Caustic soda, also known as sodium
hydroxide or lye, is a non-flammable, odorless white solid. It is highly
corrosive and is available in different forms like granules, pellets, and
flakes. The process which is used to form chlorine, caustic soda, and soda ash
is known as chlor-alkali. Caustic soda being a co-product of chlorine, the
supply of caustic soda in the market depends significantly on the production of
chlorine. Caustic soda has numerous applications, foremost of which is as a
chemical base, where it acts as the vital raw material in the production of
many organic chemicals.
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Caustic soda is a common ingredient
used in chemical industries in North America, Europe, Asia Pacific, and the
Rest of the World (RoW). It is used in various industries like pulp and paper,
textiles, drinking water, soaps, and detergents. Other miscellaneous
applications of caustic soda are in synthesis of pharmaceutical compounds,
neutralizing acids, and in recycling of rubber.
Some of the driving forces for the
caustic soda market are high demand in the end-user market, high production
capacity available in all market segments, and also the strong growth in
developing regions. Market segments with high capacity plants can scale-up their
production in accordance with the increasing demand for caustic soda in the
market. Caustic soda is currently experiencing significant price hikes due to
the high demand to supply ratio, which could further lead to an enhanced
revenue growth of major companies.
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