What is chlor-alkali cycle-By Charles Fryer
Chairman, Tecnon Orbichem)
-Mr. Fryer noted that the typical
industry cycle for the chlor-alkali sector
involves oscillating demand-supply
movements for chlorine and caustic
soda.
Chairman, Tecnon Orbichem)
-Mr. Fryer noted that the typical
industry cycle for the chlor-alkali sector
involves oscillating demand-supply
movements for chlorine and caustic
soda.
At the beginning of a recovery
from recession, chlorine tends to
bounce back well before caustic soda.
The construction industry being a
favoured early component of any
economic recovery, PVC tends to see
strong demand during the early phase
of an economic recovery,
from recession, chlorine tends to
bounce back well before caustic soda.
The construction industry being a
favoured early component of any
economic recovery, PVC tends to see
strong demand during the early phase
of an economic recovery,
thus boosting chlorine demand.
-As the recovery progresses, prices of caustic soda – which
go into a wide range of industries – tend
to strengthen, even as PVC demand
tapers down, pushing chlorine prices
down.
-As the recovery progresses, prices of caustic soda – which
go into a wide range of industries – tend
to strengthen, even as PVC demand
tapers down, pushing chlorine prices
down.
In the last part of the cycle
entering a downturn, chlorine prices
reach its lowest point, and caustic soda
prices come off their highs and return
to the low point where they were about
4-5 years earlier at the bottom of the
last recession.
entering a downturn, chlorine prices
reach its lowest point, and caustic soda
prices come off their highs and return
to the low point where they were about
4-5 years earlier at the bottom of the
last recession.
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