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.
Viewpoint: US housing to stymie chlor-vinyl in 1H 2026
Viewpoint: US housing to stymie chlor-vinyl in 1H 2026
Houston, 22 December (Argus) — An anemic US housing market is expected to continue restraining domestic demand for polyvinyl chloride (PVC) and chlor-alkali during the first half of 2026, prompting US producers to push more PVC into the export market. US Federal Reserve policymakers have cut their target interest rate three times since September, but market participants do not expect lower borrowing rates to significantly boost demand for housing — a major PVC derivative market — until the peak of construction season next summer at the earliest. To mitigate further price erosion and excess inventories, producers are expected to increase export sales, especially to India. PVC producers expect the Fed will continue to cut interest rates in 2026 to help stimulate the domestic housing market, which was listless this year on rising prices and elevated mortgage rates. But producers may be disappointed, as Fed policy makers have penciled in just one quarter-point rate cut for next year. Lower Fed target rates can influence borrowing costs for mortgages, business loans, and other expenditures in the homebuilding sector. Interest rates for a traditional 30-year fixed mortgage have remained above 6pc since September 2022, contributing to housing affordability issues that stretch back to 2021, according to data from Federal Reserve banks in St Louis and Atlanta. Housing starts have been weak in the past three years as mortgage rates surged. Starts were at a 1.31mn unit annual pace in August, down from about a 1.6mn rate in 2021-2022. US home builders have little incentive to develop new units, which in turn could support higher home prices in 2026 as homebuilding continues to be outpaced by a growing population. Meanwhile, weak housing demand and construction activity has left US PVC producers to manage an oversupplied domestic market, weighing on spot export prices and likely maintaining headwinds through the first quarter of 2026. Spot export prices have been rangebound from $550-595/metric tonne (t) fas Houston since mid-October, as US exporters vie with competitive Chinese volumes into India — the largest global importer of PVC. Exports from the US to India are anticipated to rebound in 2026 as much of the regulatory headwinds that crimped shipments this year are largely resolved. India earlier this year required foreign exporters to have their plants inspected and certified by the Bureau of Indian Standards (BIS) by June, which was eventually delayed to the end of the year. India in early November dropped those requirements, but confusion around the shifting BIS deadlines led US producers to limit shipments to India. Additionally, India approved preliminary anti-dumping rates on US and Chinese PVC exports but failed to fully implement the penalties — effectively eradicating the last trade barrier into the country. US PVC exports to India in January-September this year fell by 68pc from the same nine-month period last year, according to US Census Bureau trade data compiled by Global Trade Tracker (GTT), largely because of various regulations and evolving trade policies. Exporters, though, are expected to reclaim lost market share in India in 2026, especially as the US housing market is anticipated to remain weak until the third quarter. Increased exports should help draw down inventories early next year, after suppliers grappled with excess inventory and multi-year price lows. The export market may become more important to US producers if domestic demand remains weak. This is due to OxyChem's expanded Battleground plant in La Porte, Texas, coming on line by the end of 2026 or early 2027 and US chlor-alkali producer Olin focusing expansion plans on the PVC market. Caustic soda prices A bearish PVC market to start 2026 is expected to lend price support to caustic soda prices for fully integrated producers. Caustic soda is co-produced with chlorine, a critical feedstock for PVC manufacturing, and producers can increase caustic soda prices to preserve electrochemical unit (ECU) margins during periods of bearish PVC and chlorine market conditions. An ECU is comprised by 1t of chlorine and 1.1 dry metric tonnes (dmt) of caustic soda. Domestic producers and distributors raised caustic soda prices in monthly contract negotiations for much of 2025, helping to offset incrementally lower chlorine settlements, despite building caustic soda inventories during the second half of the year. Domestic caustic soda inventories are poised to end the year at elevated levels following an estimated 5-10pc cut in US consumption and largely steady production for much of 2025. But to sustain a pricing strategy that maintains value in caustic soda, suppliers with deep-water access are expected to boost exports in 2026, primarily to Europe and Brazil, or peel back operating rates. Further caustic soda price support next year is anticipated to be drawn from rising natural gas prices for electricity generation, which comprises about 70pc of total ECU variable costs in the US Gulf coast region, Argus estimates. Average natural gas costs into electricity are forecast to climb by nearly 8pc next year to $4.20/mmBtu, according to the US Energy Information Administration's Short-Term Energy Outlook . By Connor Hyde and Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Westlake sees rebounding PVC demand in 2026
Westlake sees rebounding PVC demand in 2026
