Growth Trends in Caustic Soda Market

Growth Trends in Caustic Soda Market

Chlor Alkali Sector

Caustic Soda (Sodium Hydroxide) also known as “Lye” as a trade name, is a high alkali material that is available in different concentration. Generally, it comes under the Chlor Alkali industry where the electricity costs account for about 40 – 50% of operating costs. It is deliquescent in nature & wherever a strong base requirement is present in industries, this chemical is used mostly.

Chlorine & Caustic Soda are the 2 main commodity inorganic chemicals in the chlor Alkali industry, followed by Soda Ash, Caustic Potash, etc.

Growth Estimates

According to the Alkali Manufacturers’ Association of India, there is an existing “Demand gap” which is expected to grow in the future. Further, this fact is supported by the data of import by India, which is approx 5 lakh MT (33% higher than 2014).

The market is expected to witness a CAGR of 6.78% between 2014 & 2019 in terms of value & in turn is anticipated to generate a global market value of 38,484 million USD by 2019. The driving force includes the growing demand from the chemical industry & increased usage in the food, pulp & paper industries.

The Biggest Market: Asia-Pacific

Various mergers & acquisitions, expansions in caustic soda industry & growing chemical industry are the prime reasons for the Asia-pacific region being a potential market. China is the key player in this segment & expansions are key growth strategies being adopted by top players in the industry.

In parallel with the expansion strategy, some of the companies are engaged in enhancing the existing technology for less energy consumption & orienting their process to be more environment friendly. Further many industries in Asia-Pacific are known for the best quality caustic soda suppliers in India.

Top Growing consumption sectors

1. Paper Industry

  • Caustic soda is also used in pulp and paper industry during the cooking process and oxygen delignification process
  • In some Kraft mills, caustic soda is also used as a makeup chemical
  • It is also used as the initial treatment in de-inking secondary fiber

2. Textile Industry

  • Caustic soda is used in the scouring process, mercerization process, as well as dyeing process
  • Caustic soda also serves as a pH regulator and controls the pH of the dyeing bath, which is required to be precise and constantly maintained throughout the process.

3. Alumina Industry

Caustic soda helps to extract alumina from bauxite ore via the Bayer process and is employed to produce an array of organic and inorganic chemicals. Further, it forms one of the major applications of Lye for around 17% of the world usage, next to Paper industries.

Leave a Reply

Your email address will not be published. Required fields are marked *