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.
Falling mortgage rates may boost US housing, PVC
Falling mortgage rates may boost US housing, PVC
Houston, 6 March (Argus) — US mortgage rates this year have sunk to their lowest level in more than three years and could unlock more consumer demand in a housing sector that has faced falling affordability . But tepid early-year housing demand has left polyvinyl chloride (PVC) suppliers cautiously optimistic that demand in the housing market could strengthen compared with 2025, with most expectations centered around a repeat of last year. About 51pc of outstanding mortgages have interest rates below 4pc, according to third quarter 2025 data from the US Federal Housing Finance Agency. With current rates as much as 50pc higher, that means more current homeowners who would otherwise be in the market for a new home are staying put. Realtors and mortgage experts anticipate a nominal rebound in housing demand this year as average rates on a 30-year mortgage slumped below 6pc for the week ended 27 February — the first time in more than three years — before crawling back to an average 6pc this week, Freddie Mac data show. "Rates below 6pc are an important psychological milestone for both buyers and sellers," said Nadia Evangelou, senior economist and director of real estate research at the National Association of Realtors (NAR). "Nearly 5.5mn additional households can afford the median-priced home when rates fall from 7pc to 6pc." Housing affordability improved early this year on higher income and declining interest rates. Gradually higher purchasing power early this year underpins expectations of an 8pc increase in 2026 home sales and indicates an anemic US housing sector could be at an inflection point, data from the Mortgage Bankers Association (MBA) show. But new-home construction remains subdued, and a marginal decrease from 2025 is still expected. The MBA forecasts a 2pc decline this year in total housing starts from 2025, while the NAR projects a 1pc increase in single-family starts. Bullish demand signals in the domestic housing market have not shifted outlooks from PVC suppliers, who are maintaining tempered demand expectations from home construction. Current outlooks largely anticipate PVC demand into new-home construction to mirror 2025, which extended the multi-year demand slump in the sector. Instead, PVC suppliers are increasingly bullish on rebounding demand in the remodeling and wiring and cable industries, sources said. Residential remodeling activity is expected to grow by 3pc in 2026 and by 2pc in 2027, data from the National Association of Home Builders show. This trend is supported by an aging housing stock, homeowners locked into lower mortgage rates, and older homeowners not purchasing new homes. US home builders share the PVC industry's cautious outlook. A survey of home builders in February continued to paint a cooling new-home market, data from the NAHB/Wells Fargo Housing Market Index show. The leading concerns for surveyed builders are buyers waiting for lower mortgage rates, concerns about the broader economic environment, and high Federal Reserve interest rates. The US Federal Reserve is generally not expected to reduce its target interest rate in the first half of the year, with expectations of rate cuts in 2026 significantly dampened by stubbornly-high inflation and weaker-than-expected employment numbers in recent months, CME FedWatch data show. By Maya Porter and Gordon Pollock Mortgage rates vs. Residential construction permits Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Caustic soda freight costs rise on Mideast Gulf war
Caustic soda freight costs rise on Mideast Gulf war
Houston, 3 March (Argus) — Freight costs for US caustic soda exports soared early this week as ship traffic through the strait of Hormuz is at a standstill after the US and Israel attacked Iran on 28 February, redrawing trade routes to key destinations and fueling higher energy costs. Caustic soda freight costs jumped by as much as 50pc from the US Gulf coast compared with last week, various suppliers said. Freight to Brazil topped as much as $180/dry metric tonne (dmt) on Tuesday, marking a 28-38pc increase from late-February estimates, sources said. Additionally, freight costs for transatlantic routes climbed by 37pc, a trader added. Escalating war in the Middle East does not threaten US caustic soda supply availability, nor does it immediately threaten global trade , but lends further support to rising spot values through logistical costs as global suppliers and shippers avoid the strait of Hormuz . Iran on Monday claimed it has "closed" the strait of Hormuz connecting the Mideast Gulf and Gulf of Oman and intends to burn any ship that tries to pass through. Vessel traffic through the key passage for crude, petrochemicals, fertilizers and other commodities has come to a virtual halt in the days after the US and Israel attacked. Higher freight costs from the US further increase net forwards to the Mediterranean and Brazil, but spot export availability from the US is expected to shrink in the next 30-45 days as producers undertake planned turnarounds. Elevated freight combined with seasonal maintenance increased early-week price discussions for new sales, with one source indicating offers could climb into the mid-$400s/dmt fob — a level last seen in June, Argus data show. By Connor Hyde Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
European PVC sector warns of closures, rationalisation
European PVC sector warns of closures, rationalisation
London, 2 February (Argus) — Closures and rationalisations in the European polyvinyl chloride (PVC) and chlor-vinyls chain are likely without more protection from imports and support from government to reduce energy costs, according to European producers . High feedstock costs put European chemical producers at a structural disadvantage compared with other producing regions, and this is coupled with weak domestic demand from outlets such as the construction and automotive sectors. PVC is particularly exposed to the high cost of energy because of the electrolysis process used to produce chlorine. Natural gas costs averaged $12.46/mnBtu on the European TTF day-ahead index over the past year, while US natural gas costs at the Henry Hub averaged $3.76/mnBtu over the same period. Asian gas costs are closer in scope to Europe but lighter environmental regulation and emissions costs compared to Europe mean chemicals firm there operate with a cost advantage. European demand for PVC was largely flat in 2025, with domestic producers operating at low rates, participants said. Chemical company Ineos' chlor-vinyl subsidiary Inovyn has called on the EU to use anti-dumping duties to combat "low-cost, high-carbon imports" flowing into Europe from China, South Korea and Taiwan. The bloc placed anti-dumping duties on US and Egyptian origin product in 2024, at between 63.7-100.1pc for