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Current Market Scenario of


Caustic Soda in India

By: Fibre2Fashion.com

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Current Market Scenario of Caustic Soda in India


By: Fibre2Fashion.com
Introduction:
The Chlor-alkali segment in the inorganic chemical industry includes Caustic soda,
Soda ash and liquid Chlorine. The size of Global Chlor-alkali industry is $70 billion
(2012), and that of the Indian Chlor-Alkali Industry is 4% of the global Caustic Soda
industry (2012). Globally the installed capacity of Caustic soda is 78.6 mn tons, of
which the Indian industry constitutes for 4 % (Refer Fig.-1, Table-1). Domestic
capacity utilization of the Caustic soda industry was 80% in the financial year 2011 as
compared to 74% of the global Caustic Soda industry.
Global Caustic Soda Capacity

(% installed capacity) (Total 78.6 mn tons)


Source: Indian chemical industry XIIth five year plan 2012-17

Fig. 1- Global Caustic Soda Capacity


Indian Caustic Soda Capacity
Region

Capacity
Distribution (%)

No. of Plants

East

Total
Capacity
MMTPA*
0.4

12

West

1.76

54

16

North

0.4

13

South

0.68

21

*Total Capacity as on 1st April, 2011


Source: AMAI

Table 1- Indian Caustic Soda Capacity

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Global Caustic Soda Consumption

Source: Indian chemical industry XIIth five year plan 2012-17

Fig. 2- Global Caustic Soda consumption


Indian Caustic Soda Consumption

Source: Indian chemical industry XIIth five year plan 2012-17

Fig. 3- Indian Caustic Soda Consumption


Industrial Use of Caustic Soda
I.
II.
III.
IV.

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Textiles Chemical processing


of cotton and dyeing of
synthetic fibres
Manufacture of pulp and paper
Aluminium Production
Oil refining

V.
VI.
VII.
VIII.
IX.
X.

Soaps and Detergents


Metal Processing
Water Treatment
Mining
Glass making
Chemical Industry

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Major Indian Manufacturers of Caustic Soda and Capacity


Major Players in the Indian Caustic Soda Sector

1.

Grasim

31-Mar-11

Capacity
(Units in
MTPA)
258000

2.

Aditya Birla Chemicals*

16-Apr-11

220000

3.

Aditya Birla Nuvo

31-Mar-11

91250

S. No.

Particulars

As On

Aditya Birla Group

569250

4.

Gujarat Alkalies & Chemicals

31-Mar-11

429000

5.

DCM Shriram Consolidated (DSCL)

31-Mar-11

274670

6.

Reliance Industries

31-Mar-11

168150

7.

Sree Rayalseema Alkalies

31-Mar-11

123950

8.

Gujarat Flurochemicals

31-Mar-11

117000

9.

Chemplast Sanmar

31-Mar-11

113850

10.

Meghmani Finechem

31-Mar-11

110000

11.

Punjab Alkalies

31-Mar-10

99000

12.

Lords Chloro

31-Mar-08

84150

13.

Mawana Sugars

31-Mar-11

82500

14.

Travancore-Cochin Chemicals

31-Mar-10

57750

15.

Tamil Nadu Petro Products

31-Mar-11

56100

16.

Jayshree Chem.

31-Mar-11

53200

17.

Chemfab Alkalies

31-Mar-11

42000

* Includes 1.15 lakh ton facility of Kanoria Chemicals acquired in May 2011
Source: derivatives.capitaline.com

Table 2- Major Indian Manufacturers of Caustic Soda and Capacity


Indian Caustic Soda Production

Source: Indian chemical industry XIIth five year plan 2012-17

Fig. 4- Indian Caustic Soda Production

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Indian Caustic Soda Import-Export Statistics

Source: Indian chemical industry XIIth five year plan 2012-17

Fig. 5- Indian Caustic Soda Import-Export Statistics


Caustic Soda Price Trend- India
Indian Caustic soda prices have firmed up gradually in the past two years (Refer
Fig.6). Cost of salt, which is a major raw material of Caustic soda, has remained
stable but power costs increased, which forced the manufacturers to increase the
price of Caustic Soda. Moreover, anti-dumping duty on Caustic Soda imports
contributed to higher profit margins for the domestic manufacturers.

Source: capitalmarket.com, fibre2fashion desk

Fig. 6- Caustic Soda Price Trend- India

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Impact of Antidumping Duty on Indian Caustic Soda Industry:


Dumping is an act of charging lower price for a good in a foreign market than a
manufacturer charges for the same good in his home country; or in other words selling
goods in a foreign country below their normal value. Dumping hampers the ability of
the domestic producers to keep competitive pricing in the domestic market. An antidumping duty may be levied on such low-priced-imports by the importing country, in
order to protect the domestic industry. Government of India imposed an antidumping
duty on Caustic Soda, imports through several government notifications from time to
time (Refer Table- 3, 4 & 5 for details). Domestic suppliers gained higher profit margins
from this move as imports got costlier. The move triggered a price rise of Caustic Soda
and its end-products.
The amount of Anti-dumping duty levied on a particular supplier or a country is
calculated as the difference between, the amount specified in the amount column of
Table-3, 4 and 5 and the landed value of such imported goods (i.e. Amount-Landed
value) in same currency and same unit of measurement. This anti-dumping duty is
payable in Indian currency.
Table-3: Anti- dumping duty on Caustic soda (Lye and Solid/Flakes) imports as on
3rd October, 2011
(Effective up to and inclusive of 25th December, 2013 unless revoked or amended
earlier)

Sl.
No

Country
of origin

Country
of export

Producer

Exporter

Amount (USD/DMT)

TriconEnergy
Limited, USA
through
M/sHanwhaCorpo
ration

Not applicable

Korea
RP

Korea RP

M/s Hanwha
Chemical
Corporation

Korea
RP

Korea RP

Any combination other than at Sl.


