The Market Overview of Chlorine and its Increasing Demand
In the following blog, there is detailed information on the definition, price analysis, production process, applications, and leading players.
Chlorine is a highly reactive element and is denoted by Cl. It belongs to the periodic table's halogen series. It is the second-lightest halogen and has a very strong pungent odour.
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It is yellow-greenish in colour and is toxic, and corrosive in nature. The melting point and boiling point of chlorine are -101.5°C and -34.04°C respectively. The atomic number of chlorine is 17 and its atomic mass is 35.453u. The electronic configuration of chlorine is [Ne] 3s²3p5.
Chlorine Price Trend
In recent months, the price of chlorine on the US market remained low. Moreover, there was a reduction in downstream demand for the hydrochloric acid production cost, which decreased industrial output. The declining consumer confidence and growing market uncertainty have an impact on the dynamics of chlorine pricing.
The escalating inflation slowed down commerce, which affected the buying attitudes of market participants in the downstream business, particularly those that produce hydrochloric acid. Moreover, Covestro, located in Texas (USA), experienced a force majeure from December 23, 2022, to December 31, 2022, due to reasons like waning market activity and poor offtakes.
Recently, there was a bearish trend in the chlorine market. The fluctuating downstream demand in the Chinese market for hydrochloric acid manufacturing has an impact on commodity pricing. Nonetheless, the present easing of COVID-19 limitations has led to an increase in downstream demand. Yet, due to a significant supply of cargo, the pricing trend for chlorine in the Asia Pacific region is moving downwardfacing a dip. Restrictions on downstream textile and apparel demand, along with falling coal costs, resulted in lower prices for the good.
Due to excess supplies, weak price support from the downstream hydrochloric acid and water treatment industries, and surplus supplies overall, chlorine prices currently showed a gloomy market sentiment. Because of production cuts in the region's downstream industries and higher energy prices as a result of Europe's energy problems, the fundamentals of demand have deteriorated, which has affected the price trajectory of chlorine.
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The industry leaders have made offtakes at lower margins as a result of the declining downstream market and fragile financial situation, which has recently resulted in increased inflation and uncertain energy prices. This has decreased the market's competitiveness.
Chlorine Production Process
Chlorine Production from Electrolysis of Salt
Wet chlorine gas is released from one of the terminals as a result of the electrolysis of sodium chloride in brine. It is cooled to between 12 and 14 degrees Celsius in order to produce dry chlorine.
Chlorine Production from the Chlor-Alkali Process
The NaCl salt, which is often obtained with several magnesium and calcium sulphate impurities that are removed by soda ash and barium chloride, is employed in this procedure. The mercury cell used for electrolysis cools the heated chlorine generated during the process to 12–14 degrees Celsius
Various Applications Driving the Chlorine Market
- Chlorine is used to create household bleach, which is used to clean surfaces in the kitchen and bathroom as well as to whiten and disinfect clothing.
- By keeping crops free of pest infestation and eliminating bacteria like E. coli and salmonella that can contaminate food, chlorine is used to provide safe and ample food.
- The chemical is utilised in the creation of medications, such as those that reduce cholesterol, manage arthritic pain, and ease allergy symptoms. Moreover, it is present in items like blood bags, surgical stitches, and medical instruments. It is also utilised in the production of respiratory inhalers, contact lenses, and safety glasses.
- As chlorine chemistry helps to purify the silicon in sand grains, which is used to make solar panel chips, chlorine chemistry is essential for capturing solar energy. Moreover, wind turbine blades that convert wind energy into electricity are constructed using epoxy resins with chlorine content.
- It is utilised to create quick processors that power computers, tablets, and smartphones. In addition, it contributes to the production of high-performance magnets, hybrid car batteries, and refrigerants for home and commercial air conditioning systems.
- The energy efficiency of house heating and cooling systems is increased when plastic foam insulation is created using chlorine, which lowers costs and preserves natural resources.
Key Suppliers in the Chlorine Market
- Ercros S.A
- Olin Corporation
- Occidental Petroleum Corporation (OxyChem)
Senior Content Writer at Procurement Resource
Prakhar Panchbhaiya is an accomplished content writer and market research analyst. With over 4 years of experience in content creation and market analysis encompassing many industries, including pharmaceuticals, nutraceuticals, biochemistry, healthcare, ed-tech, and Food & Agriculture, he has been creating quality content for multiple sectors. He is a Biochemistry major with sturdy backing in a PG diploma in digital marketing, helping in the exhaustive content creation based on extensive research and competitive marketing.