CMAI Completes 2008 World Chlor-Alkali Analysis
Beverly Tabbs
January 15, 2008
Chemical Market Associates, Inc.(CMAI)announces the completion of the 2008 World Chlor-Alkali Analysis. This analysis examines and provides an outlook for supply and demand dynamics, trade patterns, pricing relationships, profitability, production costs and technology for the period 2002-2012 for the global chlor-alkali industry. Additionally, access to CMAI's online Capacity and Supply/Demand databases gives clients the necessary tools for their strategic business
decisions. Some key issues examined in the analysis are:
China continues to add new capacity
The principal supply issue is a result of the tremendous increase in Chinese chlor-alkali capacity. Since the surge of Chinese capacity began in 2005, China has added approximately 85 percent of the world's new chlor-alkali capacity. This addition rate will slow down after 2008 as China will have achieved its goal of PVC/chlor-alkali self-sufficiency. China will continue to increase its caustic soda exports.
Trade Patterns
Northeast Asia will continue to grow its dominance as the world's largest net exporter of caustic soda (aqueous and anhydrous). North America's net caustic export position will be influenced by the amount of caustic the U.S. exports to Canada and Mexico. The Middle East will grow its net caustic position only after chlor-alkali/vinyl producers can secure enough ethylene.
Demand in North America
Chlor-Alkali capacity is built to support chlorine demand and/or where there is a low cost production advantage. In the past, new capacity in North America satisfied both criteria, because of the $2.00 per MM Btu natural gas environment and the corresponding advantages of ethane based ethylene units compared to naphtha-based crackers. New capacity will continue to be added in North America, but it will be to satisfy regional chlorine demand growth. No longer will capacity be installed to actively grow market share in the international EDC and caustic markets.
CMAI's 2008 World Chlor-Alkali Analysis is available in book and CD-ROM format. Online Capacity and Supply/Demand databases create a full spectrum of knowledge pertinent to these markets.
CMAI is a petrochemical, plastics, fibers and chlor-alkali consulting firm that services a wide range of companies all over the world. Since 1979, CMAI's goal has been to provide accurate, timely consulting services for the worldwide industries that it covers. CMAI maintains offices in Houston, New York, London, Dubai, Dusseldorf, Singapore and Shanghai. Clients to CMAI services include chemical and oil companies, engineering &
construction companies, banking and financial institutions, plastic converters, grocers/retailers, government agencies and trading companies.
For more information on the 2008 World Chlor-Alkali Analysis visit CMAI's website at http://www.cmaiglobal.com
decisions. Some key issues examined in the analysis are:
China continues to add new capacity
The principal supply issue is a result of the tremendous increase in Chinese chlor-alkali capacity. Since the surge of Chinese capacity began in 2005, China has added approximately 85 percent of the world's new chlor-alkali capacity. This addition rate will slow down after 2008 as China will have achieved its goal of PVC/chlor-alkali self-sufficiency. China will continue to increase its caustic soda exports.
Trade Patterns
Northeast Asia will continue to grow its dominance as the world's largest net exporter of caustic soda (aqueous and anhydrous). North America's net caustic export position will be influenced by the amount of caustic the U.S. exports to Canada and Mexico. The Middle East will grow its net caustic position only after chlor-alkali/vinyl producers can secure enough ethylene.
Demand in North America
Chlor-Alkali capacity is built to support chlorine demand and/or where there is a low cost production advantage. In the past, new capacity in North America satisfied both criteria, because of the $2.00 per MM Btu natural gas environment and the corresponding advantages of ethane based ethylene units compared to naphtha-based crackers. New capacity will continue to be added in North America, but it will be to satisfy regional chlorine demand growth. No longer will capacity be installed to actively grow market share in the international EDC and caustic markets.
CMAI's 2008 World Chlor-Alkali Analysis is available in book and CD-ROM format. Online Capacity and Supply/Demand databases create a full spectrum of knowledge pertinent to these markets.
CMAI is a petrochemical, plastics, fibers and chlor-alkali consulting firm that services a wide range of companies all over the world. Since 1979, CMAI's goal has been to provide accurate, timely consulting services for the worldwide industries that it covers. CMAI maintains offices in Houston, New York, London, Dubai, Dusseldorf, Singapore and Shanghai. Clients to CMAI services include chemical and oil companies, engineering &
construction companies, banking and financial institutions, plastic converters, grocers/retailers, government agencies and trading companies.
For more information on the 2008 World Chlor-Alkali Analysis visit CMAI's website at http://www.cmaiglobal.com
Print
Email
