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(ICIS) -- The US outlook for
water-treatment chemicals will likely be strong in the short term because of
dry, hot weather through much of the country, sources said on Wednesday. In
North America, the peak of the water-treatment season lasts from the US holidays
of Memorial Day at the end of May to Labor Day at the start of September. The
summer heat bodes well for companies such as Arch Chemicals, which makes calcium
hypochlorite, used in swimming pools and spas.
Other chemicals used in water treatment includes caustic soda,
chlorine-based chemicals and varying coagulants such as aluminium
sulphate. But the season comes at a time when the rest of the general
economy is still lagging.
Typically, peak summer water usage can be up to double that of winter
usage, said Alan Roberson, director of regulatory affairs for the American Water
Works Association, a trade group that represents municipal water utilities.
Cost for chemicals to treat the water - which can vary depending on
the geography and utility - are the second biggest cost outside of power.
Together, the two costs can make up about 10% of a utility’s budget.
And utilities are becoming constrained with rising raw material costs,
particularly in commodity markets such as caustic soda.
mrcplast.com
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