In the second quarter of 2020, the world’s biggest chlor-alkali producer Olin posted sharp losses due to crashes in demand and prices of most of its products amid the shutdowns to limit the spread of coronavirus.
The net loss in the last quarter amounted to USD120.1 million compared to the year-ago period of USD20 million loss.
In the quarter, its caustic soda pricing climbed by 8% but EDC prices nosedived by 50% due to the plummeting demand of chlorine and PVC demand. Sales for chlor-alkali and vinyl segment was down to USD651.7 million from the corresponding period in 2019’s USD909.2 million.
CEO John Fischer commented, “Overall, chemical business sales have increased from the April low point and continued to rise in July.”
The steep tumble in chlor-alkali prices tightened the supply for caustic soda. The export prices were boosted by supply to peak at USD400/dmt FOB USG in mid-June but returned to USD300/mt FOB on Monday. Simultaneously, demand for caustic soda in the US slumped due to the weaker demand for alumina and pulp and paper.
Looking ahead, Fischer added that the chlor-alkali and epoxy businesses were still challenged by the current economic developments leading to the persisting volatility of customer order patterns and limited future demand.
The quarterly results will be discussed by the company’s executives during a conference call on Thursday.
