What drives chlorine prices in China's chlor-alkali market?

What drives chlorine prices in China's chlor-alkali market?
Chlorine is a co-product of caustic soda in the chlor-alkali process, so its price is heavily influenced by the demand-supply balance of both products. In China, chlorine demand is closely tied to downstream sectors like PVC, epichlorohydrin, and chlorinated solvents. When caustic soda prices are strong, producers may run plants harder, increasing chlorine supply and pressuring its price. Conversely, weak caustic soda margins can lead to production cuts, tightening chlorine availability. Energy costs are also critical, as electrolysis is highly electricity-intensive, with the global chlor-alkali industry consuming about 4% of world power. Any shift in China's energy pricing or environmental restrictions on chlor-alkali plants can quickly move chlorine prices.