Market and product

Caustic soda demand remains weak in Brazil, in line with the country’s troubled economy, market sources said.

Brazil consumed 1.031m dry metric tonnes (dmt) of liquid caustic soda in the first six months of 2016, down by 13% from the 1.187m dmt consumed in the same period in 2015, according to data released this week by Abiclor, the country’s association of chlor-alkali industries.

Brazil’s domestic production of liquid caustic soda through June 2016 was 642,118 dmt, 6% lower than the 684,667 dmt produced in the same period in 2015, Abiclor said.

Liquid caustic soda imports through June 2016 were 395,762 dmt, down by 23% from 511,707 dmt imported during the same period in 2015. The US is the major exporter to Brazil with 373,602 dmt through June, followed by Peru with 16,837 dmt, and Argentina with 5,314 dmt.

Major markets consuming liquid caustic soda in Brazil in 2016 are paper and cellulose with 164,781 dmt, chemical/petrochemical with 110,555 dmt, soaps and detergents with 49,877 dmt, aluminium with 29,850 dmt, and metallurgy with 22,744 dmt. Caustic soda consumption is down by 1% from 2015 in the alumina sector, down by 37% in the metallurgy sector, and down by 7% in the paper/cellulose sector.

Caustic soda producers in Brazil are Braskem, Solvay Indupa and Carbocloro.