Contrasting trends in key chlor-alkali markets: Olin becomes the new leader in US while rough patch runs for Europe market - What's in store?

Two distinct scenarios anticipated for US and Europe caustic soda markets. Dow exits its number one position in chlor alkali market while Olin stands in its place by purchasing Dow's assets. As the US market becomes more cost competitive in nature, the Europe market will enter a critical stage in coming 2-3 years because of the ongoing regulations and legislations. This article covers the present and future scenarios in both US and Europe regional markets and the possible ways forward for the European buyers to safeguard their supply.   Introduction Chlorine management has been plaguing North Western Europe market for almost 7-8 years. Demand for chlorine has been substantially decreasing over the years making the caustic soda market tighter with increasing demand (refer to the right pane for chlorine caustic relation and ECU definition). In contrary to this, caustic soda market in US is expected to witness increased production in coming years due to the market approaching a cost competitive nature. This article talks about the various scenarios in the regions and the possible way forward for European buyers.   Author: Y.�Nishanth Reddy