Content Overview: In the first half of 2022, the domestic caustic soda market as a whole showed a slight upward trend. The overall production of the caustic soda plant is normal, and the output remains relatively stable, except for the local areas affected by the epidemic or the regular shutdown and maintenance arranged by the enterprise, the production load of other enterprises is sufficient, and the market supply is sufficient. The new production capacity of downstream alumina enterprises has been released one after another, driving the increase in demand for caustic soda in local areas and achieving a breakthrough in prices. In 2022, the average price of the domestic liquid soda market will be 3543.8 yuan/ton, a year-on-year increase of 56.4%.
Keywords: liquid soda, liquid sodium hydroxide, liquid caustic soda
1. Overview of liquid soda
Liquid alkali refers to a liquid substance that has alkaline properties, usually an aqueous solution. The alkalinity of liquid alkali comes from the alkaline substances contained in it, mainly compounds such as alkali metal hydroxides or alkali metal carbonates. Liquid alkali has a wide range of applications in the chemical industry, such as as as cleaning agents, removing stains, adjusting pH values, etc. Generally speaking, liquid alkali is mainly sodium hydroxide (NaOH) or potassium hydroxide (KOH) solution, and the pH value of liquid alkali is usually above 12, which is extremely corrosive. In addition, pure liquid caustic soda is called liquid soda, which is a colorless and transparent liquid. Liquid alkali can be classified according to its chemical composition as follows:
2. Sorting out relevant policies in the liquid soda industry
Driven by supply-side reforms, caustic soda production restrictions have increased. Since 2007, the state has issued access conditions for the chlor-alkali industry, making it difficult for enterprises with small production scale to enter the market, and new production capacity is limited. Subsequently, in 2016 and 2019, caustic soda was listed as an overcapacity industry and a restricted industry, and capacity growth continued to be limited. In 2021, affected by the dual control policy on energy consumption, some provinces, such as Gansu and Inner Mongolia, issued management measures for high-energy-consuming industries to further restrict the production of caustic soda.
3. Analysis of the current situation of the liquid alkali industry
Due to the imbalance between supply and demand of caustic soda in various regions of the world and the existence of price differences, international trade in caustic soda is relatively active. In 2022, the obstruction of maritime transportation affected by the new crown pneumonia epidemic has eased, and the rhythm of inter-regional caustic soda trade circulation has accelerated, with global caustic soda trade accounting for more than 15% of the output, mainly liquid soda products, and solid soda products have relatively little circulation due to relatively low production. According to the data, the market production and demand of the global liquid soda industry in 2022 will be 72.234 million tons and 70.597 million tons, respectively, a year-on-year increase of 11.3% and 15.4%. In terms of sub-regions, the global demand for liquid soda is mainly concentrated in the Asia-Pacific region, the European Union and North America. In 2022, the demand for liquid soda in the Asia-Pacific region accounted for 64.08% of the total global demand, of which the demand in the Asia-Pacific region was mainly concentrated in China, the demand for liquid soda in the European Union accounted for about 14.39% of the global demand, and the growth points of demand were mainly concentrated in the fields of chemicals, pulp, soap industry, etc., and the proportion in North America in 2022 was 15.12%, mainly concentrated in the United States, and the main downstream were chemicals, pulp, papermaking, etc.
Note: This article is excerpted from the industry analysis article "Analysis of the Market Competition Pattern and Trend of China's Liquid Soda Industry in 2023: Industry Concentration Will Be Further Improved, and the Supply and Demand Pattern is Expected to Continue to Improve [Figure]" released by Zhiyan Consulting.
Based on the authoritative data released by the National Bureau of Statistics, government agencies and industry associations, the "Report on Market Competitiveness Analysis and Investment Development Potential of China's Liquid Soda Industry" released by Zhiyan Consulting combines the collection and analysis of global data such as in-depth research data, expert feedback data, and internal operation data to improve the efficiency of customers' business decision-making. This report makes an in-depth investigation and research on the current situation and market of China's liquid soda industry, and makes a prudent judgment on the future development prospects and trends according to the development trajectory of the industry, which provides a crucial decision-making reference for investors to find new market investment opportunities and enter the investment layout of the liquid soda industry.
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