In concall transcript of Meghmani Organics Limited dt 28.05.2018, which is into Chor Alkali, Agrochem and Pigment, they have replied as below regarding chlor alkali ECU realization,
"I will tell you, under chlor-alkali we consider only caustic and chlorine, rest are the chlorine derivatives and that is the separate industry altogether, alright. And chlor-alkali we believe the price would be in the range of 35,000 to 40,000 this year. It is very difficult to forecast being a cyclic industry what is beyond the quarter, actually. But this year on an average we can believe it will in the range of this one. "
Also GACL Management has also said that Chlor alkali ECU will remain in range of Rs. 36000-38000 PMT during their past 2-3 quarters video interview with press.
During March 18, the prices were above this range and were hitting even 44000 PMT depending on the customer quantity offtake. The same has cooled off now.
Given the EU and US clamping down on old Mercury plants, the supply contraction will sustain the prices at these levels in india for next 2-3 years atleast. Thus it is safe to assume EBIDTA margins in range of 30% for Chlor alkali units going forward for next 2-3 years assuming the power costs don’t rise much