The news that BioLab’s plant was destroyed by Hurricane Laura in 2020 caused a ripple effect on chlorin prices which has been ongoing for two years. In July 2021, we reported that BioLab was rebuilding this plant. Pool industry analysts are optimistic after the announcement that construction was completed in time for summer production. Michael Sload, CEO at KIK Consumer Products, stated that he was delighted to reopen his BioLab facility in order to support the 2023 season.
BioLab is the country’s second largest manufacturer of dry chlorine products. The announcement that the Westlake facility in Louisiana is now fully operational indicates that one of the main factors behind the initial spike in the chlorine price has been eliminated. Concerns about shortages caused prices for dry chlorine products to soar in 2021 and remain high through 2022.
Understanding the Correlation between BioLab and Price Increases
BioLab’s inability to function caused a sudden rise in chlorine prices. The pandemic was the main reason that prices exploded over the past two-years.
Large numbers of people were quarantined. This meant that more people than ever were allowed to use their swimming pools. This resulted in a greater glut than expected. These conditions, along with increasing inflation in 2022, kept prices high throughout the summer.
Reopening the BioLab facility is sure to have a positive impact on the supply chain. Donald Brunette, plant manager, stated that BioLab will supply the pool market for the 2023 seasons. This should help to alleviate some of the pressure.
Although prices are expected to drop slightly in light of this fact, they will not fall below what they were before the pandemic. The post-Covid surge in swimming pool sales has already started to slow down. 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.
This should be taken into account, but experts agree that the chlorine shortage has ended. A bucket of chlorine tablets will likely cost significantly less next year than it did in previous years. This is good news for pool professionals and consumers alike.
The post Reopening of the BioLab Plant Will Impact Chlorine Prices 2023 appeared originally on PoolMagazine.com. Get the Latest Pool News.
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