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Briefing on the caustic soda and its market situation in China

Briefing on the caustic soda and its market situation in China2019.08.01

Caustic soda with the formula of NaOH, is an inorganic compound and a highly caustic base and alkali. It is a co-product of chlorine production and can be used in a variety of manufacturing processes. 


Caustic soda is used to manufacture many everyday products including:
1. extracting alumina from naturally occurring minerals. 
2. being used in chemical industry, manufacturing rayon, spandex, epoxy resins, paints, glass, ceramics and making dyes.
3. making paper
4. producing sodium hypochlorite, a water disinfectant.


China's caustic soda downstream demand mainly came from alumina, chemical industry and papermaking, which accounted for a large proportion with the share of 34%, 16% and 14% respectively.



From 2013 to 2017, China's caustic soda output showed a rising path in general despite of a slight drop to 30.3 million tons in 2015. The output was 33.652 million tons in 2017, increasing by 2.5% from a year earlier.



During these years, caustic soda consumption quantity has also shown a similar trend. It reached 32.143 million tons in 2017, increasing by 3.9% from 2016.



From the perspective of China's caustic soda region distribution, Shandong Province accounted for a large proportion with the share of 28.59%.




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