Page 178 - CW E-Magazine (23-7-2024)

World Chlor-Alkali Conference 2024

SUBDUED TRENDS

Chlor-alkali industry faces headwinds as EU, Chinese

economy falter and US remains indifferent; India among

few bright spots

he global chlor-alkali industry In his comments on the overall the largest market for caustic soda
has remained fairly subdued global economy trends, Mr. Brian Tan, followed by USA and Europe.
Tthrough a challenging period Senior Regional Economist, Barclays
of past two years when the world wit- Bank PLC, pointed out that while over- He underlined the regional dispa-
nessed geopolitical tensions in Ukraine all US consumer spending has been rity in growth with regions with weaker
and Israel, leading to high energy prices holding up well, economic activity in cost position (like Europe and Latin
and consequent economic slowdowns China is losing steam. “After a fairly America) set to witness cheap imports
in different regions. strong fi rst quarter, a slowdown is being from Asia and Middle East. “Asia will
witnessed in China. Home sales have continue to add capacity keeping up the
Industry experts who gathered at the not bottomed out yet and it is highly oversupply situation for next couple of
27th edition of ‘ICIS & Tecnon Orbi- unlikely that the Chinese economy will years,” he said.
Chem World Chlor-Alkali Conference’ function as well as in the past,” he said.
in Singapore recently, sought to decode According to Ms. Saeed, US caustic
the implications of these diverse trends Global trends soda production is forecast to grow from
on the future prospects of the sector. In her overview of the global chlor- around 13-mt in 2024 to over 14-mt
The general consensus was that China, alkali market, Ms. Hira Saeed, Senior in 2029, while demand is expected to
one of the key global markets, would Consultant, Tecnon OrbiChem Ltd., grow from 10-mt to just over 11-mt
struggle to revive economic activities now part of ResourceWise, expected during the same period. “US is expec-
in the short term, while Europe would the growth of caustic soda industry and ted to remain a net exporter into 2029
try to tide over its uncompetitive posi- GDP growth to be on similar lines till and beyond,” she said. In the US, the
tion through protectionism and US will 2029. chemical sector comprising organic
intensify efforts to fi nd markets outside and inorganic chemicals accounts for
its shores as supplies rise and domestic Mr. Ankur Singh Vice President & a large percentage of overall consump-
demand remains sluggish. India would Head Strategy – Chemical Business, tion of caustic soda.
remain a bright spot with demand con- DCM Shriram Ltd., estimated the
tinuing to remain strong even as capa- global chlor-alkali installed capacity In Europe, monthly chlor-alkali
city additions begin to take shape. at around 106-mtpa with China being operating rates started to see a decline

Caustic soda Global capacity (Mn MTPA) Region wise capacity distribution: 2024
104 India 6.3%
103.5 Japan 5.8%
103 NE Asia 10.7%
102.5
102 China 46.8%
101.5
Europe 13.5%
101
100.5
US 16.7%
100
2023 2024 2025 China US Europe NE Asia Japan India
Source: ICIS

178 Chemical Weekly July 23, 2024

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