CAUSTIC SODA MARKET: TRENDS, EXPORTS, AND REGIONAL DYNAMICS


 Caustic Soda Market trends

As of the close of May, the Chinese Caustic Soda market witnessed a notable surge in its average price, reaching approximately 4300 yuan per ton for 99% flake soda. This surge, indicating a 9.3% increase, is a result of multiple factors contributing to the counterattack growth observed in the domestic chemical industry market in 2022.

April 2022

In April 2022, China recorded a substantial increase in the export volume of caustic soda, totaling 253,100 tons. The majority of these exports consisted of liquid caustic soda, amounting to 207,100 tons, with solid caustic soda contributing 46,000 tons. The cumulative caustic soda exports from January to April 2022 saw a remarkable year-on-year surge of 155%. Notably, the export of liquid caustic soda experienced an impressive growth of 237%, while solid caustic soda exports increased by 24%.

The prevailing market conditions indicate a tightening of caustic soda supplies in certain regions, coupled with robust downstream demand. However, downstream profits for caustic soda are under pressure. Consequently, the short-term outlook anticipates that the caustic soda price will remain relatively stable, with limited declines.

May 2022

The domestic caustic soda market in 2022 displayed positive momentum, with the average market price of 99% flake soda reaching around 4300 yuan per ton by the end of May, showcasing a notable increase of 9.32%. This upward trend in prices can be attributed to factors such as reduced upstream operation and output, increased demand from downstream enterprises, and rising production costs due to international market volatility, including hikes in crude oil prices.

Analyzing the regional distribution of caustic soda production capacity reveals that North China, Northwest China, and East China collectively account for around 79% of the country’s total capacity. Shandong stands out as the province with the largest caustic soda production capacity, while Inner Mongolia has emerged as the second-largest region following the shift of the PVC industry to the western region.

Despite a year-on-year decrease in national caustic soda output in April 2021, the overall trend indicates a consistent increase in production capacity from 2016 to 2021. The prevailing model of supplementing chlorine with caustic soda has led to high-load operation but poor profits, resulting in a slower expansion of caustic soda production capacity in China.

In summary

Propelled by initiatives in new urbanization, China’s demand for caustic soda has experienced rapid growth, reaching 37.54 million tons in 2021. Expectations for 2022 suggest a further increase to 38.67 million tons. In response to domestic sales pressure, China has heightened its enthusiasm for caustic soda exports, evident in the significant surge in export volumes witnessed early in 2022.

while certain regions experience tight supplies in the caustic soda market, supported by robust export markets, downstream demand and the overall market environment remain optimistic. However, the pressure on downstream costs may limit substantial price increases. The short-term outlook suggests that the caustic soda price will likely remain stable or experience slight declines.

Hossein Moshiri

WA +989124311007

info@chemkraft.ir

Source: https://chemkraft.ir/en/caustic-soda-market-trends-2/

Comments

Post a Comment

Popular posts from this blog

IRAN’S CAUSTIC SODA EXPORTS TO IRAQ: NAVIGATING CHALLENGES AND SEIZING OPPORTUNITIES

Image
  Hossein Moshiri IRAN'S CAUSTIC SODA EXPORTS TO IRAQ Introduction: Iraq’s Caustic Soda imports: Iran’s caustic soda industry holds a strategic position in the global chemical market, and neighboring Iraq emerges as a crucial trade partner. This essay explores the dynamics of Iran’s caustic soda exports to Iraq, highlighting the challenges faced and the potential opportunities that can be leveraged to strengthen this bilateral trade relationship. **1.  Historical Trade Relations: Iran and Iraq share a long history of economic and trade relations. Geographical proximity, cultural ties, and mutual economic interests have fostered a robust exchange of goods and services. In recent years, Iran has emerged as a key supplier of various products to Iraq, and caustic soda is one such essential commodity with diverse applications across industries. **2.  Growing Industrial Demand in Iraq: Iraq’s industrial landscape is undergoing significant expansion and modernization, driven by ...
Read more

