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Chlorine getting more costly; prices could rise even more.(NEWSROOM)
Fueled by growing energy costs, shrinking supply and high tariffs, chlorine-based chemicals for the aquatics industry have risen in price 20 to 50 percent since late 2004.
Currently, chlorine caustic is $350 per dry short ton, up from $100 last March. Chlorine is $330 per dry short ton vs. $200 last year.
"Raw materials and energy costs are increasing, [and] the cash cost to make chlorine caustic is 65 percent energy-related," said Rick Smith, executive vice president of Chemical Market Associates, a Houston chemical consulting firm that tracks chlorine prices. "The price today vs. the price 10 years ago ... is 200 percent higher.
"The other thing that has happened is that between 1996 and 2002, the market had a lot of overcapacity. That put some downward pressure on prices and caused producers to slow their reinvestment in the market. So now, you have high cash costs and a tight supply situation," Smith said.
Many manufacturers agree. "Part of the increase is to get back to a level of profitability in order to be able to invest back in the industry," said David Stephenson, sales and business director of the Isocyanurates ...
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Source: HighBeam Research, Chlorine getting more costly; prices could rise even more.(NEWSROOM)