Chlor Alkali Market Surges with High Profit Margins as Vinyl Production Soars
According to a newly published report by Fact.MR, the global chlor-alkali market is projected to grow at a CAGR of 5.4% and was pegged at a valuation of more than US$ 84 Bn in 2018. The proliferation of building and construction has boosted the overall consumption of chlor-alkali across all end-use applications.
EDC / PVC applications account for a significant share in the chlor-alkali market. In 2018, the trade value of vinyl chloride polymers and other olephins was $20.48 billion. Growing trade of PVC is anticipated to create opportunities in the chlor-alkali market.
The use of chlor-alkali derivatives, such as polyvinyl chloride plastics in advanced infrastructure solutions, further improves the chlor-alkali market's revenue margins.
Rising aluminum production, and growing paper and pulp industries in China, India, Indonesia, and Malaysia are expected to drive growth in the Asia-Pacific Chlor-alkali markets. In addition, low energy costs for Shale gas in North America will fuel capacity expansion.
New and modern facilities will drive higher utilization and increase profitability through 2027. Manufacturing technology has strategically shifted from the diaphragm and mercury cell system to the membrane cell process globally, owing to increasing mercury pollution levels. This will give the industry a major boost over the forecast period.
Demand for Caustic Soda in Asia Pacific Surges
Caustic soda acts as an active compound of alkali and reacts readily with various substances, including zinc and aluminum. This is a significant factor that is likely to boost the demand for chlor alkali products in metallurgical applications.
Chlor-alkali is also used for water neutralization owing to its low pH value. The need for integration of water treatment plants owing to environmental restrictions by governments around the world will escalate the demand for chlor-alkali.
Presently countries in Asia Pacific such as China and India account for a major chunk of caustic soda exports thus boosting the market in these regions.
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Energy-Intensive Operations Adversely Affect Market Growth
Factors such as the energy-intensive production processes and strict environmental standards are expected to hamper the global chlor-alkali market growth. The Chlor-alkali market's main limitation is the legislation implemented by governments arising from ecological concerns.
In regions such as the Americas and Europe, where the government focuses primarily on environmental issues, vendors face strict government regulations. Leading market players like DowDupont have set an example by turning asbestos-based diaphragm manufacturing into non-asbestos operations in order to align production facilities with local laws. Average operating rate in North America will rise to 90% by the short term forecast.
Capacity Expansions to Drive Asset Utilization and Increase Profitability
Manufacturers are investing heavily toward expansion of their production facilities to meet the increasing demand for chlor-alkali derived products across the globe. The global chlor-alkali market, characteristically, is moving towards consolidation.
Prominent players are enhancing their distribution network by acquiring regional and local players. Companies are focusing on increasing their business footprints through continuous capacity expansions and acquisitions. These expansions are expected to surge the demand for chlor-alkali across the globe. For instance,
- In Oct 2019, Borregaard invested 207 million Norwegian krone in a chlor-alkali plant at Sarpsborg site in Norway; The project aims at modernizing existing equipment and is expected to near completion in 2021
- In July 2019, Global EPC and turnkey management company Nuberg EPC has been selected by SCE Chemicals, Morocco as the EPC lump sum contractor to establish a new Chlor-Alkali plant. The plant will produce caustic soda, hydrochloric acid and sodium hypochlorite chlorine.
- In Feb 2019, Aditya Birla Group firm, Grasim Industries, has inked a pact to acquire the chlor-alkali business of KPR Industries.
- In April 2018- Kemira announced an investment of USD 58.5 Million to expand the manufacturing capacity of chlor-alkali at its Finland based plant
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Global Chlor-alkali Market – Scope of the Report
The following report provides forecast and analysis of the global chlor-alkali market along with the historical data of 2013, estimated data 2019 and forecast data up to 2027 in terms of revenue (US$ Mn) and volume (Tons), according to a Fact.MR study. The research propounds critical trends that are currently influencing growth within the global chlor-alkali market along with several macro-economic indicators. This newly published and insightful report on chlor-alkali sheds light on key dynamics, and their impact on the overall value chain from suppliers to end-users, which are expected to transform the future of the global chlor-alkali market.
The report also comprises the study of current issues with end users and opportunities for chlor-alkali. It also contains value chain analysis, including the key market participants. To provide users of this report with a comprehensive view of the market, we have included a detailed competitive analysis about the key players involved in the market and strategic overviews. The dashboard included in the report provides a detailed comparison of chlor-alkali manufacturers on parameters such as total revenue, product offerings, and key strategies. A list of key companies operating in the chlor-alkali market provided in the report adds to the credibility of this exhaustive research study.
Global Chlor-alkali Market: In-Depth Assessment on Key Segments
The global chlor-alkali market is segmented on the basis of product, application, and region.
Country-specific assessment on demand for chlor-alkali has been provided for each regional market, along with the market size valuation and forecast price point assessment, price index and impact analysis of key regional and country-wise dynamics, which were obtained through quotes from numerous chlor-alkali manufacturers, experts, and suppliers. Y-o-Y growth projections have also been offered on all regional markets incorporated in the report. Moreover, future trends, growth prospects, and other possibilities related to the market have been answered in the report.
The report provides company-level market share analysis, which has been derived on the basis of the company’s annual sales and segmental revenue in all the target end-use industries. The market has been forecasted based on constant currency rates. The report provides detailed competitive and company profiles of key participants operating in the global market. Some of the major competitors operating in the chlor-alkali market are Dow Chemicals, Solvay SA, AkzoNobel SA and others.
Global Chlor-alkali Market: Research Methodology
A number of primary and secondary sources were consulted during the course of the study. Secondary sources include Factiva, Morningstar and Hoovers, and company annual reports and publications. Comprehensive interviews have been conducted by our analysts, and the intelligence and insights obtained have been used for validating the information gained through secondary research. The report also includes a description of assumptions and acronyms utilized for research purposes. Data gathered has been validated using the triangulation method to offer useful quantitative and qualitative insights into the chlor-alkali market.
Qualitative aspects gained from industry experts and opinion leaders have also been adhered to by the analysts while developing this insightful report on the global chlor-alkali market. Secondary research is leveraged for ascertaining the overall size of the chlor-alkali market.
A short market viewpoint offered in the report elucidates the macro-economic aspects that influence the growth of the chlor-alkali market, which includes global GDP growth rate, various industries growth rate, such as chemical, water treatment, pulp & paper and others. This report serves as an authentic resource of intelligence on the chlor-alkali market, enabling the readers to take fact-based decisions on the future direction of their businesses.
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Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
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