North America
In North America, the industry for Caustic Soda had an increasing trend towards the end of June. Caustic Soda prices in the United States fell in April, owing to weak downstream consumption. Furthermore, strong end-user want in May and June influenced the market movements of Caustic Soda in the United States. Furthermore, a lack of stocks was caused by a force majeure at main Chlor alkali-producing chemical factories such as Olin and Westlake in the US system. The high inflation rate in the United States, along with the ongoing conflict between Russia and Ukraine, resulted in a positive environment for Caustic Soda in June
Asia-Pacific
In the second quarter of 2022, the Caustic Soda industry demonstrated an overall rising trend. Caustic Soda prices rose in the Asian market as a result of the reappearance of COVID-19 cases in China, which impeded manufacturing. The price fluctuations of Caustic Soda in the Asian area were clearly influenced by the limited availability of stocks with firms in the face of high demand. Furthermore, the price trend for Caustic Soda fell in June due to limited inquiries and excess inventory availability, despite a steady increase in production operations. The product’s demand was lower than projected. Meanwhile, excessive inflation prompted Chinese and Indian currencies to depreciate against the US dollar, causing a downward impact on Caustic Soda prices in Asia.
Europe
Caustic Soda reported market-based perceptions in the European industry for the second quarter of 2022. Caustic Soda prices increased in Germany at the end of June due to strong downstream demand. The high rate of inflation generated by the war put increasing pressure on the price of Caustic Soda throughout the European region. Furthermore, limited local market demand led to a drop in Caustic Soda prices in April. Furthermore, the weakening of the European currency (Euro) versus the US dollar pushed down the price of Caustic Soda. Prices continued to rise in Q2 2022 due to minor fluctuations in Europe’s supply and demand fundamentals. In June, the cost of caustic soda powder in the European economy was estimated to be 715/MT FOB Hamburg.
About Caustic Soda:
Caustic soda is a powerful alkali with the chemical formula NaOH. Caustic soda is a widely utilized chemical that is employed as a raw resource or as an auxiliary ingredient in a variety of industries. Caustic soda comes in two varieties: lye and solid. Solid Caustic soda can indeed be produced at various purity levels as flakes or granules. Caustic soda is used in fabric production, alumina petrochemical plants, soap, and detergent industrial production, the paper, and pulp sector, and as an alternative in the production of a wide range of industrial substances such as dyes, colorants, agrochemicals, and a range of inorganic compounds such as sulfites, phosphites, and so on.
