Chlorine Shortage Hits the Pool Supply Industry; Which Firms Stand to Benefit the Most?

 Chlorine Shortage Hits the Pool Supply Industry; Which Firms Stand to Benefit the Most?

Summer is here but for many the pool party is going to have to wait a bit longer. In a global economy filled with shortages that are driving prices for everything from commodities to used car higher, chlorine is the latest good to be in short supply.

What’s Going On?

With summer kicking off soon, people and organizations are looking to get their body of water crystal clear once again but demand for chlorine is driving prices higher. Similar to how the global chip shortage was caused by a recent plant fire in addition to coronavirus-caused production halts, the chlorine shortage is largely driven by a fire that occurred at a chlorine manufacturer’s plant last year. The fire occurred in Westlake, Louisiana at the Bio-Lab manufacturing facility in August after Hurricane Laura, destroying the plant and ceasing production.

The result has been a shortage in chlorine that has pushed prices u p 37% year-over-year and predictions of a 58% increase in price during the summer according to Goldman Sachs analyst Kate McShane. Many pool supply shops are uncertain as to whether they will have enough supply for the pool season. A growing concern is a situation where people go out and buy more than necessary in order to make sure they have enough for the season, only leading to a worsening situation (i.e. the new toilet paper and hand sanitizer). The industry already experienced a similar problem last year with pool products during the pandemic as demand for both in-ground and…

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