Commodity Chemical Update—Chlor Alkali (July 2026)

Research evidence excerpt

Commodity Chemical Update—Chlor Alkali (July 2026)

Equity Research

Industry Update — July 6, 2026

Chemicals

Commodity Chemical Update—Chlor Alkali

(July 2026)

ECU Margins Increased in June, Caustic Soda & Chlorine

Prices Were Flat

Our Call Abigail J. Eberts

While ECU margins increased thanks to PVC values, domestic caustic soda prices were flat Equity Analyst | Wells Fargo Securities, LLC

Abigail.Eberts@wellsfargo.com | 332-877-5728

M/M and export prices for caustic soda and PVC decreased vs. May. Chlorine prices are

Gabe Hajdeexpected to maintain a flat to downward trajectory.

Equity Analyst | Wells Fargo Securities, LLC

Gabe.Hajde@wellsfargo.com | 216-470-8960

ECU Margins Increased M/M in June: ECU margins increased 10% M/M in June after

increasing 21% M/M in May and increasing 26% M/M in April. Overall, ECU margins

increased 94% Q/Q in 2Q26 (+28% Y/Y) after falling 14% Q/Q in 1Q26. Margins increased

in June as costs remained relatively stable (slightly higher natural gas costs were offset

by decreases in other manufacturing cost inputs), with support from chlorine values from

PVC and stable caustic soda prices.

Caustic Soda Prices Were Flat M/M in June: CMA reported North American caustic soda

prices held steady M/M in June after increasing 2% M/M in May and increasing 5% M/

M in April. The market remained balanced in June as domestic production increased and

imports resumed. Domestic demand was stable M/M as energy, mining, and consumer

goods remained supportive, with growth in water treatment offsetting pressure from

alumina, PO, and epichlorohydrin.

Chlorine Prices Were Flat M/M in June: CMA reported North American chlorine prices

were flat M/M in June after falling 0.2% M/M in May and falling 2.4% M/M in April. CMA