Chlorine Price Trend and Forecast

Regional Price Overview

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 Second Half of 2023

Asia

The Asian chlorine market in the third quarter varied in a narrow range, majorly affected by the sluggishness of the downstream industries and consistent decline in their procurement rates.

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The market, however, struck a balance in the supply and demand in the quarter's later months, which translated into the momentum of the market during the fourth quarter. Initially, the pricing trajectory of chlorine was favored by the fair domestic and overseas demand, but as soon as the trade challenges and economic downtrail started showing their effect, the market registered a downward trend in the chlorine price trend.

Europe

The performance of the chlorine price trend during both the third and fourth quarters of 2023 remained dull as the situation became so dire that the traders had to induce cuts in their production rates in order to stabilize the market activities. Further, the negative influence of the economic crisis and the ongoing Israel-Hamas conflict, along with the shrinkage in the German economy, imparted a dark shadow over the overall functioning of the chlorine market and eventually caused its price trend to move southwards.

North America

The chlorine market in the third quarter of 2023 showcased an unexpected appreciation in its price trend in North America. The hike in the cost of raw materials and freight charges led to the rise in production costs and, eventually, the price trend of chlorine. The traders also enjoyed the expansion of their profit margin as the consumers depicted confidence in the industry. The momentum was intensified in the last quarter of 2023. The uptick during the time was majorly attributed to the rise in the cost of energy production and the onset of the festive and holiday seasons.

Analyst Insight

According to Procurement Resource, the price trend of Chlorine is estimated to be driven by the incline in the sales figures of downstream industries.

Chlorine Price Trend for the First Half of 2023

Asia

In the first quarter of 2023, the price trend of chlorine showcased feeble movements as the demand from the downstream industries and the consumption rates of consumers remained low. In the second quarter, the market momentum of chlorine paced up, and with high demand from the downstream industries, the price trend of chlorine surged. However, the declining interest of overseas buyers in the product and the shadows of the recession proved to be a challenge for the price trend of chlorine in the second quarter of 2023.

Europe

In Europe, the first quarter of 2023 was affected by the depleting market activities and slow demand from the downstream industries. In addition to this, the rates of exports, especially from France to other European countries, fell, creating another problem of oversupply in the region. In the second quarter, the production rates caught up while the demand from the downstream disinfectant industries slid. This subdued demand eventually resulted in a rise in the level of inventories that caused the price trend of chlorine to dip in the European markets.

North America

In the first quarter, the market activities of chlorine slumped in the North American region, with low interest of buyers in this sector and ample availabilities of inventories in the region. The depreciation was much more prominent in the second quarter as compared to the first.

The price trend in this quarter suffered from the spike in energy costs and weak performance of disinfectants, detergents, adhesives, and other related sectors. In addition to this, the plunging condition of the US economy resulted in a phase of recession that affected the overall purchasing appetite of buyers, and thus, the price trend of chlorine slipped in the region.

Analyst Insight

According to Procurement Resource, the price trend of Chlorine is estimated to fall in the upcoming quarters as the market dynamics of downstream industries seem to be declining.

Chlorine Price Trend for the Second Half of 2022

Asia

The Chlorine Price Trend 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 trend 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.

Europe

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.

North America

The price trend 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.

Analyst Insight

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

Asia

In contrast to the global average, the price trend 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.

Europe

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.

North America

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

North America

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

Asia

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.

Europe

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.

North America

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

Asia

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.

Europe

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.

North America

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

Asia

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.

Europe

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.

North America

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.

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