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.
US-Brazil trade tension weighs on specialised tankers
US-Brazil trade tension weighs on specialised tankers
London, 8 August (Argus) — US import tariffs on Brazilian goods and the threat of reciprocal measures have curbed trade between the nations, cutting cargo numbers available to specialised tankers. But this could drive up trade on other routes. Washington's 50pc import tariff on Brazilian goods, effective from 6 August, takes US tariffs on Brazilian ethanol, a common product flow requiring specialised tankers, to 52.5pc . A tariff this high would undoubtedly cut trading volumes available to specialised tankers, in the near term at least. As the US is one of Brazil's primary ethanol export destinations, sellers might ramp up exports to other markets to plug a the gap. The EU is a leading importer of Brazilian ethanol, and the finalisation of the EU-Mercosur trade agreement could substantially boost this trade. The current terms of this agreement would provide maximum quotas high enough to entirely cover the amount of Brazilian ethanol exports to the bloc, and slash EU import tariffs by around two-thirds. This could support much higher exports of ethanol from Brazil to the EU on specialised tankers, as long as Brazilian domestic demand does not absorb the supply. It is unlikely that US exports would jump to meet EU demand, considering the EU has made no commitments to lowering market access barriers for US ethanol as part of its trade deal. Brazil's exports of tallow, a biofuels feedstock, to the US are also likely to drop, prompting exporters to look for new markets, either domestic or in Europe . Some chartering activity could be sustained between Brazil and the US, as biofuels producers in the latter country could be able to claim a "duty drawback". This would refund up to 99pc of the duties, taxes and fees paid during the import process, if they use Brazilian tallow to produce HVO and SAF for export to common destination markets including Canada, the Amsterdam-Rotterdam-Antwerp (ARA) hub, or the UK. With falling Brazil-US trade, it is likely that shipowners will focus on positioning vessels in US Gulf coast market or instead compete for long-haul cargoes of ethanol or soybean oil from Latin America to west coast India and east Asia. In the build-up to Trump's executive order, Brazilian president Luiz Inacio Lula da Silva said his administration would consider import tariffs on US goods under Brazil's economic reciprocity law. The US exports caustic soda, glycols and methanol to Brazil on specialised Stainless Steel J19s, Handysizes and Medium Range tankers. The US exports far higher amounts of products that require specialised tankers to Brazil, than Brazil does to the US. Of methanol, ethanol, aromatics, glycols, caustic soda, sulphuric acid, vegetable oils and biofuels, the US exported 4.23mn t to Brazil in 2024 while Brazil exported 651,000t to the US, Kpler data show. This means any reciprocal measures from Brazil would probably have more of an effect on the regional specialised tanker market. Brazil is the leading importer of US caustic soda but Brazil's imports from the US declined by more than 16pc in June from a year earlier, according to GTT, as market participants sought to avoid facing tariffs mid-shipment. Cargo volumes heading to Latin America in the US Gulf coast specialised tanker spot market have dropped even further in recent weeks. Many expected Brazil to begin importing more US ethanol this year to supply a new fuel mandate that increases ethanol blending in gasoline to 30pc from 27pc. Importing US ethanol could become unviable if the Lula government decides to implement import tariffs. It is unclear if Brazil will implement reciprocal tariffs. The most recent finance ministry response plan included credit concessions, an increase in government purchases but did not mention reciprocal measures. By Leonard Fisher-Matthews Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Dow to close German cracker, other assets by 4Q 2027
Dow to close German cracker, other assets by 4Q 2027
London, 7 July (Argus) — US chemicals firm Dow said today it will permanently close its ethylene cracker in Bohlen, Germany, and chlor-alkali and vinyl assets in nearby Schkopau, in the fourth quarter of 2027. It will close its siloxanes plant in Barry, UK, in mid-2026. "The shutdown of upstream assets in Europe will right-size regional capacity, reduce merchant sale exposure, and remove higher-cost, energy-intensive portions of Dow's portfolio in the region," the company said. The assets were included in Dow's strategic review in April. It said at the time the sites were being considered for idling or closure. The Bohlen cracker has a nameplate capacity of 540,000 t/yr of ethylene and a propylene capacity of 285,000 t/yr. It also has a butadiene extraction unit with a nameplate capacity of 105,000 t/yr. At Schkopau, Dow has a membrane cell chlor-alkali capacity of 250,000 t/yr and 740,000 t/yr of ethylene dichloride capacity. The site previously had around 330,000 t/yr of capacity for chloride monomer (VCM) production, with two lines operating at the site, but Dow closed the larger of the two lines to