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Caustic Soda
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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Abi will answer all Caustic Soda related
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Get up-to-date market and supplier info on Caustic Soda to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

manage-risk

Assess Supplier Risk based on key risk and compliance parameters

1

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

discover-supplier

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

1

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

assess-category-perforamnce

Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

source-market-indices

Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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COVID 19 impact on Caustic Soda market

  • Increase in demand for hand wash and soaps due to the Coronavirus outbreak to weigh on chlor-alkali demand.
  • The Coronavirus outbreak in Italy, Spain, UK, Germany and other European countries will lower manufacturing activities and demand for caustic soda will witness downtrend in the coming months
  • Countrywide lockdown in India will also impact caustic soda market. India is a major importer of caustic soda from Japan and the lockdown will lower consumption and imports in the country.

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Report Coverage

  • Key cost elements and Drivers
  • Caustic Soda Pricing
  • PESTLE Analysis – India
  • SWOT Analysis – DCM Shriram

Global Market Size

CAGR

3–4 percent

North America Market Size

16.4MMT

LATAM Market Size

4.4 MMT

Europe Market Size

12.4MMT

Table of contents

  1. Executive Summary-Caustic Soda
  2. Category Updates
  3. Supply Market Outlook
  4. Demand Market Outlook
  5. Industry BestPractices
  6. CATEGORY SUMMARY
  7. COVID-19 IMPACT

 

  1. Market Analysis
  2. Global Market Size:Caustic Soda
  3. Global Market Outlook
  4. Demand–Supply Trends and Forecast
  5. Key End-use Industries
  6. Trade Dynamics
  7. Regional Market Outlook (North America, EU, Asia, LA, and ME)
  8. Regional Market Snapshot
  9. Demand–Supply Trends and Forecast
  10. Trade Dynamics

 

  1. COVID-19 IMPACT
  2. COVID-19 IMPACT -SOURCING LOCATION WATCH
  3. COVID-19 IMPACT -SUPPLIER WATCH
  4. COVID-19 IMPACT -INDUSTRY WATCH

 

  1. Industry Analysis
  2. PortersAnalysis
  3. Industry Drivers and Constraints

 

  1. Market Monitoring Insights Report
  2. Cost and Pricing Analysis
  3. Cost Structure Analysis
  4. Price Forecast:Caustic Soda

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Global Market Outlook on Caustic Soda

  • The caustic soda market size in North America is the highest at 16.4 MMT, followed by Europe with market size of 12.4 MMT. Further, the caustic soda market size in Latin America (LATAM) is 4.4MMT.
  • The top caustic soda manufacturers in the world include GACL, Aditya Birla Group, and DCM Shriram.
  • The global demand for caustic soda was 81.9 MMT in 2019 and the capacity was 88.5 MMT in the same year, indicating oversupply.
  • According to industry experts, the caustic soda market will grow at 4-5% CAGR by 2024.
  • The major caustic soda markets include Asia, which holds 55% of the total revenue share, followed by North America (18%), and Europe (15%).

Regional Market Outlook on Caustic Soda

  • The global caustic soda demand will grow at 3–4% CAGR during 2020–2024
  • Asia will remain a hub for caustic soda manufacturers owing to an anticipated increase in the consumption of paper, food & beverages, personal care products, and synthetic fibers.
  • The per-capita consumption of caustic soda is not as saturated in Asia as it is in the Western markets.
  • The European Union (EU) and North America have low buyer power while Asia has medium buyer power. 
  • In the US and Europe, contract transactions are preferred while in Asia, spot transactions are used more often. 
  • China is the leading pulp and paper manufacturer across the globe given its large forest reserves, which occupy 22.5% of its land area.
  • The Asian country is the ground zero for chemical processing, making up for a bigger slice of all the chemicals manufactured worldwide. 
  • Furthermore, China leads the pack in textile production and export globally owing to abundant labor, low-cost production, adequate raw materials, and barriers.
  • The caustic soda prices are determined according to the demand. 

Insights

Multiple Sourcing:

  • Buyers can engage in multiple sourcing from domestic as well as international suppliers to lower the risk of price volatility and secure supplies.
  • Japan is the biggest importer of caustic soda to India, as such, sourcing from Japan can be considered owing to established trade routes. However, logistics costs and import duties have to be looked upon while engaging with multiple sources.

Increasing capacities in India:

  • Grasim Industries (part of Aditya Birla Group) has increased caustic soda capacity by 67 percent to 356,000 tons/year
  • Nalco and GACL are also expected to bring 267,000 tons/year plant in Dahej by 2020 which will improve domestic supply

Demand growth in India

  • The growth of the textile industry in India was expected to reach $230 billion by 2020 thus setting high hopes for caustic soda suppliers.
  • Growth in the automobile industry in India will improve the demand for aluminum and, in turn, support the caustic soda demand from alumina smelting

Market Segmentation

The caustic soda market can be segmented based on the type of caustic soda and the end-use application. Caustic soda procurement is critical to understand the caustic soda market.

