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2021 Caustic Soda Market Analysis

2021 Caustic Soda Market Analysis

Latest data on global caustic soda market situation (product export) as well as inside import positions. Olin will resume its regular supply of caustic soda in April 2021. Earlier, due to equipment breakdowns in Freeport (Texas, America), the issue was affixed.

Olin stops caustic soda production for repairs

Latest data on global caustic soda market situation (product export) as well as inside import positions. Olin will resume its regular supply of caustic soda in April 2021. Earlier, due to equipment breakdowns in Freeport (Texas, America), the issue was affixed. The force majeure option turned out as a result of the worst frosts in the last 10 years in February 2021. The temperature negatively affected the production of the main raw materials: caustic, chlorine, VCM, and ethylene dichloride. At the same time, the holding has 7 large factories that produce caustic (caustic soda): 1. in Louisiana, 2. in Texas, 3. in Alabama, 4. in Tennessee, 5. in New York, 6. in Canada and 7. In California. Along with these factories, other caustic producers are also experiencing difficulties in view of the pandemic. For example, FormosaPlastics, WestlakeChemical and Covestro. These enterprises are still in an unfavorable situation, although, according to their reports, they are gradually increasing the turnover of caustic soda production and its export abroad. But at the same time, 60% of the product goes to the domestic needs of the country. Up to this point, Olin also said that the systematic supply of chlorine and caustic soda from Macintosh (Alabama, America) is unstable and does not go according to production schedule. An unplanned equipment failure has occurred. The plant's capacities stopped. Note that the annual production of caustic soda is 789 thousand tons (according to the statistics of 2020), and 705 thousand tons of chlorine. On the duration of the repair - the representatives do not provide information.

Korean company Lotte FineChemical expands caustic production line

In turn, Lotte FineChemical began to repair the facilities, which was appointed a year ago. Finances were allocated at the beginning of the reporting period and the repair of the caustic production line in Ulsan was launched. Note that Lotte FineChemical is a subsidiary of the South Korean petrochemical giant LotteChemical. Press representatives from the company said that the renovation started on March 16. There are three main lines for the production of caustic soda. Renovation sites: Ulsan (located in South Korea). A full-fledged launch of lines with a capacity of 360 thousand tons of caustic soda is planned from April 16 + - a week (on April 23, everything should be in full readiness). At the same time, production was not completely stopped - only capacities were reduced, to half. Thus, it turns out that so far one line of caustic is completely restored, the other two are working to full extent. And as soon as the first one is ready, alternation begins. Earlier a year ago, there was a similar situation. Then Lotte FineChemical was stopped on the first line of work (March 19) for the production of caustic. And full-fledged work resumed only on April 27. Note that the February production rate for sodium hydroxide (abbreviated as caustic) was 98 thousand tons, compared to 113 thousand tons in January. At the same time, the total production indicator amounted to about 211 thousand tons, which is 4.5 percent less than in 2020.

Japanese caustic soda maker halted capacity at 80%

New! Update from 06/09/2021 Tokuyama Corporation has Japanese roots. One of the most important manufacturers and miners of petrochemical products. Starting from 03.06.2021 the holding reduced the load on production facilities at the plant. As a result, the production of caustic soda in Tokuyama province, which belongs to Yamaguchi Prefecture, has been significantly reduced. What happened is the result of equipment breakdown on the production line. The company has made an official announcement for the news portal Polymerupdate. As it became known on June 9, the enterprise operates at only 20 percent of the entire functionality (this is 8.3 thousand tons per month at such launch speeds). The capacity of the Japanese plant is 498 thousand tons. caustic soda for 365 days / year. Taking into account 80% of downtime during the month, product output will drop by 33.2 thousand tons. / per month. Note that in 2020, systematic maintenance work was carried out for the caustic soda production. The Russian caustic soda market in the first quarter of 2021 fell by 0.7% compared to 2020. The three-month figure was fixed at around 329.4 thousand tons. against 327.1 t. caustic a year earlier.

News update from 06/28/2021

American company Formosa Plastics
Is going to increase prices for caustic soda. The price bar will increase by 120 USD per 1000 kg of product. The company officially announced its decision by sending a mailing list to customers.

"This increase in cost is effective immediately. Or under the terms of the contact, if signed," - indicated in the written mailing.

06/21 Formosa Plastics removed force majeure that was hampering the supply of chlor-alkali product and normalized shipments from the Texas facility. Unforeseen circumstances arose at the plant with a capacity of 907 tons. chlorine, as well as 1 million tons of caustic / per year - 05/19/2021. When torrential rains cause floods in parts of Texas.

At the same time, Formosa Plastics is going in a week, on July 6, 2021, to restore the production of chlorine in full, as well as caustic soda. In addition to these two products, the company produces 625 thousand tons. PVC / for 12 months Note that the renovation work began on June 4.

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