CHLOR-ALKALI MARKET ANALYSIS

Strict environmental regulations around the production of caustic soda and chlorine have increased compliance costs for manufacturers. Additionally, overcapacity issues have led to declining profit margins. Substitute products also pose a threat as industries seek out greener alternatives. Recovery in key end-use industries such as alumina has been slower than expected as well.

Opportunities: Growing demand for PVC from the construction industry

The growing demand for PVC from the construction industry presents a major opportunity for growth in the global chlor-alkali market. PVC, or polyvinyl chloride, has emerged as one of the most widely used plastics in the modern construction sector due to its versatile properties and competitive pricing. It can be easily molded into various components like pipes, window frames, siding, flooring, and insulation boards. Some statistics reflect the scale of ongoing construction activities around the world and the resulting rise in PVC consumption.  According to data from the United Nations, worldwide investment in infrastructure is expected to reach USD 94 trillion by 2040 to develop roads, bridges, utilities, and other construction needs. This will be fueled by rapid urbanization as more people migrate to cities in search of better living standards and employment. Asia and Africa are anticipated to absorb around two-thirds of all infrastructure investment over the next two decades. China alone plans to invest over USD 12 trillion in new projects by 2030. As developing economies prioritize housing, transportation, and energy projects, the production of PVC materials will necessarily need to keep up with demand.