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Feature Story

January 2018


China Plant Shutdowns May Affect Pool Operations & Budgets

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By Deborah L. Vence

China's shutdown of its chemical plants back in December that provide cyanuric acid (CYA) will have an effect on the industry, potentially forcing up prices for the chemical stabilizer.

China has been "implementing an aggressive environmental program with new, stricter governmental regulations. Included in this program is energy conversion from coal to natural gas in both residential and industrial applications, as well as wastewater treatment," according to information from an industry newsletter, written by Art Harre, chief sales officer for a company that supplies chemicals for many industries, including pools and spas. In turn, "this is having a massive effect on China's chemical industry production efficiency and costs. To date, more than 70,000 chemical plants have been shut down or production severely reduced."

"Basically, CYA is in a 'force majeure' position currently. Got to pay the new price or not get product," Harre said.

CYA helps to keep chlorinated pools safe, stabilizing the chlorine in water and protecting it from the ultraviolet rays from the sun.

China produces most of the granular and powder CYA that is used in the United States for pool water stabilization. And, because of the rapidly increasing production cost, CYA pricing has increased 40 percent to 50 percent and CYA is in short supply.

The new costs and plant closures are affecting the current production of CYA. What's more, Chinese factories have indicated that all purchase orders that have been placed with the factories are cancelled and must be re-issued at the new price, according to information from the newsletter.

Most of the factories in China have been closed since the beginning of December 2017 and do not plan to re-open until after the Chinese New Year, midway through February.

"Our price will only be confirmed after containers 'leave port of China.' For that reason, it is impossible for us to commit to new pricing for CYA at this time," Harre stated in the newsletter.

"Additionally, because CYA is the main component in both Trichlor and Dichlor, and there have been increases in caustic soda, chlorine and energy, we anticipate significant price increases for Trichlor and Dichlor."


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