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Global Scenario Globally the chlor-alkali industry is driven by the demand-supply of chlorine unlike in India and therefore globally, caustic soda is considered as a byproduct. Demand for chlorine is higher than that of caustic and many a times a part of caustic produced in the process is wasted. Global consumption pattern of caustic soda also differs from that of domestic. Globally chemicals account for 40% of the total consumption followed by paper & pulp, etc. Global consumption pattern Chemicals 40% Paper 18% Alumina 8% Soaps & detergents 7% Manmade fibres 7% Others 20% The major manufacturers of caustic soda/ chlorine are located in USA, China and Saudi Arabia. USA is the largest consumer and is also a net importer whereas the China and Saudi Arabia are the net exporters. Exports from China affect the domestic industry in a major way. This makes it necessary to understand the demand-supply situation of caustic soda in China. The consumption of caustic soda is expected to decline in 1999 because of suspension of production in small paper mills and textile mills. These mills were the major consumers of caustic soda in the recent past. The rapid increase in the caustic soda out put in the region will make it hard for China to achieve any major increase in exports. According to the estimates, in 1998 the domestic consumption of caustic soda in China is expected to be 4.7mn ton against the production of 5.3mn ton. Exports are expected to be around 0.3mn ton. This will result in an inventory 0.4mn ton. To this if the inventory of 0.2mn ton carried over from 1997 is added then the total inventory pileup will be higher in 1998. Japan is the only country that has completely done away with the use of mercury or diaphragm cell for manufacture of caustic soda in as early as 1988. All the plants based on mercury process were either shut down or converted into membrane cell. Some diaphragm cells were also converted into membrane ones. World production of caustic is estimated to be around 40mn tpa. India accounts for about 4% of the world production. Other sector reports Previous chapter Next chapter

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