Matthew Blair: Sounds good. And then, Scott, I think you mentioned that chlorine has now flipped to the weak side of the ECU. Is that just a seasonal dynamic? Or is that something structural? And what are the factors driving that?
Scott Sutton: Yes. No, it’s not a seasonal dynamic, right? I mean there are some small seasonal things at play just like there’s not as much demand going into water treatment as you head into the winter season relative to heading into the summer season. But no, it’s just the fact that businesses that are supported by merchant chlorine, the supply/demand situation around those relative to the supply-demand situation around the caustic world are worse off. It’s a relative issue.
Matthew Blair: Got it. Thank you.
Operator: The next question comes from Steve Byrne from Bank of America. Please go ahead.
Steve Byrne: So, just following on your answer there, Scott, chlorine demand being worse off and — do you have a view as to how much of the lower demand that you’re seeing now for chlorine and chlorine derivatives versus two years ago is due to just left end-market demand versus destocking? Do you have the ability to split that? And potentially, is there a third bucket that’s driving this, and that is end markets that are shifting to different products, just product substitution that’s not a chlorinated product? Do you have a view on those three buckets?
Scott Sutton: Yes. Sure. Thanks for the question. Yes, I mean product substitution is pretty much zero, I would say. There is no structural issue here. So, then you get back to the other buckets, right? Taking inventory out of the channel, that’s a non-issue today. I mean that was done some time ago and from month-to-month, that varies. That’s a non-issue. This is all a temporary or transient issue around very weak demand. And that’s what it is.
Steve Byrne: And is that also true for the epoxy side, that it’s none of this — can you comment on how much of this lower demand is at least in part to low inventory levels in the channel? Is that an additional source of upside for you in 2024?
Scott Sutton: Yes. No, epoxy is totally different than that. Epoxy, there’s a structural issue, right? Over the last 18 to 24 months, China added about 20% to the world’s productive capability for epoxy. At the same time, their demand, along with Europe’s, together, they constitute 75% of the world’s demand, has really diminished. So you have both aspects going on in epoxy. And that’s why we’ve had to make some structural changes to our epoxy business to be able to combat that for the long-term, and we’re doing some things in the short-term as well. Epoxy is going to have a much longer road to recovery, but it’s going to be a steady, methodical recovery.
Steve Byrne: Thank you.
Scott Sutton: Sure.
Operator: The next question comes from Vincent Andrews from Morgan Stanley. Please go ahead.
Vincent Andrews: Thank you and good morning, everyone. Just as I’ve been digesting this latest initiative and listening to all the Q&A on the call this morning, I guess, a conclusion I’m coming to, and please correct me if this is just completely wrong, is that for you to really be successful with this initiative, you will need to see an inflection in demand at some point in the middle of next year. And I just want to hear more about that and where you think it’s going to come from. And I ask it this way, we’re kind of halfway through earnings season maybe. And I’m — most of the companies that I’m listening to aren’t really talking about an inflection in demand next year so much as it just seems like there’s a rebase in demand that’s taken place versus what we saw over the last couple of years.
And well, maybe we’re back to 2019 levels are lower, but it doesn’t sound like there’s going to be some big snap that’s coming. So any comments you have on that? And again, happy to be wrong.
