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 which is available in different concentration. Generally it comes under Chlor Alkali industry where the electricity costs account for about 40 – 50% of operating costs. It is deliquescent in nature & wherever strong base requirement is present in industries, this chemical is used mostly.
Chlorine & Caustic Soda are the 2 main commodity inorganic chemicals in chlor Alkali industry, followed by Soda Ash, Caustic Potash etc.
According to Alkali Manufacturers’ association of India, there is an existing “Demand gap” which is expected to grow in the future. Further this fact is supported from 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% betweeen 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 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 Asia-pacific region being a potential market. China is the key player in this segment & expansions are key growth strategy 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 is known for best quality caustic soda bulk sourcing center.
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 make-up chemical
- It is also used as the initial treatment in de inking secondary fibres
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 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 Bayer process and is employed to produce an array of organic and inorganic chemicals. Further it forms one of the major application of Lye for around 17% of the world usage, next to Paper industries.