reduce capacity to roughly 110,000 t/yr earlier in 2024. Dow's polyethylene assets in Schkopau — a 210,000 t/yr LLD-HDPE unit and 108,000 t/yr LDPE unit — were not part of the review and will continue to operate. Dow said closure of the upstream assets would "improve our ability to supply profitable derivative demand and optimise margins". The PE units can utilise an ethylene pipeline that runs between them and Dow's storage and import infrastructure in Stade, Germany. The extended lead-time of the closures will allow Dow to wind down existing contracts and give customers time to attempt to source alternative material. Customers include the former Dow polypropylene plant at Schkopau, which it sold to Brazil-based petrochemical company Braskem in 2011 and that receives feedstock propylene from the Boehlen cracker. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Indonesian Chandra Asri to build chlor-alkali, EDC unit
Indonesian Chandra Asri to build chlor-alkali, EDC unit
Singapore, 18 June (Argus) — Indonesian petrochemicals and energy firm Chandra Asri has signed an agreement with sovereign wealth funds Danantara and the Indonesia Investment Authority to jointly develop a chlor-alkali ethylene dichloride (CA-EDC) plant in Cilegon city, Banten. Danantara and INA will jointly invest about $800mn in the project. The plant aims to boost Indonesia's production of caustic soda and EDC to strengthen industrial downstream self-sufficiency and reduce import dependency of inputs for industries such as water treatment, soap and detergent manufacturing, alumina refining and nickel processing. In a first phase, Chandra Asri will build a plant with a production capacity of 400,000 t/yr of solid caustic soda (equivalent to 827,000 t/yr in liquid form) and 500,000 t/yr of EDC. A potential second phase could expand production and introduce chlorine derivatives, depending on the outcome of ongoing feasibility studies. "The chemical sector underpins key value chains — from manufacturing to energy transition — especially in nickel processing and alumina refining," Danantara chief investment officer Pandu Sjahrir said. "This investment strengthens national resilience by reducing import dependence on essential products like caustic soda and EDC," he added. The joint venture is expected to generate EDC export earnings of up to 5 trillion rupiah/yr ($306mn) and trim Indonesia's import bill for caustic soda by Rp4.9 trillion/yr. By Haridas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Ti market assesses fallout of UKTMP chlorine gas leak
Ti market assesses fallout of UKTMP chlorine gas leak
London, 28 May (Argus) — The titanium market is assessing the fallout of a chlorine gas leak at Kazakh titanium sponge producer Ust-Kamenogorsk Titanium and Magnesium Plant (UKTMP) on 19 May, with the company anticipating no significant impact to production but other sources cautioning the possibility of outages during repairs. "An industrial incident occurred during a scheduled preventive cleaning of equipment at one of the production sites, as a result of a short-term deviation in the operation of the gas exhaust system," UKTMP told Argus . The leak occurred during maintenance to repair blocked pipes on one of the plant's chlorinators. One of the emitted gases was chlorine, which is used in the Kroll process to convert titanium dioxide into titanium tetrachloride. Titanium tetrachloride is subsequently reduced with magnesium to produce titanium sponge. Additional cleaning was promptly carried out and UKTMP switched to a reserve chlorinator per standard procedure, it told Argus . But one market source questioned the condition of UKTMP's reserve equipment, owing to a lack of investment in recent years. "The incident did not affect the production process as a whole, especially the production of titanium sponge. Today, the plant is operating normally, without any change to the production schedule," UKTMP said. Mixed or limited information received by market participants has led to varied reactions. Some sources have claimed that the situation is more critical than UKTMP has said, underpinned in part by videos released online of green chlorine gas over Ust-Kamenogorsk in eastern Kazakhstan, although Argus could not verify these videos. It could take more than six months to repair damaged equipment, during which time sponge production will be affected, some sources claimed, but UKTMP denied such an outage. US titanium producer ATI confirmed to Argus that its supply of titanium sponge is secure, but ATI could not provide insight on UKTMP's operations. France's Aubert & Duval — a consumer of aerospace-grade 6Al 4V ingot, and titanium sponge through its EcoTitanium subsidiary — declined to comment. One Atlantic alloy producer that Argus understands procures 6Al 4V ingot from UKTMP said it does not see any risk to grade 5 ingot supply as a result of the leak. UKTMP produced 19,000t of titanium sponge last year, according to the company, accounting for 21pc of aerospace-approved sponge supply, or 16pc, including Russia. By Samuel Wood Send comments and request more information at feedback@argusmedia.com Copyright © 2025. 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.
Blog - 12/06/25