The 12th Asian Chlor-alkali Conference June 18, 2008

A looming economic slowdown should be bad news for the chemical industry, but the chlor-alkali industry has so far remained remarkably unscathed.

The PVC market in the USA has softened due to the turndown in housing construction. But $100/bbl for oil means $1400/ton+ for ethylene and $1700/ton+ for polyethylenes, whereas PVC escalates to only $1100/ton (less if chlorine is cheap). As a result , PVC markets are holding up well in Asia, with enhanced competitiveness compared to other plastics. (So even high crude oil prices are good news for chlorine.)
Weakness in the West for PVC means falling chlor-alkali plant operating rates and reduced production of caustic soda, for which prices are therefore high and rising, providing much of the return on the ECU. In contrast in Asia, chlorine and caustic soda contribute more equally to the ECU, though tightness of caustic soda in the West certainly helps Asian pricing.
Much can happen in today’s turbulent markets. Come to find out the latest situation at the 12th Asian Chlor-alkali Conference in Bangkok in June.

Conference fees: £975/delegate

Official Website: http://www.icis.com/asianchloralkali