Chlor-alkali
Overview
The dynamic between chlorine and caustic soda and their varied end-uses creates a very dynamic market for chlor-alkali products, meaning that the markets do not grow equally.
Tracking this market requires a high level of understanding of the dynamics and the experience to interpret the market to provide an accurate price assessment.
Argus’ chlor-alkali experts will help you decide what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest chlor-alkali news
Browse the latest market moving news on the global chlor-alkali industry.
Middle East EDC output remains low post-Iran ceasefire
Middle East EDC output remains low post-Iran ceasefire
Singapore, 23 June (Argus) — Middle East ethylene dichloride (EDC) production remains constrained heading into the third quarter despite the US-Iran ceasefire and the reopening of the strait of Hormuz, as producers face persistent vessel congestion, high inventories, and weak vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) spot prices, market participants said. Before the US-Iran war, most Middle Eastern EDC suppliers were already running at reduced rates because of weakening chlorine netbacks into EDC and lower demand from the PVC sector. Most producers were either catering for EDC contractual supplies, or for their respective PVC production, rather than supplying the EDC spot market. Asian chlorine netbacks into EDC were assessed at -$86.30/t and -$76.51/t in January and February 2026, respectively, according to Argus data. Following the onset of the war, the closure of the strait of Hormuz made it uneconomical for domestic EDC producers to keep running since vessels could not leave the strait and domestic inventories piled up. QatarEnergy declared force majeure on deliveries of several chemical products on 9 March, while two Saudi EDC producers reduced rates heavily as they were unable to reach certain customers in south Asia. Since then, Argus suspension PVC (s-PVC) import prices into India, Vietnam and the Gulf Cooperation Council (GCC) have fallen by 35pc, 39pc, and 21pc, respectively, as of 19 June from their peaks on 20 March. May VCM monthly spot prices also saw declines of 20pc in northeast Asia and 29pc in southeast Asia, with recent indications pointing to further drops in June. This would bring both current PVC and VCM prices close to historical lows since before the US-Iran war, leading Middle Eastern EDC producers to reconsider increasing operating rates even as feedstock costs declined and the strait reopens. Most EDC producers are currently focusing on destocking efforts before ramping up production rates, but many expect that this will take time and likely determined by how quickly vessel congestion along the strait eases. Concerns from India remain surprisingly low Middle Eastern EDC supply primarily flows into India, as many PVC producers there rely on imported EDC feedstocks for their production. Total EDC imports into India in 2025 were 690,926t, with the Middle East contributing 51pc of the total, data from Global Trade Tracker (GTT) show. As a precautionary measure over the war-related uncertainty and reliability of feedstock supplies, the Indian government introduced duty waivers across different imports — including PVC — and the prioritisation of feedstock LPG output across certain sectors. But despite a potential delay in the resumption of EDC supply from the Middle East, along with other key feedstocks, Indian PVC producers are not so concerned over EDC supply security as some secured enough imports to meet more than three months of domestic demand. While current GTT data for 2026 is slightly delayed, EDC imports from western Europe into India between January and April 2026 were 57,776t — more than half of the full-year total for 2025. This could lead to a potential reintroduction of PVC import duties into India beyond 30 June to control overseas supplies into the country, with senior government officials recently investigation a potential extension to duty waivers before the ceasefire . But a decision has yet to be made on this, with market participants expecting further announcements from the government in the coming days. By Michael Vitiello India EDC imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Acid prices offsetting higher sulfur costs: Chemtrade
Acid prices offsetting higher sulfur costs: Chemtrade
Houston, 12 May (Argus) — Chemical producer Chemtrade expects sales prices for sulfuric acid and other sulfur-based products to offset feedstock costs, despite record-high sulfur prices, the Canada-based company said. The second-quarter Tampa sulfur settlement reached a new record at $655/long tonne delivered. Chemtrade said that increased selling prices of merchant acid helped to offset elevated raw materials costs. Meanwhile, both selling prices and demand for regen acid were supported by increased demand from refineries. US Gulf coast refinery utilization has averaged over 95pc since the week ending 6 March, according to the US Energy Information Administration. The closure of the strait of Hormuz in early March cut off supplies of jet fuel and distillate from producers in the Middle East, supporting increased throughputs and higher exports from the US. Higher sulfur costs have not reduced operations at the company's ultrapure acid facilities. It expects ramp-up of its ultrapure acid projects in Cairo, Ohio, and Tulsa, Oklahoma, to continue throughout 2026, with Chemtrade working with four semiconductor manufacturers for commercial agreements and quality certification. But Chemtrade reiterated the likelihood of some customers switching to hydrochloric acid from sulfuric acid for some applications such as mining and steelmaking, because of increased sulfur and sulfuric acid prices. The company also produces hydrochloric acid as part of its chlor-alkali business. Chemtrade reported a $25.4mn profit in the first quarter, compared with a $49.1mn profit the same period a year earlier. By Chris Mullins Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Chinese carbide PVC could temper US exports to Asia
