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GLOBAL CHLOR-ALKALI MARKET REPORT
MARKET STATISTICS
CAUSTIC – in Asia, pricing sentiment for spot caustic has remained largely stable. November 16, 2011 Poor netback from chlorine due to demand weakness on vinyls and other chlorine SUPPLEMENT NO. 210
SUPPLY/DEMAND BALANCES OPERATING SCHEDULES TRADE STATISTICS

derivative sectors has kept the overall caustic supply/demand balanced. in Europe,caustic soda availability is being restricted by a significant fall in demand for chlorine derivatives, such as PVC. Producer-held caustic soda inventories in West Europe fell by about 3 percent to 227 thousand metric tons and are low. Producers are meeting CMAI contractual obligations, but locating spot volumes can be a challenge. CMAi expects Bangkok ♦ Dubai ♦ Düsseldorf ♦ Houston Decemberdemand to weaken and the market to become more balanced. Domestic London ♦ New York ♦ Shanghai ♦ Singapore European prices are currently stable, although in Southern Europe, November monthly 1401 ENCLAVE PARKWAY contract prices are experiencing some erosion. italian prices are reportedly down €10 SuitE 500 per dry metric ton compared to october levels. in the u.S., producers continue to HouStoN, tExAS77077 push for the remainder of the $65 per dry short ton price increase, with mixed reports tELEPHoNE: (281) 531-4660 of just how tight supplies are. Spot prices have not moved significantly, but another FAx: (281) 531-9966 supply-side disruption in Japan has the market watching the international pricing CLIENT SERVICES closely for another potential move upward. REPRESENTATIVES: CHLORINE – inEurope, chlorine demand remains depressed with no hope of Kelly Lu (Singapore) an improvement before next year. october 2011 chlorine production in West Eu(65 )6501 1510 rope was 2.3 percent below october 2010. on a year-to-date basis, West Europe is Kelly.Lu@ihs.com still marginally ahead of 2010, but the trend points downward. in the u.S., demand remains weak and moving lower as the year comes toa close. Prices remain under Hannah Conlon (London) downward pressure. 44-207-766-6680
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Hannah.Conlon@ihs.com Jennifer Prince (Houston) (281) 752-3269 Jennifer.Prince@ihs.com

KOH – Producers are feeling a squeeze on margins due to rising industrial grade KCL prices while KoH prices have been relatively stable. Reports are in the market that roughly a $40 per short ton price increaseon KCL has been implemented in october, leading to speculation that KoH producers will make a price move to protect margins. HCL – Early in the month a $75 per short ton price increase for all grades of muriatic acid was announced in the u.S. the hydrochloric acid market is tighter than ever, while demand remains strong in all segments but mainly in the oil and gas drilling sector. VINYLS –Northeast Asia vinyls market sentiment has remained soft. the weak
demand outlook in the region is not likely to change in the short term although PVC prices appear to have stabilized. Some buyers have started to purchase on speculation that the vinyls chain has reached a bottom. in Europe, PVC buyers are only buying what they absolutely need to keep their converting lines running and PVC producers areturning back plant operating rates and/or exporting PVC at very low netbacks, just to prevent inventories from getting out of control. S-PVC contract prices are expected to fall in November by as much as €30 to €40 per metric ton depending on location. turkish import prices are below uS$900 per metric ton CFR turkey for European PVC. the u.S. market for vinyls is exhibiting seasonal decline in analready weak domestic market, relying heavily on exports- but prices there are weak as well. Chlorine values in the chain are very low to negative at current PVC/EDC prices.

CONSULTANTS:
Eddie Kok (Singapore) (65) 6501 1536 Eddie.Kok@ihs.com Mike Smith (Düsseldorf) 49-211-7100-8112 Mike.Smith@ihs.com Steven Brien (Houston) (281) 752-3237 Steve.Brien@ihs.com Joel Lindahl (Houston) (281)...