Page 179 - CW E-Magazine (23-7-2024)

World Chlor-Alkali Conference 2024

(L to R) Ms. Malini Hariharan, Market Strategy Director, ICIS; Ms. Carol Li, Mr. Chris Barker and Ms. Hira Saeed
in the second quarter of 2022, largely investigations, she noted that the West ongoing anti-dumping investigations
driven by high energy costs and European PVC sector has been strug- on US PVC imports by India would be
decreased profi tability. The operating gling with low demand and high cost of keenly watched by the industry.
rates in 2024 have seen an improve- production, while exports are not com-
ment over that of 2023, but have not petitive. Speaking about the impact on chlor-
yet regained the levels of 2022 or prior, alkali operating rates, she noted that
refl ecting poor demand, weak economic “The US has two PVC capacity ex- the imposition of anti-dumping duties
conditions and the still-high energy costs. pansions due to come online in the next on PVC could lead to some increase in
few months, which would add around European production. However, the
Brazil, a market with growing 0.5-mt of PVC to the market. This high energy prices would mean that
importance in chlor-alkali, has seen is a huge amount of PVC given that there wouldn’t be a possibility for the
increased consumption by the pulp & demand in the US is still not very good. operating rates to recover in Europe in
paper industry. There is also good The US will likely have to export this the absence of recovery in demand.
demand from alumina and potential surplus,” she pointed out.
growth in the future from lithium, driven “There are no proposed antidump-
by the electric vehicles segment. US exports of PVC have come ing duties on US caustic soda so excess
under anti-dumping investigations in material could be exported. Europe is
Speaking about alumina production many regions across the globe includ- recovering from the economic down-
trends globally from 2016 to 2023, ing the UK, India and the EU. “The pro- turn and additional imports from the US
Ms. Saeed said the US has seen a gradual visional anti-dumping duties proposed could result in caustic soda oversupply.
decline. In Western Europe, there is by EU upwards of 58%, will have a An infl ux of caustic soda from the US,
a similar situation, with high energy prohibitive effect on exports from US in addition with higher chlor-alkali
costs in 2022 and 2023 accelerating the to Europe,” Ms. Saeed said. operating rates for PVC production
downward trend. However, in South without signifi cant demand recovery
America, production has doubled from Speaking about the key destinations would result in a long European market,”
2016 to 2022, while in China there has for US PVC exports in 2023, she noted Ms. Saeed informed.
been almost 25% increase between that while Europe accounted for over
2016 and 2023. 10% of total US exports of 2.73-mt, the Speaking about sustainability trends
three largest importers were Canada, in the industry, she said that many pro-
Speaking about PVC anti-dumping Mexico and India. She noted that the ducers are focusing on securing renew-

Chemical Weekly July 23, 2024 179

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