Chlorine prices have been on the rise for the past 2 years and everyone had hoped that in 2023 things would turn around for pricing. Stock prices are down, some as much as 65%. Bitcoin is down 60% and the US housing market has seen price decreases for the first time in over a decade. So it was a safe bet that chlorine prices had peaked and we would maybe see a trend down in 2023. That doesn’t seem to be the case at least at this point.
A range of factors has led to tight supplies in 2021 and 2022 including the rise in demand in the pool industry with many people staying home during the Covid-19 pandemic and an explosion in new pools being built in 2021 and 2022. Add to that the Bio-Lab factory burning to the ground in 2020 which was responsible for 2 million lbs. of Trichlor each year. This caused a scramble for other chlorine sources which caused a high demand for Liquid Chlorine and Cal-Hypo which of course was low on stock in 2021 with better stock last year (2022).
Chlorine is actually in the top 10 chemicals produced in the USA. It is used in several industries besides pool service including janitorial, and power washing and it is also an ingredient in Muriatic Acid believe it or not. Hydrogen chloride (HCl), a compound of the elements hydrogen and chlorine makes up Muriatic Acid. Chlorine products imported from China face a 40% tariff further adding to the high cost of chlorine. The good news is that the BioLab factory has been rebuilt and is ready for Trichlor production in 2023.
The bad news is that there is a lot of Trichlor on the market and it is at the peak of pricing. Since BioLab Inc., is a publicly-traded company and owns some very profitable companies AquaPill, Bioguard, Coral Seas, Natural Chemistry, Omni, Proguard, Red Leopard, and more, they may not be quick to ramp up their Trichlor production. After all, they are making good profits right now without selling a single Trichlor tablet in the past 2 years and probably are in no real rush.
What does that mean for the swimming pool industry and chlorine prices? If Cal Hypo is an indication things will not be pleasant this season. Cal Hypo Shock is selling for $8 to $10 per lb. retail and the season is still months away. That is an inflation rate of about 400% and to put that into perspective if gas prices went up 400% from 2019 to 2023 you would be paying $11 per gallon right now. If you think eggs are expensive going from $2.94 per dozen in 2019 to $6.00 per dozen today it is still very shy of 400% which would make the egg price for a dozen closer to $12.00. That is an amazing rate of inflation for chlorine type and it makes one wonder if that will affect the price of other chlorine types as consumers and pool pros switch off to liquid and even Trichlor which is now cheaper per lb.
Some solutions are of course using an enhancer to stretch the chlorine in the pool to make it last longer. Some of these would be a PoolRx, Nature2, Borates to 50 ppm, and a Phosphate and Enzyme combination added weekly. The price of these enhancers is offset by the high chlorine costs and if they can save you 30-40% on your chlorine usage they are more than worth it.
Or you can go to a Saltwater generator (SWG). The initial purchase and installation cost is anywhere from $1,000 to $2,000 depending on the size of the system, however, you won’t need to buy any chlorine product after installing an SWG. If you are concerned bout the cost of replacing the cell down the road, consider that cost to be a little more than the current cost of a 50 lbs bucket of cal hypo. A real bargain!
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