Published December 2023
This report presents world capacity, production and consumption of chlorine and caustic soda (sodium hydroxide, NaOH) by region and application for 2012–22, with a forecast to 2027. It does not cover the production of potassium hydroxide (KOH), but includes the chlorine coproduced with KOH. Global chlor-alkali consumption is a function of global economic growth or decline. Chlorine demand is driven primarily by the construction sector, while caustic soda demand is driven primarily by the manufacturing sector. Chlorine consumption is largely dependent on the vinyl chain, which includes the production of EDC, VCM and PVC. Demand for chlor-alkali roughly follows worldwide GDP; however, aggregate global growth or decline does not account for the differences in regions, masking the stronger growth in developing countries versus mature (developed) economies.
The following charts show world consumption of chlorine and caustic soda:
Most chlor-alkali capacity is built to supply feedstock for the vinyl chain (EDC, VCM and PVC), demand for which is strongly correlated with construction spending and the general health of the construction industry. The vinyl chain currently represents over one-third of the global chlorine market. Thus, chlorine consumption and production are strongly driven by the construction industry, and depend on the growth of the global economy, since a country will spend more on construction if it has a healthy GDP.
Other organic chemical markets (propylene oxide, epichlorohydrin, TDI, MDI, polycarbonate and chlorinated intermediates) accounted for more than one-fourth of chlorine consumption in 2022, while use for inorganic chemicals, pulp and paper and water treatment together accounted for about 10% of the total.
Several trends have affected the chlor-alkali market. The first is the pace at which mainland China has reached a position of self-sufficiency in chlor-alkali and polyvinyl chloride (PVC) capacity. The second is the reduced cost of natural gas in the United States owing to the shale oil/gas boom, which has allowed it to regain its low-cost advantage for producing chlor-alkali and the vinyl chain, with only the Middle East having a lower cost basis. Future chlorine and VCM production will also be affected by the Minamata Convention on Mercury, which has called for catalyst replacement in mercury-based processes, such as mercury cell technology for chlorine production and the mercury-based catalyst used for converting acetylene to VCM. Mercury-based chlor-alkali plants are required to be phased out by 2025, with the possibility of two five-year extensions. In addition, no new VCM plants will not be allowed to use a mercury catalyst, and all VCM plants have to switch to a mercury-free catalyst within five years after a technically and economically viable alternative becomes available. As a result, mercury cell–based chlorine capacity has continued to decline, and there are not likely to be future expansions of acetylene-based VCM/PVC capacity.
For more detailed information, see the table of contents, shown below.
S&P Global’s Chemical Economics Handbook – Chlorine-Sodium Hydroxide (Chlor-Alkali) is the comprehensive and trusted guide for anyone seeking information on this industry. This latest report details global and regional information, including
Key Benefits
S&P Global’s Chemical Economics Handbook – Chlorine-Sodium Hydroxide (Chlor-Alkali) has been compiled using primary interviews with key suppliers, organizations and leading representatives from the industry in combination with S&P Global’s unparalleled access to upstream and downstream market intelligence, expert insights into industry dynamics, trade and economics.
This report can help you:
- Identify trends and driving forces influencing chemical markets
- Forecast and plan for future demand
- Understand the impact of competing materials
- Identify and evaluate potential customers and competitors
- Evaluate producers
- Track changing prices and trade movements
- Analyze the impact of feedstocks, regulations, and other factors on chemical profitability
