exhibited mixed patterns in the said period. Initially, the prices inclined owing to the high operating costs and equally robust market demand. The downstream demand from the disinfectant and HCl-producing factories kept the prices inflated.
The announcement shutting of the Chlor-alkali plant by the chemical giant Olin further added to the prices and the buyers started rigorously buying and hoarding the product, further creating shortages in the market. The demand soon died out in the fourth quarter as glooming market volatility drastically impacted the downstream demand. The chlorine price averaged around 690 USD/MT ( FOB USA, liquid) (approx..) in December’22.
According to Procurement Resource, chlorine prices will likely remain under pressure in the coming months. The current market volatilities coupled with high-interest rates, contracting purchasing power and reduced offtakes will affect the prices altogether.
For the Second Quarter of 2022
In contrast to the global average, the price trends for chlorine remained consolidated in the Asian arena. Due to the substantial production and the low demands from the end-user industries dealing in disinfectants and PVC, the price remained stable altogether, lower than the global market.
With the covid-19 restrictions lifted, the factories started churning products at renewed capacities. However, due to the wait-and-see attitude from the buyers, the production remained limited. Amid the market shrouded with uncertainties; the price of chlorine remained weak.
In India, the demand for liquid chlorine dropped by 2%. However, due to the seasoned rise in the demand for building and construction activity, the prices will likely rise in the coming quarters, provided the energy costs and supply disruptions stabilize.
Amidst the continuing economic meltdown, the prices for commodities are soaring in Europe. With retaliatory tariffs against Russia, massive shortages are created in the market. Hence, the traders raised the offers on the existing product to widen their profit margins.
The US manufacturers are still unable to streamline their production of the chemical with the growing market sentiment. Hence, the market equilibrium was affected. Due to the supply and demand mismatch, the prices remained strong compared to the previous quarter.
The per ton price of chlorine in the US accelerated to USD 725 FOB US Gulf as per one of the traders. The Producer Price Index went from 464.660 in April to around 507.236 in June 2022, thereby encapsulating the inflation in the US.
For the First Quarter of 2022
In 2022, chlorine prices went up in the US amid supply shortages as factories were still recovering from the aftermath of the pandemic. In late 2020, a major chlorine manufacturing plant was destroyed by the hurricane Laura in Louisiana damaging 40% of the country’s chlorine tablet supply. The factory had since been undergoing repairs. It was supposed to reopen by mid-to-late 2022 but its dates are pushed amid construction material shortages. In New Jersey, yet another factory caught fire in January 2022, destroying 100,000 pounds of chlorine tablets.
For the Fourth Quarter of 2021
In October, there was a large increase in its demand due to an increase in demand for downstream PVC resin from the pipes and fitting industry for the replacement of ageing infrastructure. Because this chemical is created as a byproduct of caustic soda, excess caustic soda production in India during a period of low seasonal demand for PVC resulted in a significant decline in its price. In late October, Grasim Industry in India began the first phase of its caustic soda plant, exacerbating the misery of abundant chlorine supplies. In December, chlorine prices in India were estimated at 125 USD/MT due to a narrowing demand-supply mismatch.
Due to rising energy costs and climate issues, there was a relative decline in caustic soda operating rates in Europe, resulting in a shortage of the chemical. The supply of Vinnolit's chlorine was further impacted by a force majeure at its caustic soda facility in the first half of the fourth quarter. Despite the fact that availability began to level out by late November as plant activity resumed, the chemical’s costs remained high due to high energy prices.
As production at some caustic soda factories in the United States remained below the acceptable level, the availability of feedstock chlorine remained limited. However, after reaching an all-time high in October, prices finally fell in accordance with the gradual adjustment of manufacturing activity and seasonal dullness in PVC demand. Chlorine prices fell to 380 USD/MT FOB USGC in December, as supply outstripped demand.
For First, Second and Third Quarters of 2021
The Asian market for liquid chlorine displayed varied attitudes from numerous related industries, while supply varied in different segments, influencing pricing. In China, after the lunar holidays, a shortage of chlorine gas was reported, resulting in a considerable increase in its price. While in Indian markets, significant availability due to abundant by-product, caustic soda production, and reduced demand pushed up the price. Chlorine prices in the Indian and Chinese markets fell in March, reaching 202.3 USD/MT and 211 USD/MT, respectively.
During the month of May, the price in India was estimated to be USD 80/MT. The Asian market experienced robust demand for liquid chlorine, driven by strong offtakes from downstream industries such as PVC and agrochemicals. In China, offtakes from PVC producers were plentiful throughout the quarter, but stockpile levels were sufficient to meet the country's total demand. Meanwhile, the agrochemical business was thriving, which aided the country's overall chlorine market. In India, chlorine prices rose throughout the quarter, supported by persistently high offtakes from the agrochemicals industry, while demand from the PVC segment remained strong.
