The news of BioLab’s plant burning to the ground during Hurricane Laura in 2020 had a ripple effect on chlorine prices that has lasted for the past two years. We first reported that BioLab was rebuilding the plant back in July of 2021. A recent announcement that construction is completed and in time for summer production has pool industry analysts optimistic. “We are delighted to reopen our BioLab facility in time to support the 2023 pool season,” said Michael Sload, CEO of KIK Consumer Products.
BioLab is the nation’s second-largest manufacturer of dry chlorine products. An announcement that the Westlake, Louisiana facility is fully operational means that one of the driving factors for the initial spike we saw on the price of chlorine has been removed. Prices for dry chlorine products soared in 2021 due to concerns about shortages and remained high through the summer of 2022.
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Understanding The Correlation Between BioLab & Price Increases
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The conditions for a sudden surge in the price for chlorine stemmed partly from the fact that BioLab was out of commission. The main factor that was driving prices to explode during the past two years was largely due to the pandemic in general.
A large percentage of the population was quarantined, which meant more people than ever before, were at home and using their swimming pool. This put a much higher glut on demand than anticipated. With the pandemic shutting many plants down, and logistical delays plaguing distributors throughout most of 2021, these conditions as well as rising inflation in 2022 kept prices high through the summer.
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The reopening of the BioLab facility will certainly impact the supply chain in a positive way. “BioLab will be actively supplying the pool market for the 2023 season which should provide some relief,” said plant manager Donald Brunette.
Prices are predicted to begin dropping a bit in light of that fact but will certainly not sink lower than they were prior to the pandemic. As the population starts to adjust to a post-Covid world, the surge we saw for swimming pools has already begun to recalibrate to pre-pandemic levels. The only remaining catalyst for keeping chlorine prices from truly resetting back to 2020 is the cumulative rate of inflation is roughly 14.7% higher than in 2020.
While this should certainly factor into the equation, most experts agree that with this news, the chlorine shortage is finally over and a bucket of chlorine tablets should cost substantially less next summer than it has in previous years. This comes as welcome news for both consumers and pool professionals.
Source: https://t-tees.com
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