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.
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.
US chlor-alkali producers insulated from energy rally
US chlor-alkali producers insulated from energy rally
Houston, 11 March (Argus) — US energy independence should insulate domestic chlor-alkali manufacturers from surging feedstock global natural gas costs as the US war in Iran enters its second week and roils markets. US natural gas prices remain insulated from a global supply crunch even as the war with Iran fuels volatility in oil futures and higher European natural gas prices. Natural gas comprises about 70pc of electrochemical unit (ECU) production costs in the US. An ECU is 1t of chlorine and 1.1 dry metric tonnes (dmt) of caustic soda. US benchmark Henry Hub natural gas prices have climbed by 4pc after the initial US-Israel joint attacks on Iran on 28 February to settle on Tuesday at $3.07/mmBtu. But US natural gas futures are unlikely to see near-term volatility unless the conflict is prolonged, analysts said. "In the short-term, the war would have little to no impact on Henry Hub prices," Baker & O'Brien consultant Kent Bayazitoglu told Argus . US LNG exporters have little ability to increase volume into the global market because they already operate near capacity. Less-reactive natural gas prices at Henry Hub should widen ECU margins for US producers as caustic soda spot exports trade at $400/dmt fob and higher and polyvinyl chloride prices rebound. A stable US Gulf coast ECU cost floor could allow producers to be more competitive in the global spot market as other origins face the risk of higher energy prices. European benchmark TTF natural gas prices climbed by as much as 70pc from pre-war levels to $18.94/mmBtu on 9 March before easing to $15.90/mmBtu yesterday — still 43pc higher than pre-war prices. US Gulf coast spot caustic soda prices were uncompetitive to many destinations outside Latin America before the war in the Mideast Gulf and rallying freight costs following the attacks have further increased delivered prices from the US and other origins. Rising caustic soda prices, though, are not expected to deter import demand as supply options become increasingly limited. Northeast Asia and Middle East suppliers are virtually locked out of the Mediterranean market with shippers steering clear of the Red Sea, and planned maintenance in the US and Europe should limit spot availability throughout the Atlantic basin through the second quarter. Mediterranean importers, who have been on the sidelines since January with plentiful inventory, potentially face steeper spot price increases for the next round of buying because of higher freight costs and expected supply limitations in the Atlantic. By Connor Hyde Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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.
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