A JOURNEY THROUGH TIME: THE HISTORY OF CAUSTIC SODA AND ITS EVOLUTION Hossein MoshiriJanuary 12, 2024 Introduction: Caustic Soda Evolution: The history of caustic soda, also known as sodium hydroxide (NaOH), spans centuries and reflects the remarkable advancements in chemistry and industry. From ancient alchemy to modern chemical engineering, the journey of caustic soda unveils a narrative of discovery, innovation, and the contributions of prominent figures who shaped its evolution. This article explores the stages of caustic soda’s history, highlighting key milestones and individuals who played pivotal roles in its development. 1. Ancient Alchemy and Discovery: The roots of caustic soda can be traced back to ancient times when alchemists sought to unravel the mysteries of matter. Alchemy, a precursor to modern chemistry, involved the exploration of various substances and their properties. During this era, the concept of alkali substances, including those with caustic properties, began to emerge. 2. Alkali Discovery in the Middle Ages: In the Middle Ages, the knowledge of alkalis expanded, and the production of alkali substances became more systematic. One of the primary sources of alkali was potash, derived from the ashes of burnt plants. Alchemists and early chemists started to recognize the diverse applications of alkalis, laying the foundation for the systematic study of their properties. 3. Early Chemical Investigations: The 18th century witnessed significant progress in chemical investigations. Scientists like Carl Wilhelm Scheele and Joseph Priestley made notable contributions to the understanding of alkalis and their properties. Scheele, in particular, conducted experiments that elucidated the nature of caustic soda and its distinct characteristics. Caustic Soda Evolution 4. Birth of the Chlor-Alkali Industry: The 19th century marked a transformative period in the history of caustic soda with the birth of the chlor-alkali industry. The industrial production of caustic soda became feasible through the development of the chlor-alkali process. This process involves the electrolysis of brine (sodium chloride solution), leading to the simultaneous production of chlorine, hydrogen, and caustic soda. This breakthrough laid the groundwork for large-scale caustic soda manufacturing. See also Unveiling the Caustic Soda Industry: Electrolysis Plants vs. Flaking Units 5. Leblanc Process and Solvay Process: Two influential processes in the 19th century further propelled the production of caustic soda. The Leblanc process, developed by Nicolas Leblanc, involved the conversion of common salt into sodium carbonate, a precursor to caustic soda. The Solvay process, pioneered by Ernest Solvay, offered a more efficient and environmentally friendly method for producing sodium carbonate, further contributing to caustic soda production. 6. Role of Pioneering Chemists: Prominent chemists throughout history have significantly contributed to the understanding and advancement of caustic soda. Sir Humphry Davy’s electrolysis experiments were instrumental in revealing the elemental nature of sodium and furthering the understanding of sodium hydroxide. The contributions of chemists like Friedrich Wöhler, who synthesized sodium metal and investigated alkali metals, and Augustin Jean Fresnel, who studied the physical properties of caustic soda, expanded the scientific knowledge surrounding this essential chemical. 7. 20th Century Advancements: The 20th century witnessed substantial advancements in the caustic soda industry, driven by technological innovations and the increasing demand for chemicals. Improved manufacturing processes, such as membrane cell technology, enhanced the efficiency and sustainability of caustic soda production. 8. Global Expansion and Industrial Applications: As industries diversified and expanded globally, the demand for caustic soda surged. The chemical found widespread applications in various sectors, including pulp and paper, textiles, soap and detergents, metallurgy, and water treatment. Its versatility in both chemical processes and product formulations solidified its status as a cornerstone of industrial chemistry. 9. Environmental Considerations and Sustainable Practices: In recent decades, the caustic soda industry has witnessed a growing emphasis on sustainability and environmental responsibility. Research and innovation focus on developing greener processes, minimizing waste, and optimizing energy efficiency. The industry’s commitment to addressing environmental concerns reflects the evolution of societal values and the integration of responsible practices. See also Exploring Opportunities for Iranian Caustic Soda Exports to Kyrgyzstan Caustic Soda Evolution Conclusion: The history of caustic soda is a fascinating journey through the annals of chemistry and industry. From the alchemical pursuits of ancient times to the systematic discoveries of the Middle Ages, the transformative developments of the 19th century, and the technological advancements of the 20th and 21st centuries, caustic soda’s evolution mirrors the progress of scientific inquiry and human ingenuity. Prominent figures such as Leblanc, Solvay, Scheele, and Davy have left indelible marks on the caustic soda narrative, contributing to its understanding and industrial applications. As the chemical industry continues to evolve, with a heightened focus on sustainability and responsible practices, the journey of caustic soda remains an enduring testament to the interplay between science, industry, and the quest for knowledge across the ages. Hossein Moshiri WA +989124311007 Source: https://chemkraft.ir/en/caustic-soda-evolution/ Report content on this page

Image
  A JOURNEY THROUGH TIME: THE HISTORY OF CAUSTIC SODA AND ITS EVOLUTION Hossein Moshiri January 12, 2024 Introduction: Caustic Soda Evolution: The history of caustic soda, also known as sodium hydroxide (NaOH), spans centuries and reflects the remarkable advancements in chemistry and industry. From ancient alchemy to modern chemical engineering, the journey of caustic soda unveils a narrative of discovery, innovation, and the contributions of prominent figures who shaped its evolution. This article explores the stages of caustic soda’s history, highlighting key milestones and individuals who played pivotal roles in its development. 1. Ancient Alchemy and Discovery: The roots of caustic soda can be traced back to ancient times when alchemists sought to unravel the mysteries of matter. Alchemy, a precursor to modern chemistry, involved the exploration of various substances and their properties. During this era, the concept of alkali substances, including those with caustic properties...
Read more

CAUSTIC SODA DEMAND AND IRAN’S ROLE: OPPORTUNITIES AND CHALLENGES

Image
  Introduction: Possible caustic soda shortage in late 2020 decade: The global caustic soda market is at risk of facing a demand-supply imbalance in the latter half of this decade, as indicated by trends analyzed by Hira Saeed, a chlor-alkali market expert at Tecnon OrbiChem. The potential for a shortfall hinges on the severity of the anticipated global economic downturn outlined by the International Monetary Fund. In 2022, challenges within the chlor-alkali sector are underscored by the elevated prices of caustic soda in Europe, driven by increases in natural gas and electricity costs. High export prices out of Europe in Q2 led to a scarcity of concluded deals, but recent adjustments by European exporters, reducing prices for competitiveness, have begun to improve the situation. However, persistent high freight costs and delays pose ongoing obstacles to successful export strategies. The graph illustrating caustic soda capacity and forecasted consumption reveals a potential imbala...
Read more