07 April 2011 20:26 [Source: ICIS news]
MUMBAI (ICIS)--Global growth in key consumption sectors for caustic soda, at an average of 4% from 2010-2015, is likely to fuel demand, an industry official from Tricon Energy said on Thursday.
“Global net export of caustic soda in 2010 was 4.5 million dry metric tonne (dmt), driven by the alumina and pulp sectors," said Shi Weimin, Tricon Energy's director for Asia Pacific during a speech at the Vinyl India conference in Mumbai.
Consumption in the alumina sector accounts for 60% of the net export, followed by 25% for pulp and 15% for others, he added.
Global caustic demand in 2010 was 61.1m dmt, and the figure is set to rise this year, in line with the growth in the core-user segments, he said.
The main uses of caustic soda are in the manufacture of alumina, pulp and paper, soap and detergents and petroleum products as well as organic and inorganic chemical production.
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Caustic soda production in northeast
Rising crude oil, energy prices and transportation costs, coupled with tight supply and healthy demand, are likely to maintain caustic soda prices at the current level, according to Shi.
However, the additional capacity of 2m dmt in the last quarter of 2010 and the first quarter of 2011 in
Prices of caustic soda were last assessed by ICIS at $400-420/dmt (€280-294/dmt) FOB (free on board) NE (northeast) Asia on 1 April.
The two-day Vinyls India conference ends on 8 April.
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