Caustic Soda Market - The U.S. and China in Control of Global Caustic Soda Exports

Basic Chemicals September 14, 2015
Author: Olga Minchina
Account Manager

caustic soda market

Source: The Dow Chemical Company

Known as sodium hydroxide (NaOH), caustic soda is an inorganic compound widely used in various industries due to its strong alkaline properties. As one of the essential elements in manufacturing aluminum, paper, detergents and soaps, caustic soda is the go-to compound in the chemical industry as a basic auxiliary.

Caustic soda is also used in the production of chocolate, cocoa and beverages and its bleaching properties make it useful in the textile industry for dyeing and whitening denim as well. Caustic soda is, additionally, an effective cleaning and disinfection agent, and is, therefore, often used for purifying water.

The Dow Chemical Co., a US corporation with headquarters in Michigan, is one of the global leaders on the caustic soda market. Combining century-old experience with global manufacturing facilities and a well-established supply chain, Dow ensures the high quality of its product and timely delivery across the globe. Advanced production technologies and contemporary ISO 9001:2000 certified factories guarantee that Dow's caustic soda meets rigid international requirements.

In 2014, the U.S. and China were the main global suppliers of caustic soda with a combined share of 60.3% of global exports. However, the fastest growing suppliers from 2007 to 2014 were Egypt (+19.3% per year) and Finland (+76.2% per year). Despite being one of the largest global producers of caustic soda, India did not export much of its production, meaning that it was either domestically consumed, or put in storage.

China dominates in global caustic soda production and held the second spot in the global trade. In 2014, China exported 6.2% of its total caustic soda output. Of this amount, 36% was supplied to Australia, where Chinese caustic soda held 17% share of total Australia imports.

In 2014, Australia (23.5%), Brazil (12.6%), the U.S. (7.3%), the Netherlands (6.2%) and Finland (4.2%) were the leading destinations of caustic soda imports, together making up 53.8% of global imports in physical terms. And while the share of Australia increased significantly, the share of Jamaica illustrated negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

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Source: World: Caustic Soda - Market Report. Analysis and Forecast to 2020