Navigating the Cycles of Chlor-Alkali Markets: Insights from Market Behavior and Forecasting Trends

Chlor-alkali plants produce caustic soda and chlorine in fixed proportions, 1.10:1.00, respectively, by weight. However, market demand is not fixed in this proportion. It can swing from a caustic soda shortage when the market demand ratio is >1.10:1.00, to a caustic soda surplus when the market demand ratio is <1.10:1.00. Such a market evolution usually causes a swing from high caustic soda prices to low caustic soda prices in parallel. Chlorine demand and prices go through an analogous market, and price changes are the inverse of those seen for caustic soda.