The consumption of caustic soda in Northeast Asia and India is expected to continue to grow this year due to strong consumption of alumina, paper and other major applications. Head of the Asia-Pacific region of Tricon Energy, headquartered in the United States, said at the Indian Mumbai 2011 India Products Conference on April 7th that the average annual growth rate of global caustic soda in major consumer sectors from 2010 to 2015 is expected to be 4 %. Driven by the rapid development of the alumina and paper industries, global demand for caustic soda reached 61.1 million tons in 2010 and it is expected that demand will continue to grow this year. According to analysis by Sanguang Energy, 60% of global caustic soda is used in alumina industry; followed by paper industry, accounting for 25%; the remaining 15% is used in other industries. The company expects that the demand for caustic soda in Northeast Asia this year will increase by 5.1% to 26 million tons. The output of caustic soda in Northeast Asia is expected to increase by 5.7% this year to 29.4 million tons, which will continue to be the main caustic soda export area. As the world's largest producer of caustic soda, China currently has an annual production capacity of 30 million tons, accounting for 38% of the world's total annual production capacity. The company said that China's caustic soda production capacity continues to rise. From the fourth quarter of 2010 to the first quarter of 2011, China's annual production capacity of caustic soda increased by nearly 2 million tons. Amitabh Gupta, senior vice president of India's caustic soda company DCW, said that the demand for caustic soda in India will also grow strongly. It is expected that the growth rate of demand for caustic soda in India will reach about 7% this year. He also predicted that the demand for PVC in India will reach 2.75 million tons in 2011, and the output will reach 2.5 million tons. Gupta said that the average per capita consumption of caustic soda in India is only 1.85 kilograms, which is far below the Chinese average of 9.5 kilograms per capita. India has a population of 1.2 billion and is still growing at an average annual rate of 1.6%. If the Indian economy can grow at a rate of 8%, it will continue to stimulate the rapid growth of the caustic soda market. In addition, the Indian alumina industry is currently growing at an average annual rate of 15%, and the demand for caustic soda in the paper and textile industries is also expected to grow at a rate of 5%.
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