MOSCOW (MRC) -- Olin has been conducting a turnaround at its 748,000 mt/year ethylene dichloride (EDC) plant in Freeport, Texas, reported S&P Global with reference to a source familiar with company operations.
The turnaround was expected to reduce EDC oversupply when prices have been under pressure amid seasonally high chlor-alkali rates, market sources said.
Olin, the world's largest chlor-alkali producer, did not respond to an inquiry seeking comment. The work was expected to last into the early fourth quarter.
The latest industry statistics show US chlor-alkali rates reached 92% in August, the highest so far in 2019. While chlorine demand seasonally rises for water treatment during the summer months, higher chlor-alkali rates also boost EDC stocks as chlorine mixed with ethylene makes EDC, a precursor to construction staple polyvinyl chloride, for which demand also rises during the construction-heavy warmer months.
As MRC informed earlier, in October 2015, Olin completed merger with Dow chlorine products businesses.
EDC is a feedstock for the production of polyvinyl cloride (PVC).
According to MRC's ScanPlast report, demand in the Russian unmixed PVC market increased only in the emulsion segment in January-July 2019, the market of suspension polyvinyl chloride (SPVC) decreased by 7%. Only producers of plastic compounds and plasticized films showed the growth in demand for the suspension. Scheduled maintenance works simultaneously at two Russian plants did not result in an acute shortage of SPVC in the market. Higher imports helped to avoid shortages.
Olin Corporation manufactures chemicals and ammunition products. The Company manufactures and sells chlorine, caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, sodium chlorate, bleach products, and potassium hydroxide. Olin also manufactures products that include sporting ammunition, reloading components, small caliber military ammunition and industrial cartridges.