Dip anticipated in chlor-alkali and EDC prices in USA in H2-2011

11-Jul-11

Formosa and Shintech's additional capacity coming on stream in USA is estimated to lower chlor-alkali and EDC prices during the second half of the year. Additional capacity of chlor-alkali and ethylene dichloride is expected to come onstream at Formosa Plastics Corp’s expanded unit at Point Comfort, Texas, by mid-July, as per Platts. After conclusion of its 25% planned expansion capacity, total production of the chlor-alkali plant will be 200,000 tpa, while EDC will expand to 280,000 tpa. Shintech is also expected to complete construction of a second vinyls plant at Plaquemine, Louisiana this year, with capcity to produce 800,000 tpa VCM, 530,000 tpa caustic soda, and 600,000 tpa PVC. Some traders have anticipated lower chlor-alkali and EDC prices during the second semester of the year due to Formosa and Shintech's new capacities. However, some producers considered that the additional production would be for internal consumption for both companies.