Chlor-alkali
Overview
The dynamic between chlorine and caustic soda and their varied end-uses creates a very dynamic market for chlor-alkali products, meaning that the markets do not grow equally.
Tracking this market requires a high level of understanding of the dynamics and the experience to interpret the market to provide an accurate price assessment.
Argus’ chlor-alkali experts will help you decide what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest chlor-alkali news
Browse the latest market moving news on the global chlor-alkali industry.
Baltimore bridge collapse could slow US caustic transit
Baltimore bridge collapse could slow US caustic transit
Houston, 27 March (Argus) — The collapse of Baltimore's Francis Scott Key Bridge could slow movement of caustic soda in the northeastern US at a time when tank supplies in the region were already tight. Caustic soda distributors have tanks in Baltimore where material can be sourced from both domestic and European producers by truck, rail or ship. In the past US producers have moved caustic soda by ship up the east coast to meet demand in the region, particularly when European producers have had fewer cargoes available. Any threat to supply flow through Baltimore by ship is lessened by the presence of other tanks in the region, including nearby Philadelphia, that can be supplied by overland methods. But even modest complications to logistics for a couple of weeks could put pressure on pricing in the area. The Port of Baltimore closure comes as European chlor-alkali rates have risen to meet greater chlorine demand on the continent, producing more by-product caustic soda as a result that could be sold to the US east coast. Distributors and caustic soda buyers in the northeastern US have warned that inventory levels in the tanks at various sites were getting severely tight during the first quarter before seeing some slight improvement in recent weeks. This dynamic allowed for price increases from distributors to be implemented in the northeast more consistently in the first quarter compared to other parts of the country, where supply and logistics were better. Argus assessed Northeast US prices in March flat between $1,060-1,110/dst ex-tank after prices had risen $25/dst over the previous two months. US caustic soda producers have announced price increases for April and second quarter contracts between $35-75/dst. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India launches anti-dumping probe into s-PVC imports
India launches anti-dumping probe into s-PVC imports
Singapore, 27 March (Argus) — India has launched an anti-dumping investigation into suspension polyvinyl chloride (s-PVC) imports originating from China, Indonesia, Japan, South Korea, Taiwan, Thailand and the US during October 2022 to September 2023. Three out of five Indian s-PVC producers have filed an application to investigate potential dumping of s-PVC imports into India. The Ministry of Commerce and Industry (MCI) issued a notice on 26 March announcing the launch of the investigation. The investigation primarily revolves around PVC grades manufactured from a suspension polymerisation process, which are typically considered general-purpose grades across global markets. The investigation does not include cross-linked PVC, chlorinated PVC, mass PVC or paste PVC. MCI has already announced an anti-dumping investigation into paste PVC imports in October 2023. Applicants have also requested for a retrospective imposition of potential anti-dumping duties, saying that there is a clear history of s-PVC import dumping from the above mentioned origins since the expiration of previous anti-dumping duties on s-PVC imports in February 2022. Upcoming capacities and import barriers India has around 1.6mn t/yr of domestic PVC production capacity as of 2023, according to Argus data. India also imported 3.2mn t of PVC from various origins last year, with the largest growth in supplies from China, northeast Asia and North America. This was mainly attributable to rising PVC demand in India following continuing government incentives to boost construction and agricultural activity in the country, with both industries heavily reliant on supply of PVC pipes. Furthermore, the Indian market is readying itself for the addition of new chlor-vinyl production capacities in coming years, with an aim to bring total nameplate PVC capacity in India to 3.8mn t/yr as of 2028. Indian authorities have already announced several measures targeted at controlling the flow of PVC imports into India as a result. Fresh anti-dumping investigations have started after India's ministry of chemicals and fertilizers announced BIS quality restrictions on PVC and PP imports in February. A delay in some Indian PVC capacity start-ups remains plausible, but new production in the country will likely limit incremental PVC imports in the coming years, or at least prevent them reaching record-high levels as in 2023. By Michael Vitiello India PVC imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Baltimore bridge collapse forces freight changes
Baltimore bridge collapse forces freight changes
Washington, 26 March (Argus) — Vessel traffic in and out of the Port of Baltimore, Maryland, has been suspended indefinitely in the wake of a container ship collision early today that brought down the Francis Scott Key Bridge, an accident that will force the rerouting of coal, car and light truck shipments. The prolonged closure of one of the largest ports on the US east coast could have a ripple effect on trade flows across much of the US, as shippers grapple for alternatives in the absence of a certain reopening timeline. Search and rescue efforts are still ongoing in the Patapsco River, after the 116,851dwt Dali headed to Colombo, Sri Lanka, slammed into a bridge support. The crew had lost control of the vessel. The Dali is owned by Grace Ocean and managed by Synergy Marine Group. The Maryland Port Administration said it does not know how long it will take for the shipping channel to be cleared and for traffic to resume. Shipping companies are bracing for a closure of at least two weeks, but many expect the clean-up effort could take significantly longer. President Joe Biden vowed the federal government will provide whatever resources are needed to get the port "up and running again as soon as possible." The port is a major trade hub for steam and coking coal, automobiles and scrap