Canada's Chlorine Price Amounts to $142 per Ton After Five Consecutive Months of Decline

Canada Chlorine Export Price in December 2022

In December 2022, the chlorine price amounted to $142 per ton (FOB, Canada), approximately reflecting the previous month. Over the period under review, the export price continues to indicate a noticeable shrinkage. The most prominent rate of growth was recorded in July 2022 when the average export price increased by 1.5% m-o-m. Over the period under review, the average export prices hit record highs at $196 per ton in January 2022; however, from February 2022 to December 2022, the export prices stood at a somewhat lower figure.

As there is only one major export destination, the average price level is determined by prices for the United States.

From January 2022 to December 2022, the rate of growth in terms of prices for the United States amounted to -2.9% per month.

Canada Chlorine Exports

In December 2022, overseas shipments of chlorine decreased by -5.2% to 66K tons, falling for the third consecutive month after two months of growth. Overall, exports, however, posted a resilient increase. The pace of growth appeared the most rapid in March 2022 when exports increased by 54% against the previous month. The exports peaked at 99K tons in September 2022; however, from October 2022 to December 2022, the exports failed to regain momentum.

In value terms, chlorine exports declined to $9.3M (IndexBox estimates) in December 2022. In general, total exports indicated a moderate expansion from January 2022 to December 2022: its value increased at an average monthly rate of +4.0% over the last eleven months. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on December 2022 figures, exports decreased by -35.3% against August 2022 indices. The pace of growth appeared the most rapid in June 2022 with an increase of 47% m-o-m. The exports peaked at 14K tons in August 2022; however, from September 2022 to December 2022, the exports failed to regain momentum.

Canada Chlorine Exports by Country

the United States (66K tons) was the main destination for chlorine exports from Canada, with a approximately 99.9% share of total exports. From January 2022 to December 2022, the average monthly rate of growth in terms of volume to the United States amounted to +7.3%.

In value terms, the United States ($9.3M) also remains the key foreign market for chlorine exports from Canada. From January 2022 to December 2022, the average monthly rate of growth in terms of value to the United States totaled +4.1%.

Factors Affecting Chlorine Prices

Chlorine is an essential chemical for many industries, including water treatment, paper and pulp production, and the manufacturing of plastics. In Canada, the price of chlorine has been rising in recent years due to increased demand and limited supply. This has caused challenges for businesses that rely on chlorine for their operations. Many companies have had to pass on these higher costs to their customers in the form of higher prices for their products or services. This has put pressure on margins and made it difficult for businesses to remain competitive.

One factor that has contributed to the rising price of chlorine is increased demand from developing countries. As these countries grow economically, they require more chlorine for their own industrial and domestic uses. This has led to higher prices for chlorine on the international market.

Source: IndexBox Market Intelligence Platform