Industrial pattern of caustic soda

March 03, 2023

Caustic Soda 2

Domestic trade pattern

The main production areas and main sales areas of domestic Caustic Soda are not completely consistent, and need to be adjusted through trade. As shown in Figure 8, Shandong in North China and four provinces in Northwest China - Shaanxi, Inner Mongolia and Ningxia are the main net outflow areas of caustic soda, while Shanxi and Hebei in North China and Guangdong and Guizhou in South China are the main net inflow areas. It is worth noting that Shandong Province is also the largest production and marketing region in China, and the supply exceeds the demand, which is the net outflow place. The overall development of caustic soda downstream in the western region is weak. Most of the local liquid caustic soda needs to be processed into solid caustic soda for long-distance export, so it is also mainly transferred out.

foreign trade

In terms of foreign trade, China has always been a net exporter of caustic soda. From 2011 to 2014, the export volume of caustic soda in China was basically stable at about 2 million tons; In 2015, the domestic supply-side reform and the tightening of environmental protection led to a significant decline in total supply and a corresponding significant contraction in exports; 2016-2018 is the boom cycle of domestic caustic soda. The continuous rise of domestic trade prices has led export enterprises to pay more attention to the domestic market, and the export volume has decreased year by year, reaching 1.1474 million tons by 2019; From 2020 to 2021, exports will be active again. Compared with exports, China's import of caustic soda is significantly less, usually less than 50000 tons/year. The import volume in 2021 will be 54700 tons, which has been relatively high in history.

With the steady rise of domestic production and the continuous contraction of exports, the ratio of exports to output has also decreased from 8.76% in 2011 to less than 4% in 2021.

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