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.
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 But these have now largely been replaced by imports from Asia-Pacific.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.
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.
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