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Home  »  Newsletters » Volume-i-2024  »  The Caustic Conundrum: Will India take centre stage?

The global chlor-alkali industry forms a key base for the chemicals industry. Caustic soda is manufactured through the electrolysis of sodium chloride solution (brine). India emerges as a prominent player amidst a framework of global demand dynamics. Serving as a cornerstone across diverse sectors such as textiles, chemicals, and PVC production, caustic soda holds pivotal significance. India’s ascent is marked by robust demand growth powered by factors like alumina import substitution and domestic capacity expansions, positioning the nation as a substantial global supplier. Meanwhile, China, a longstanding powerhouse in the market, grapples with challenges like slowdowns in alumina production, leading to diminished export volumes and underutilized capacities. Looking ahead, India anticipates a surplus production scenario driven by strategic initiatives like ‘Make in India’ and major projects. With global demand on the rise and China facing hurdles, India aims to strengthen its position as a key caustic soda supplier, poised to capitalize on emerging opportunities in the international market.

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Indian Caustic Soda Market – Future Demand and Supply Gap (KT)

Source: AGR Analysis


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The Caustic Conundrum: Will India take the centerstage?