Caustic soda is usually produced as a caustic liquid. Caustic soda is one of the types of chemicals. Caustic soda lye is caustic 50% liquid. It is a product of Chlor-alkali. Other products of Chlor-alkali include hydrochloric acid, caustic soda lye, sodium hypochlorite, caustic soda flakes, hydrogen, and chlorine.

Based on Type: Caustic soda market can be segmented into lye and flakes. Caustic soda lye is a solution of caustic soda and water. The percentage of caustic soda in lye usually ranges between 32-50 percent based on application.

Caustic soda lye has various applications including use in organic chemicals, paper and pulp production, aluminum refineries, food additives production, use in inorganic chemicals, and textile processing. 

Caustic soda flakes applications include viscose fiber, use inorganic chemicals such as phosphites, pulp production, aluminum refineries, production of paper, detergents, and soaps among others. 

Caustic soda flakes are anhydrous caustic soda, with about 99-99.9 percent caustic soda.

Based on Application:

  • During 2017, the textile industry was the biggest consumer of caustic soda followed by alumina smelting and pulp and paper

  • During 2017, caustic soda consumption from organic and inorganic chemical formulations formed about 21 percent of the overall demand

  • Other applications of caustic soda include soaps and detergent industry, water treatment and dyes and inks among others

Growth Drivers and Constraints

Drivers

Rising Demand for Alumina

  • Caustic soda is utilized to process raw bauxite ore into white powder alumina which is further smelted to produce aluminum. 

  • The International Aluminum Institute has revealed that the overall alumina production hit 131,910 MT in 2019. 

  • Key consumers of alumina include automobiles, building and construction, and packaging. 

  • Increasing demand for alumina in these end-use industries will thus bode well for the global caustic soda market.

High Demand from the Chemical Industry

  • Investment in membrane technology is as high as $100 Mn for a 100,000 DMT/year plant, which can have an ROI period of 8–10 years, and hence is a major entry barrier for new players.

  • Indian manufacturers face fierce competition from imported caustic soda, which is cheaper compared to the domestic produce. This is due to high input and logistics costs within the country

High cost of investment

  • Investment in membrane technology is as high as $100 million for a 100,000 DMT/year plant, which can have an ROI period of 8–10 years, and hence is a major entry barrier for new players
  • Indian manufacturers face fierce competition from imported caustic soda, which is cheaper compared to the domestic produce. This is due to high input and logistics costs within the country
  • Indian manufacturers face fierce competition from imported caustic soda, which is cheaper compared to domestic produce. This is due to high input and logistics costs within the country

Co-product Dynamics 

  • The market growth for caustic soda is highly dependent on the chlorine market dynamics
  • In H1 2018, chlorine prices hovered around the negative range in India, where the producer had to pay the buyer for chlorine
  • The chlorine market is expected to grow with growth in the vinyl segment with the demand for PVC in India

Stringent regulations

  • A constraint of the caustic soda market is the stringent regulations which can limit the expansion of the industry. 

High Corrosive Nature 

  • Caustic soda reacts with tin, zinc, and copper, and their alloys and produces hydrogen, leading to the formation of explosive gas mixtures.

  • Moreover, the reaction of caustic soda with ammonium and amine compounds releases toxic substances.

Why Buy This Report

With this caustic soda procurement and research report, you get: 

  • Market share analyses at regional and country level 

  • Market data for 2019, 2020, till 2024

  • Market trends (drivers, restraints, opportunities, challenges, recommendations, and investment opportunities)

  • Strategic recommendations for the new market entrants

  • Strategic recommendations in key business segments based on the market estimations

  • Caustic soda price and supply chain trends outlining the latest technological advancements

  • Competitive scenario sizing up the major common trends

  • Profiles of caustic soda suppliers with detailed financials, strategies, and latest developments

 

Caustic Soda Market Frequently Asked Questions

  1. What will be the possible market valuation of the caustic soda market?
  2. As of 2018, the global caustic soda market was valued at approximately $36 billion and is expected to reach $55.8 billion by 2026.

 

  1. How are the major players contributing to the caustic soda market in India?
  2. The domestic demand for caustic soda is increasing, and Indian producers are expanding capacities and operating existing capacities at higher rates to cater to these demands. Grasim Industries, a part of Aditya Birla Group, has increased caustic soda capacity by 67 percent to 356,000 tons per year. Nalco and GACL will further improve the domestic supply by contributing around 267,000 tons per year by 2020.

 

  1. What are the factors expected to drive the demand growth of the caustic soda market in India?
  2. One of the major factors, as pointed out from Beroe’s caustic soda market report, that will drive the growth of the market, is the expansion of the textile industry in India valued at approximately $230 billion. In addition, the growth of automobile industry/ car sales in India will also drive the demand for caustic soda for alumina smelting.

 

  1. Are there any constraints to growth that the caustic soda market may be facing?
  2. Firstly, there is a high cost of investment associated with the caustic soda market. The investment required for membrane technology can go as high as $100 million for a 100,000 DMT/ year plant that can have an ROI period of 8-10 years. Secondly, caustic soda market analysis shows that Indian producers have to face tough competition from imported caustic soda, which is cheaper than the domestic produce owing to the high input and logistics costs within the country.

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