Chinese carbide PVC could temper US exports to Asia
San Antonio, 31 March (Argus) — US suspension-grade polyvinyl chloride (S-PVC) prices have risen sharply since the onset of the Mideast Gulf war, driven by soaring international demand. But US exporters will have to compete with cheaper carbide-based PVC production in China, which may temper total exports into Asia. US S-PVC export prices rose to a $1,000-1,050/t fas Houston range during the week ended 27 March, up by just over 55pc from 27 February, the day before the conflict broke out in the Mideast Gulf, according to Argus data. Chinese carbide-based S-PVC prices rose to a $815-900/t fob China range at the end of March, up by only 36.1pc during the same period. Carbide-based PVC, derived from coal instead of ethylene, is cheaper to produce and is insulated from supply shocks to oil and natural gas. US export demand could erode because of this, as Chinese carbide-based exports become relatively cheaper than US ethylene-based PVC, according to participants on the sidelines of the American Fuel & Petrochemical Manufacturers' International Petrochemical Conference in San Antonio, Texas, this week. More than 80pc of Chinese integrated PVC production is carbide-based, according to Argus estimates. Chinese carbide-based operating rates are estimated by Argus at around 68pc. In fact, a further 10pc hike in operating rates to meet growing demand could replace all of the more expensive US ethylene-based exports. The US exported 621,050t of PVC to Vietnam in 2025, comprising 11pc of all US exports that year and making Vietnam the US' second-largest global buyer outside of Canada. This demand could be captured by Chinese exports if carbide-based prices in China remain more competitive to buyers than US ethylene-based. Additionally, this could dampen domestic prices for US producers, who — outside of ethylene costs, which have risen by 66pc since the beginning of the war — are comparatively insulated from rising energy costs in Asia and Europe. However, US exporters could pivot to shipping ethylene dichloride (EDC) instead of PVC. Feedstock EDC from the US is already in great demand from producers in India and could be used as an alternative to lower-quality carbide PVC, which has limited applications. By Gordon Pollock and Nicole Johnson Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US chlor-vinyl suppliers grapple with heightened demand
US chlor-vinyl suppliers grapple with heightened demand
Houston, 25 March (Argus) — US chlor-alkali markets are wrestling with heightened spot needs against strained inventories, as war in the Mideast Gulf disrupts traditional supply chains and fractures international trade — leaving the US as one of few supply options for global and domestic consumers. Domestic and global chlor-alkali market participants will convene in San Antonio, Texas, next week for the annual American Fuel and Petrochemical Manufacturers (AFPM) conference seeking supply security after a month of war in the Mideast Gulf upended supply lanes and drove US Gulf coast spot caustic soda export prices to a 17-month high. US Gulf coast manufacturers are insulated from volatility in global energy costs , positioning themselves as a stable supply option. A slate of integrated producers in Asia declared force majeure on vinyl operations in recent weeks because of feedstock ethylene supply disruptions, reducing chlorine requirements and curbing regional chlor-alkali production. Meanwhile, spot availability from Europe is dwindling as regional producers undertake planned turnarounds during the second quarter, funneling regional vessel demand to the US Gulf coast for immediate spot requirements. Heightened offshore demand for US-produced caustic soda and chlorine derivatives is strengthening in tandem with domestic demand from distributors grappling with shrinking imports. All caustic soda imported by the US west coast sailed from Asia last year, and about 96pc of movements to the east coast originated from Europe, census data collected by Global Trade Tracker (GTT) show. One vessel is on the water to Portland, Oregon, carrying more than 10,000 dry metric tonnes (dmt) of caustic soda from Japan and South Korea for delivery on 3 April, data from vessel tracking service Kpler show. Total Import estimates for February reached about 14,000 dmt and 13,700 dmt in March, data from vessel tracking service Vortexa show. The US imported about 17,000 dmt in January, 65pc lower than in January 2025, data from GTT show. US importers and distributors are expected to ramp up railcar purchases from domestic producers for second-quarter volumes following sharply lower imports estimated for the first quarter, sources said. But distributors will need to compete with offshore demand to secure supply, which is contributing to near-term bullishness. Domestic spot barge prices at the US Gulf coast typically carry a sharp premium over spot exports, with a premium averaging more than $90/dmt back to May 2017, Argus data show. A 27pc surge in US Gulf coast spot export prices compared with before the conflict have outpaced the 8pc increase in barge values during the same four-week window, narrowing the premium domestic sales command over the offshore market to $20/dmt — the thinnest margin since November 2024. Heightened competition between the domestic and foreign caustic soda markets could underpin further price increases in the near-term, with no clear off-ramp for the war in Iran and supply options dwindling. By Connor Hyde Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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EU-US trade deal leaves caustic soda market hanging
Insight papers - 14/07/25India’s Caustic Soda Curve- Capacity races ahead of demand in Chlor-Alkali Market
South Asia is the next emerging chlor-alkali market after northeast Asia and north America, adding significant capacity to the global supply. India is undergoing a major transformation.