During the third quarter of 2021, the Asian market saw a significant increase in its price. The demand from the downstream PVC and agrochemicals sectors boosted the value of liquid chlorine in India. Because of the significant output of Chlor-Alkali in the domestic market, demand and supply fundamentals remained stable. As a result of the rise in offtakes due to favorable demand, chlorine prices in India reached 108 USD/MT in September.
During this quarter, a solid demand in the European market from the household disinfection industry was observed. The use of the chemical in Europe increased over the year, but production improved sufficiently to meet this need. The imports from the United States remained suspended. Also, lower output at large Middle Eastern facilities hindered the region's supply activity. Overall, regional liquid chlorine prices improved little compared to the previous quarter.
During the second quarter of 2021, the European chlorine market saw strong demand from downstream sectors. Affected by demand from consumers, demand from the agrochemicals industry remained high throughout the quarter. PVC producers boosted their offtakes as a result of low and costly supplies from the worldwide market. Furthermore, regional disinfectant demand stayed strong in the meantime. During the second quarter of 2021, its general market trend in Europe remained positive, boosted by robust growth in the primary producing nations.
During the third quarter, major producers of this chemical reported systematic price increases for bulk chlorine from related industries. However, unusual weather restricted the production of numerous facilities hence reducing demand for liquid chlorine from industrial chemical segments such as paper and pulp, PVC, textiles, and so on, while demand from the pharmaceutical segment remained constantly steady throughout the quarter.
Because of a major scarcity of the substance reported across the United States during this quarter, chlorine prices surged significantly. The impact of Hurricane Laura in North America affected production at Biolab's Louisiana factory in 2020 which continued to impede operations throughout the quarter.
Chlorine prices increased in the third quarter of 2021 in the North American area. In the United States, five PVC facilities along the Mississippi River were closed ahead of Hurricane Ida's impact. Plants accounting for up to 41% of North American PVC production gradually resumed but were hampered by a lack of crucial industrial gases.
For the Year 2020
The decreasing caustic demand kept output low, leading industrial grade liquid chlorine to stay fairly stable within 200-260 USD/MT CFR in Asian countries. As COVID-19 limitations were lifted in key Asian markets, a number of Chlor-Alkali manufacturers announced that operations had returned to normal in the third quarter.
A much-needed rebound in third-quarter performance, fueled by improvements in offtakes by numerous chlorine derivative manufacturers, prompted Chlor-Alkali producers to continue with their scheduled forward integration efforts in the Chlorine-Caustic supply chain. Indian Chlor-Alkali increased consumption in healthcare and hygiene, drinking water, and other industrial sectors.
Its consumption increased after a large drop in Q2 as demand from secondary PVC makers increased following a dramatic comeback in building activity later in Q3. With Chlor-Alkali operations stabilizing at rates over 80% as lockdowns eased, traders saw more robust buying for chlorine derivatives despite lingering concerns about a second coronavirus epidemic in many European nations. While forecasts for the chemical remained positive, market participants were seen seeking a middle ground to achieve a balance between PVC and caustic, since sales of caustic were still under pressure.
Chlor-Alkali production rates remained around average in the first part of the quarter, despite weakening demand for caustic soda lye. Restricted Chlor-Alkali rates and a limitation of chlorine feedstock for PVC manufacturing exacerbated the risk of a PVC export volume shortfall among some US firms. However, with an increase in requests for its derivatives like PVC (polyvinyl chloride), VCM (vinyl chloride monomer), and EDC (ethylene dichloride), demand began to rise.
Procurement Resource provides latest prices of Chlorine. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Chlorine appears as a greenish-yellow gas with a pungent odour. It is slightly miscible in water. It belongs to the halogen series of the periodic table and is the second-lightest of all the halogens. Sodium chloride, that is, common salt is the most common compound of chlorine and is in use since the ancient times. As an element, it is extremely reactive and acts as a strong oxidising agent. It is widely used as a disinfectant, even in drinking water supplies to kill bacteria.
|Industrial Uses||Water treatment, Oxidising agent, Chemical synthesis, Industrial processes, Paper products, Plastics, Paints and dyes, Textiles, Medicines, Disinfectant, Sanitation and antisepsis|
|Molecular Weight||70.9 g/mol|
|Synonyms||7782-50-5, Molecular chlorine, Dichlorine, Bertholite, Chlorine gasy|
|Supplier Database||Nouryon, Ercros S.A, Olin Corporation, Occidental Petroleum Corporation (OxyChem)|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-degree analyst support after report delivery|
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
While using the process of electrolysis, sodium chloride or common salt is dissolved in water to prepare brine (salt solution), which releases wet Chlorine gas after being electrolysed. Further, the obtained product is cooled down to 12-140C to obtain dry Chlorine.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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