Chlorine – Uses, Prices, and Production

This blog is the fifth in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on chlorine.

Uses.  Uses of chlorine include:

Ø  As a water disinfectant;

Ø  As a surface disinfectant;

Ø  As a raw material in the synthesis of hundreds of compounds; and

Ø  In industrial processes, e.g., as a solvent; in bleaching paper and textiles; in extracting metals from their ores; and others.

The following table provides chlorine percentages in its uses:

use	percentage
in polyvinyl chloride production	28-32%
as industrial solvents	24-26%
In organic compound synthesis	12-15%
In inorganic compound synthesis	12-15%
in water disinfection	5-10%
in the pulp and paper industry	4-6%
others	15% or less

Chlorine’s usefulness as an element derives from its chemical properties of being highly reactive (which accounts for its enabling the synthesis of compounds) and being able to stabilize those compounds, once formed, because of its strength of creating a stable state after it is embedded in the structure.

Prices.  A chlorine 2019 metric ton price (mt), found on the Internet, is $193.   Apparently chlorine does not vary a lot in price over a period of months.

Production.  Global chlorine 2019 production estimates are in the 70s to 90s million mt range.  With a 2019 price for chlorine of $193 per mt (see prices above), estimated global revenues from chlorine sales in 2019 are from $13.5 billion to $17.4 billion ($193 per mt times 70 million mt and times 90 million mt).

The chlorine production values given above are for producing chlorine gas.   Chlorine is too active to be found in elemental (atomic) form.   However, large amounts of chlorine are found in the earth crust as chlorides, e.g., sodium chloride.  Most chlorine gas is produced by electrolysis of a solution of sodium chloride, forming chlorine gas and sodium hydroxide.

Also, the sales values given above are only for the sale of chlorine gas.  For example, the sales values do not include the sale of the many compounds containing chlorine atoms, such as polyvinyl chloride (pvc).   The chlorine sales revenues do include the sale of chlorine gas used in various processes, such as water disinfection.

Assume the cost of chlorine gas for pvc makers in 2019 is approximately $4.7 billion ((30% (above table) times $15.5 billion (from above, average 2019 chlorine sales revenues)).   And, Internet sources indicate that 2019 pvc revenues was approximately $65 billion.  This suggests that pvc makers had very good margins on chlorine gas purchases ($65 billion pvc sales - $4.7 billion chlorine gas cost = $60.3 billion return; $60.3 billion/$65 billion = 93% margin).

The chlorine gas used in making pvc indicates a value added or multiplier effect.  For example, $4.7 billion of chlorine gas value leads to $65 billion of pvc value.  Quantitatively this could be viewed as a multiplier = 13.8 ($65 billion/$4.7 billion).