Why is the Price of Chlorine Surging? 

Supply chain constraints, rising inflation, and labor supply shortages have marked much of the last half of 2021, and as we start the new year, customers and companies alike will need to adjust to the new market. This is true for pool maintenance and chlorine prices. Chlorine supplies are down, transportation is more expensive, and stores are struggling to find workers. Please know that pool maintenance service providers are working hard to cut costs so that the rising costs don’t hit your pocket book. We’re doing everything we can to manage this difficult economy.

Family Pool Maintenance is here to explain why the supply of chlorine is down, prices are up, and what you can expect for the foreseeable future.  

COVID pool construction peaked demand for chlorine and pool supplies 

One of the more obvious results of pandemic-related lockdowns was the emphasis people put on improving their homes. People spent more time at home due to reduced social gatherings, and many opted to install a pool. 

The result was one of the most significant year-to-year increases in the nationwide demand for pool supplies. According to research from Cape Analytics, there was a 20% increase in above ground pool construction from October of 2019 to October 2020. With additional stimulus payments being disbursed in 2021 and the pandemic showing no signs of slowing, 2021 numbers will likely continue their meteoric rise. In states with enhanced lockdowns like California and New York, pool construction surpassed even the most optimistic estimates. 

This all comes on the heels of what was already anticipated nationwide demand increases due to residential construction growth and rising incomes. As more and more Americans have moved out from cities and into the suburbs, the demand for pools and hot tubs accelerated. When coupled with a global pandemic that has limited access to public pools and swimming facilities, demand for pools has skyrocketed. 

With more pools comes a greater need for cleaning chemicals. Therefore, the increase in the number of pools has pushed up the price of chlorine.

A major chlorine plant is going offline until Spring of 2022

If increased demand weren’t enough to stretch supply and inflate prices, a major chlorine manufacturer has halted production until Spring of 22. in August of 2020, Hurricane Laura made landfall in Louisiana. The combined storms of Laura and Marco forced the shut down of hundreds of gulf oil and gas platforms, disrupted 58% of the oil supply and 45% of the natural gas supply offline, and directly impacted one of the largest U.S. chlorine producers Bio-Lab. 

The pool and spa treatments factory experienced a structural fire that destroyed much of the operation and pushed resumption of production until Spring of 2022. With the disruption of U.S. supply of chlorine tablets, industries who rely on the chlorine for their own processes began stockpiling supply, crimping what was already a limited supply chain. With Bio-Lab going offline only two domestic producers of chlorine tablets remained, Occidental Petroleum and Clearon Corp. 

International supplies of chlorine tablets typically off-set domestic production losses, however, global supply chain issues have persisted. With the nation’s ports backed up due to lack of available containers, driver shortages, unloader shortages, etc. the international response to chlorine supply shortages has not alleviated concerns. Economic analysts monitoring the situation provided grim projections in the wake of the shut down, some suggesting a 70% spike in chlorine prices in 2021. While that projection didn’t completely materialize, there is still significant concern that the supply problem will persist into summer of 2022. 

Mined rock salt, a key ingredient in chlorine, saw steep decline 

Enhanced demand, natural disasters, and supply shortages notwithstanding, the entire process of how chlorine is made was affected by the pandemic. The basic chemical structure of chlorine depends on the mining of rock salt. The rock salt is mined for creation of a salt solution that via a process of electrolization, becomes elemental chlorine. From the mining of the salt itself, to its electrolization, and storage, the global pandemic reduced the capacity of mining operations, mandated social distancing in labs, and reduced availability of employees who would otherwise be available to keep processes moving. 

As we continue to mitigate health concerns in the manufacturing and mining process, supplies of lab-based products will continue to see high prices. This means chlorine will likely to remain in a state of pricing flux. 

When we can expect relief from high chlorine prices?

The good news is that as our economy rebounds and the country opens back up, demand for residential pool construction and supplies will likely taper to a normal level. People will be able to return to public pools and pursue old hobbies like concerts, sports, and community events. Fortunately, a July 2021 announcement from Louisiana governor Edwards indicated the lab where a bulk of household products and swimming pool chemicals would be back producing in 2022. 

For the time being, the chlorine market will remain strained and pool owners will continue to feel the effects. Analysts are collecting information about the number of residents shifting to saltwater pools, installing AOP systems, and utilizing other UV cleaning systems as a result of the chlorine shortages, but it remains to be seen how significant the price surges will be throughout 2022. For pool owners, we recommend stocking up on chlorine in case your local provider runs out of stock. This way you can stay on top of maintenance schedules and routine pool shocks. 

For those who are seeking alternatives, a conversation with your local pool professional to discuss chlorine alternatives may be in order. 

Family Pool Maintenance is committed to keeping Delaware’s pools clean and safe. We value our customers and don’t raise our prices without looking into every possible alternative. Over the past few months, we’ve streamlined our company and adjusted our business model to minimize the impact on pool owners. Unfortunately, chlorine is hard to come by right now, but we are constantly monitoring the market and will let our customers know as soon as the market corrects. 

Have questions about the most efficient way to use chlorine this year? Give us a call!