metal. Many market sources are still trying to determine whether the disruption will be dramatic enough to move prices. But coal markets were already being affected today. Baltimore is home to two key coal export terminals: eastern US railroad CSX's Curtis Bay Coal Piers and coal producer Consol Energy's Consol Marine Terminal. The facilities are upstream of the bridge, meaning ships will not be able to serve them until the route reopens. The terminals handle thermal and coking coal from Northern and Central Appalachia. They have a combined export capacity of 34mn short tons (30.8mn metric tonnes). The two terminals loaded 2.4mn t of coal in February, up from 2.1mn t a year earlier, according to analytics firm Kpler, mostly exports to India and China. An India-based trader said that the suspension of coal exports will probably raise prices in India, as brick kilns enter the peak production season in the summer. Buyers could look to petroleum coke as a substitute, but the higher sulphur content may not be appealing to some users despite the higher calorific value. Prices for deliveries to northern Europe are also likely to rise given that the Netherlands, Germany and Belgium combined are the second-largest market for North Appalachian coal. April API 2 futures rose by $2/t to $113.30/t. The incident has added a "level of volatility [which] could have big implications," a European paper broker said. The lack of information has prompted some coal producers to hold off on activating force majeure clauses in their contracts. Curtis Bay is served only by CSX, while CSX and fellow eastern carrier Norfolk Southern serve Consol. CSX said it is in contact with existing coal customers and contingency plans are being implemented. The railroad at this point intends to keep Curtis Bay open but will continue to assess the circumstances moving forward. Norfolk Southern did not respond to questions. Some scheduled Baltimore coal exports may be redirected to the other three eastern US coal export terminals in Hampton Roads, Virginia, but such reroutings likely will entail increased costs. Not all coal mines will be able to shift terminals. Such decisions will depend on available capacity in Hampton Roads. Exports from the three terminals in January reached a five-year high , signaling somewhat limited capacity. Mine location and railroad access may also determine whether coal can be rerouted, an industry source said. But some producers do not have much of a choice about trying to send coal to Hampton Roads. They may need the cash so will be forced into a decision. The producers most vulnerable to delays may be Consol and Arch Resources. Arch's Leer coking coal mine may be in the best position because it co-owns Dominion Terminal Associates in Hampton Roads with Alpha Metallurgical Coal Resources. The sudden lack of export capacity could put a floor under US coal prices, which have mostly been falling since last year amid low domestic demand. The competition to replace Baltimore coal exports could prevent further cuts, another coal trading source said. Metals sources say the accident will have only isolated effects on the global ferrous scrap market, but many market participants are still assessing the situation. The port is the 10th largest ferrous scrap export port in the US, and over the last five years an average of 44,000 metric tonnes/month of ferrous scrap was exported from Baltimore, according to US Department of Commerce data. But the port closure is likely to affect other freight. Baltimore is the nation's top handler of automobile traffic. Motor vehicles and parts accounted for about 42pc of all Baltimore port imports and 27pc of all exports, according to state data. The Port of Baltimore handled 847,158 cars and light trucks in 2023. "It's too early to say what impact this incident will have on the auto business — but there will certainly be a disruption," said John Bozzella, chief executive of industry trade group Alliance for Automotive Innovation. Dry bulk freight rates likely unaffected Several sources told Argus Baltimore's closure is unlikely to have a major impact on dry freight rates despite short-term interruptions to coal transports. "We are in the shoulder months with less demand for thermal coal," a shipbroker said, suggesting mild global temperatures means the collapse "may not have too much of an impact" on freight markets overall. Vessel traffic in ports such as Charleston, South Carolina, and Savannah, Georgia, may increase on diversions from Baltimore. Kpler identified 17 vessels that will likely be impacted because they are either in the Port of Baltimore or were expected to load there in the coming days. By Abby Caplan, Gabriel Squitieri, Luis Gronda, Evan Millard and Brad MacAulay Port of Baltimore coal terminals Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US bans asbestos imports for chlor-alkali
US bans asbestos imports for chlor-alkali
Houston, 18 March (Argus) — The US Environmental Protection Agency (EPA) has finalized a rule prohibiting uses of chrysotile asbestos, including an immediate ban on the import of asbestos for producing chlor-alkali. The ban, announced on Monday, is the first rule finalized under 2016 amendments to the Toxic Substance Control Act (TSCA). Chrysotile asbestos was the only form of asbestos still allowed to be used and imported into the US. Asbestos diaphragms are used to make chlorine and sodium hydroxide, also known as caustic soda. The chemicals, known collectively as chlor-alkali, are used to disinfect drinking and waste water, and to make polyvinyl chloride (PVC). Two-thirds of US produced chlorine is made without using asbestos and there are eight chlor-alkali plants in the US that use asbestos diaphragms in production, according to the EPA. Six of these eight plants are required to transition to either non-asbestos diaphragms or membrane technology within five years, with the remaining two to follow. The EPA aims to ensure the transition will not disrupt the supply of chlorine needed for water purification. Companies with multiple facilities have five years to convert their first facility, eight to convert the second and 12 years to change technologies at their third. The ruling also bans most sheet gaskets that contain asbestos as well as uses in oilfield and automotive brake blocks and linings. By Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Explore our chlor-alkali products
