Increasing use of caustic soda in different industries will upsurge the market growth during the forecast period
According to a new report published by Reports Monitor titled, “Caustic Soda Market by Application: Global Opportunity Analysis and Industry Forecast, 2017–2025,” the caustic soda Market was valued at XX million in 2016, and is projected to reach at XX million by 2025, growing at a CAGR of XX% from 2017 to 2025.
Market Overview In last couple of years, there has been immense increase in demand for caustic soda owing to its wide usage in variety of industries. Caustic soda is highly corrosive and reactive in nature and act as strong alkali. It readily dissolves in water forming aqueous solution and possess ability to cause severe chemical burns. Caustic soda is majorly utilized in aluminium production. It serves as essential organic and inorganic chemical in various commercial sectors such as paper & pulp, textile, soap & detergent, water treatment, petroleum products, bleach manufacturing and many others. Near about 55.5 million tons of caustic soda is manufactured yearly for industrial needs.
Expanding industrialization in emerging market and rising need for caustic soda in various manufacturing and downstream processes propels the market growth of caustic soda. Furthermore, increasing demand from end-user segment, increased production potential and rising demand in alumina extraction pertaining to growing automotive industry drives further growth of the market. However, energy intensive manufacturing process and rising environmental concerns regarding usage of caustic soda may act as obstacle constraining caustic soda market growth. In addition, being by-product of chlorine production process, lowered manufacturing rate of chlorine might affect production capacity of caustic soda which might hinder market growth. Extending plant volume and emerging joint ventures provides lucrative opportunities to key market players to expand their business.
Asia-Pacific caustic soda market is majorly enforced by growing industrial sector across the region. Demand for caustic soda is surging in manufacturing plants such as aluminium, PVC, petroleum products, paper, bleach, textile and casting blocks, pellets & flakes. Besides China take majority of share in caustic soda production in Asia-Pacific where is India’s increasing GDP will act in favour of market growth. Competitive Scenario
There is huge opportunity for caustic soda market to flourish in coming years. Many nascent players can infiltrate the market by adopting different strategies such as merger and acquisition. Major Key players operating in the market are Dow Chemical, OxyChem, Axiall, Olin Corporation, Formosa Plastics Corporation, Tosoh, Inovyn, AkzoNobel, Covestro and Shin-Etsu Chemical.
In February 2018, Formosa Plastics Corporation which has joined the wave of petrochemical producers announced that US price for caustic soda has increased by $85/st. four other caustic soda producers OxyChem, Olin and Shintech each said that they would be raising their US prices by $85/st on the other hand Westlake Chemical announced a smaller increase of $40/st in the US.
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