Houston, 30 October (Argus) — Texas-based housing and construction product manufacturer Westlake expects global polyvinyl chloride (PVC) demand and prices to rebound in 2026, as lower interest rates in the US and capacity cuts in Europe could fuel stronger market conditions. The US Federal Reserve cut its target interest rate by 50 basis points between its September and October meetings, raising hopes for moderately stronger housing demand next year. Housing is a critical derivative market for PVC producers. Additionally, capacity reductions in Europe will help balance global PVC supplies, which remained persistently oversupplied in recent years because of new capacity in China. Poor housing demand this year contributed to nominally lower sales revenue in Westlake's housing and infrastructure segment during the third quarter. Revenue slumped by 1pc to $1.09bn compared with the same three-month period last year. Strong municipal demand for PVC pipes for water treatment systems supported a 1pc increase in the company's infrastructure productions segment sales revenue to $163mn, which was countered by a 1pc decrease in housing product sales at $928mn during the third quarter. Data for US construction spending, housing permits issued, and housing starts is delayed by the ongoing partial partial federal government shutdown, which impacts the US Census Bureau's ability to publish monthly statistics. The latest data from August showed an 11pc yearly drop in privately-owned housing permits issued and a 6pc drop in housing starts. The latest Census Bureau construction spending data, released for July , showed a 5.3pc year-to-year drop in private residential spending and a 10pc drop in commercial spending. Sales from Westlake's performance and essential materials (PEM) segment — which includes olefins, vinyl chemicals, polyetheylene, and epoxies — also declined during the third quarter, falling by 13pc to $1.74bn. Westlake said dampened demand in Europe and Asia limited PEM sales during the quarter. Planned turnarounds and plant outages contributed to the year-over-year sales decrease. Overall, Westlake reported a $782mn loss during the third quarter, down from a $108mn profit in the third quarter of 2024. Total revenue slipped by 9pc to $2.84bn for the quarter. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US government shutdown delays construction data
US government shutdown delays construction data
Houston, 1 October (Argus) — The US government's shutdown that started today will delay the release of monthly domestic construction spending data closely watched by a number of commodity markets, including polyvinyl chloride (PVC), polyurethane, asphalt, steel and non-ferrous metals. The partial government shutdown started today and marks the first in six years after talks among lawmakers and the White House to reach a last-minute funding agreement failed. The US Census Bureau, which was expected to release its monthly residential and commercial construction data today, anticipates 7pc of its 11,100 staff will be exempted from furloughs during the shutdown, but "most activities will cease", according to the bureau's updated shutdown plan. The bureau's website today posted a message saying information would not be updated due to the lapse of funding and inquiries not answered until after funding has resumed. The monthly report is a critical dataset for domestic PVC market participants and others because it provides insight into construction activities that consume large volumes of certain commodities, especially in the residential market. Domestic PVC and polyurethane demand have remained under pressure this year on a weaker housing market. Participants are closely monitoring construction spending, housing starts and permits for a fundamental shift to stimulate demand, especially after the US Federal Reserve cut its target interest rate and announced a series of cuts during the fourth quarter. The building blocks of polyurethanes, such as isocyanates including polymeric MDI (PMDI), go into insulation, roofing applications and carpet underlay. It is unclear which other government agencies will delay releases or maintain operations. The US Bureau of Labor Statistics, which publishes key data on employment, prices and inflation, plans to "completely cease operations" if funding lapses, according to a shutdown plan dated 26 September. The US Department of Agriculture today added it will not update information on its website during the shutdown. By Catherine Rabe and Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Ineos to close European PO, PG production
Ineos to close European PO, PG production
London, 18 September (Argus) — UK-based Ineos will indefinitely shut down propylene oxide (PO) and propylene glycol (PG) production in Europe even if chlorine supply resumes to its idled 210,000 t/yr chlorohydrin-based PO production plant in Germany. The firm has notified clients, in a letter dated 8 September, it would cease production of PO and PG with immediate effect. Argus understands Ineos has also withdrawn from industry association Cefic's PO and PG working group from 2026. Ineos' PO production plant at Cologne supplies its 120,000 t/yr PG production unit nearby. Both plants have been offline since a fire on 12 July caused a power outage at Germany's Chempark Dormagen. That in turn prompted German chemical firm Covestro on 15 July to declare force majeure on a range of products, including chlorine. Covestro provides chlorine to Ineos' Cologne PO production plant, which then had to shut down, and Ineos declared force majeure on its PG production on 18 July. Ineos did not declare force majeure on its PO production, which is mainly for captive use. Repairs are underway at Chempark Dormagen but the damage was extensive and full operations are unlikely to resume before the first quarter of 2026. But Ineos has told clients it will not resume PO or PG production. The decision may predate the fire in July, as some downstream users of Ineos' PO have been seeking alternative sources since at least the middle of the second quarter. Ineos has this week declined to comment. By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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