The new report by Procurement Resource, a global procurement research and consulting firm, looks in-depth into the costs involved in the production of chlorine gas (Cl2). The comprehensive report analyses the production cost of the material, covering raw material costs and co-product credit, equipment costs, land and site costs, labour wages, maintenance costs, financing charges, and the depreciation cost. The extensive study describes the step-wise consumption of material and utilities, along with a detailed process flow diagram. The report also assesses the latest developments within the chlorine gas (Cl2) industry that might influence the costs of production, looking into the capacity expansions, plant turnarounds, and mergers, acquisitions, and investments.
Chlorine gas (Cl2) is a diatomic element, which appears as a dense yellow-green gas. It has a pungent choking smell. It is famously used in treating water in swimming pools. It is also used to make various products such as paints, paper, textiles, insecticides, and more. It is currently being extensively used as a disinfectant.
The overall chloralkali market witnessed a dampened demand with the outbreak of the COVID-19 pandemic due to the reduced demand for their downstream derivates from the automobile and construction sector. During April-May 2020, the Asian market also witnessed tightened operating rates due to slow demand recovery because of the COVID-19 lockdowns in major consuming markets. Meanwhile, in the US, the chlorine supply is likely to be affected by the chlorine gas leak at a plant in Westlake, Lousiana in the aftermath of Hurricane Laura in August 2020. The plant, which was shut down due to the hurricane, continues to be shut down in the aftermath. These factors are expected to influence the production cost for chlorine gas (Cl2).
The production cost report by Procurement Resource assesses the production of chlorine gas (Cl2) via electrolysis, via oxidation, or via hydrogen chloride. One of the most common methods to produce Cl2 is through sodium chloride by electrolysis. This process is also known as chlor-alkali process. By performing electrolysis with sodium chloride, chlorine is formed, along with sodium hydroxide and hydrogen gas as the by-products.
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