The demand for caustic soda and chlorine is forecast to rise, Merchant Research & Consulting Ltd. says

26 Mar 2007 • by Natalie Aster

According to Merchant Research & Consulting Ltd., the global demand for caustic soda grows by an average of 3% a year, for chlorine – by an average of 2.2% a year.

The outlook for caustic soda seems bright. According to Merchant Research & Consulting Ltd., caustic soda production capacity grows by 1% a year (average capacity utilization rate - 87-90%). Demand for caustic soda increases by an average of 3% per year.

The market for caustic soda is rather well-developed and stable. Caustic soda plays an important role in many industries such as: pulp and paper, textiles, soaps and detergents, bleach manufacturing, food industry, petroleum products (oil drilling), aluminum, and the chemical processing industry.

Global demand for chlorine will grow by 2.2% a year to 55.5m mt by 2009. Merchant Research & Consulting Ltd. reports that the chlorine production capacity expands by 9% annually and reaches 62.2m mt. Merchant Research & Consulting Ltd argues that the demand for chlorine immediately mirrors the changes in economic situation, since the chlorine end-products are usually used for the manufacture of long-lasting products, for example, in construction (PVC tubes, frames and doors, polyurethane insulation).

PVC and polyurethane account for about 55% of global demand for chlorine. The use of chlorine for the manufacture of vinyl chloride derivatives has been growing at a steady pace of 3.8% over the recent years. The use of chlorine to make phosgene - which is used to produce isocyanates and polycarbonate - is gaining momentum.

Chlorine affects 55% of the European chemical industry.

"Caustic Soda Market Research", also features the following information:

• Economic situation on the global and regional markets for chlorine and caustic soda;
• Markets for chlorine and caustic soda in the CIS countries;
• Analysis of the consumption of chlorine and caustic soda in the CIS countries;

etc.

Marina Kulikova

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