No.1 above

366

Korea
RP

Any
country
other than
Korea RP

Any

366

Any
country
other
than
Korea
RP

Korea RP

Any

366

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Table-4: Anti- dumping duty on Caustic soda imports (from any


Producer/Exporter of the mentioned country of origin and export) as on 23rd
August, 2011.
(Effective for five years from 23rd August, 2011 unless revoked or amended earlier)
Subject countries in the following table refers to Thailand, Chinese Taipei and Norway.

Sl. No.

Country of origin

Country of export

Amount/ Unit
(USD/ DMT)

Thailand

Thailand

379

Thailand

Any country other than


Thailand

379

Any country other than


subject countries

Thailand

379

Taiwan (Chinese Taipei)

Taiwan (Chinese Taipei)

361

Taiwan (Chinese Taipei)

Any country other than


Chinese Taipei

361

Any country other than


subject countries

Taiwan (Chinese Taipei)

361

Norway

Norway

379

Norway

Any country other


than Norway

379

Any country other than


subject countries

Norway

379

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Table-5: Anti- dumping duty on Caustic soda (any grade) imports as on 13th
September, 2006.
(Effective up to 1st September, 2012 unless revoked or amended earlier)

S.No.

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Country of
origin

Saudi Arabia

Saudi Arabia

Saudi Arabia

Country of
export

Producer

Exporter

Amount
(USD/ MT)

Saudi Arabia

M/s Saudi
Petrochemical
Company
(SADAF)

M/s Saudi
Basic
Industries
Corporation
(SABIC)

258.97

M/s Saudi
Petrochemical
Company
(SADAF)

M/s Shell
Trading (M.E.)
Pvt. Ltd.
(STME) and
M/s Am gulf
Polymers and
Chemicals
Ltd.
(AMGULF)

243.9

Saudi Arabia

M/s Saudi
Petrochemical
Company
(SADAF)

M/s Shell
Trading (M.E.)
Pvt. Ltd.
(STME) and
M/s TRICON
International
Ltd. (TRICON)

250.41

Any producer
other than M/s
Saudi
Petrochemical
Company
(SADAF)

Any Exporter

258.97

Saudi Arabia

Saudi Arabia

Saudi Arabia

Any country
other than
Iran, USA.
Japan,
France and
Saudi Arabia

Saudi Arabia

Any

258.97

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Country of
origin

Country of
export

Saudi Arabia

Any country
other than Iran,
USA. Japan,
France and
Saudi Arabia

Any

258.97

Iran

Iran

Any

274.48

Any country
other than
Saudi Arabia,
USA, Japan,
France and
Iran

Iran

Any

274.48

Iran

Any country
other than
Saudi Arabia,
USA, Japan,
France and
Iran

Any

274.48

10

Japan

Japan

Any

282.64

11

Any country
other than
Saudi Arabia,
USA, Iran,
France and
Japan

Japan

Any

282.64

12

Japan

Any country
other than
Saudi Arabia,
USA, Iran,
France and
Japan

Any

282.64

13

France

France

Any

296.94

S.No.

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Producer

Exporter

Amount
(USD/ MT)

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S.No.

Country of
origin

Country of
export

14

Any country
other than
Saudi Arabia,
USA, Iran,
Japan and
France

France

Any

296.94

15

France

Any country
other than
Saudi Arabia,
USA, Iran,
Japan and
France

Any

296.94

16

USA

USA

Any

296.94

17

Any country
other than
Saudi Arabia,
France, Iran,
Japan and
USA

USA

Any

296.94

USA

Any country
other than
Saudi Arabia,
France, Iran,
Japan and USA

Any

296.94

18

Producer

Exporter

Amount
(USD/ MT)

Conclusion:
Globally the installed capacity of Caustic soda is 78.6 mn tons, of which the Indian
industry constitutes for 4 %. China has the highest Caustic Soda capacity at 34% of the
Global Caustic Soda capacity and emerging fast as a major Caustic Soda production hub.
Europe and N. America stands for 21% and 20% of the global capacity, respectively.
India has good opportunities in Caustic Soda production. Major Indian manufacturers
of Caustic Soda include Aditya Birla Group, Gujarat Alkalies & Chemicals and DCM
Shriram Consolidated among others. Indian Caustic Soda production, export and
imports have increased by 123%, 161% and 132%, respectively in the past five years.
Indian Caustic soda prices have also firmed up gradually in the past two years.
Government of India has exercised anti-dumping duty on imports to protect domestic
Caustic Soda industry. However, Indian industry has to strengthen its marketing and
technical aspects to be globally competitive.
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References:
1)
2)
3)
4)
5)
6)
7)
8)
9)

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Planningcommission.nic.in
derivatives.capitaline.com
business-standard.com
icis.com
reportlinker.com
lawcrux.com
ama-india.org
cbec.gov.in
capitalmarket.com

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