PVC resins, effectively cutting of supply from these countries. But these have now largely been replaced by imports from Asia-Pacific. Total imports of PVC resin into Europe from China, Taiwan, Mexico and South Korea were roughly 410,300t in the first 11 months of 2025, according to Global Trade Tracker, more than double the same period a year earlier. Total imports into Europe rose to 540,000t from 469,000t in that time. Extension of duties would further cut European imports, as could the scheduled cancellation of a 13pc Chinese export tax rebate for PVC on 1 April. This is likely to raise Chinese export prices, making the east-to-west flow for PVC less favourable. Some European producers welcomed this news, noting that Chinese material was often the cheapest on the import market and the change may help raise the price floor for the whole market, supporting European producer margins. Imported spot material from South Korea is closer in price to European domestic contracted material, and Chinese and Taiwanese resin has consistently been cheaper. The Argus cif Europe import price for PVC resin hit a recent low of $715/t because of these cheaper imports, although it has ticked back up marginally as of last week. Inovyn's call for wider duties has been echoed by Vynova, whose Belgium subsidiary Tessenderlo is operating under a supervisory order until April after financial constraints emerged in December. A wider financial restructuring of the group is being worked on. Vynova companies in England and Germany have entered insolvency proceedings and may or may not emerge as part of the restructured entity. The company closed its 225,000 t/yr PVC-producing asset in Beek, the Netherlands, in 2025 citing pressure from "global overcapacity, persistently weak demand and increased competition from regions with lower production costs and less stringent regulations". Vynova's struggles are not unique. Spolana shut a 135,000 t/yr capacity site in the Czech Republic, and Fortischem closed a smaller site in Slovakia. Inovyn shut half of its PVC capacity at its Martorell, Spain, site before December 2025. The site was allocating fewer volumes to the export market, particularly Turkey, people with knowledge of the matter said. By George Barsted Monthly imports of PVC into Europe from China, Mexico, South Korea and Taiwan '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Viewpoint: Asia energy storage to accelerate in 2026
Viewpoint: Asia energy storage to accelerate in 2026
Singapore, 7 January (Argus) — Stronger government signals and new industry initiatives to support energy storage systems (ESS) in Asia-Pacific are set to accelerate deployments, creating ripple effects across the battery and lithium market in 2026 as participants eye a new growth engine. ESS deployment remains uneven across Asia-Pacific. China accounts for 88pc of the region's 85GW capacity in 2024, according to industry group Energy Institute. The remainder is concentrated mainly in Australia and South Korea. These countries aim to scale up ESS buildout further. China is targeting 180GW of capacity by 2027, while South Korea plans to reach 2.22GW capacity by 2029. Australia has committed A$500mn ($337.75mn) to expanding local battery manufacturing. Other Asian nations are also picking up pace. Vietnam is targeting up to 16.3GW of ESS by 2030, while Malaysia launched its first 400MW auction this year. Governments are increasingly supporting integrated renewables and battery projects. India and the Philippines awarded such projects this year; Australia is auctioning dispatchable clean power contracts , and Malaysia intends to do this year, according to lawmakers. "In Asia-Pacific, while spot markets exist in some jurisdictions, most markets still lack mature price signals and ancillary service frameworks needed for merchant energy storage investment," nonprofit EnergyTag's Asia Pacific head Shailesh Telang told Argus . ESS deployment is still primarily backed by tenders, subsidies, regulated tariffs, or state-supported procurement, Telang noted. "Over time, market forces can take over, but today policy remains the primary driver," he said. Industry initiatives could further support growth. Regional advocacy group Fessia launched in September and will initially focus on smoothing policy for ESS deployment and bankability in Vietnam and the Philippines. Corporate standard-setter Greenhouse Gas Protocol is also consulting on switching from annual to hourly matching of clean power purchases . The requirement could spur demand for nighttime clean energy — and, in turn, batteries. But the clause is hotly debated and could feature leeway for smaller industries and emerging economies. Meanwhile, the South Korean government's first ESS central contract market auction in 2025 drew intense interest, selecting eight operators out of 51 proposals for 563MW of ESS capacity — largely concentrated on the mainland. A second auction round followed later. South Korea's ESS momentum, driven by its 2029 capacity target, aligns with domestic battery makers' pivot from electric vehicles. Top battery maker LG Energy Solution's (LGES) plans to produce lithium-iron-phosphate (LFP) ESS batteries domestically, citing the domestic energy ecosystem, starting with 1GWh. South Korean battery makers' ESS focus will likely intensify as the US EV market slows. Leading firms such as Samsung SDI, LGES, and SK On have all redirected resources to tap the ESS market, particularly in the US, given the data centre and renewable energy build-out. Their once EV-dedicated lines are increasingly repurposed to produce ESS as EV market uncertainty lingers. LFP reality sets in Chinese-dominated LFP chemistry continues to see surging adoption in South Korea , which has firmly stepped into the space and closed multiple LFP ESS supply deals in 2025. But China's dominant position in LFP still appears immovable, thanks partly to the scale of its domestic ESS and EV markets. The Chinese government is on track to more than double its new energy storage capacity to 180GW by the end of 2027 from 2024, it said in an action plan . Strong growth persists among Chinese domestic energy storage firms such as Eve Energy, Cornex, Envision, Great Power Energy and Technology, and Hithium, commented a Chinese battery recycler — though the sector remains overshadowed by industry giant CATL. Anticipation of robust ESS growth in China for 2026 — where Argus heard estimates between 30-100pc across multiple analysts and market participants — reflects varying degrees of optimism. Yet, one consensus stands out among market participants: ESS growth is confirmed and is dominating lithium market discussions near the end of 2025, supporting lithium prices and injecting fresh hope for market expansion. By Joseph Ho and Liang Lei Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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India’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.