World chlor-alkali industry profit peak has passed

According to the US "Chemical Weekly" report, analysts predict that the world's chlor-alkali industry's profit peak has passed and it is expected that prices will further decline in the next few years. As the market takes time to digest a series of new production capacity, the recovery of the world chlor-alkali industry may be after 2010.

Some experts said that in the period to come, with the slowdown in market demand and the elimination of old equipment, the total chlor alkali production capacity in Europe, the United States, Japan and other developed countries and regions will decline, but the degree of concentration will further increase. According to Eddie Kok, a CMAI company headquartered in Houston, the chlor-alkali industry in the North American market has been fully consolidated and restructured in the past five years. Many small-scale producers have already withdrawn from the market, and large manufacturers have become stronger and bigger, with a balance between supply and demand.

According to Mary Ellen Brady, a consultant at Harriman Chemsult, the East and West coasts of the United States have been relying more on imported caustic soda products in recent years because the price of U.S. domestic products is still higher this year. If the European and Asian vinyl chloride markets are not fully recovered, it may be that the US market will rely on imports more seriously.

Because the market is mature and the chlorine market is stable, it is expected that the electrochemical devices in Western Europe will maintain a stable trend in the next five years, and European production capacity will also remain stable. The profitability of electrochemical devices in Northeast Asia will start to increase, having reached the lowest level in 2005. However, since the new production capacity in the region is too concentrated, the real increase in profitability may have to wait until after 2009. At present, the United States in April the price of caustic soda contract 360 ~ 365 US dollars / ton, the spot price of 320 to 340 US dollars / ton; Europe in April caustic soda contract price of 320 to 350 euros / ton, the spot price of 280 to 300 US dollars / ton; Asian caustic soda 250 spot price ~ 270 US dollars / ton. In addition, the US contract price of chlorine in the first quarter was 310-335 US dollars / ton, the spot price of 300-310 US dollars / ton.

According to statistics, in 2006, the world's total chlor-alkali production capacity was approximately 61.5 million tons/year, caustic soda production approximately 54.8 million tons, chlorine production approximately 49.8 million tons, and chlorine and caustic soda sales revenue approximately 16.8 billion. The concentration of chlor-alkali production in the world is relatively high. At present, there are more than 500 chlor-alkali enterprises, of which nearly half are in Asia, but the scale is generally small. In addition to Asia, the world's chlor-alkali production is mainly concentrated in a number of large multinational companies, of which 11 large chlor-alkali enterprises accounted for 37.4% of the world's total capacity. The caustic soda production capacity of 5 companies including Dow Chemical, Western Chemicals and PPG Industry accounted for 79% of the total US production capacity. The caustic soda production capacity of 10 companies such as Solvay, Ineos Chlorine and Bayer accounted for 77% of the total production capacity in Western Europe.

Deflector sheave

Shanghai Mengtenali Drive Equipment Co.,Ltd , http://www.monadrive.com

Posted on