After a rough 1-2 years, some chemical and chemical-based stocks appear to be showing signs of turnaround Was looking at Caustic soda co. after the promoters announced preferential allotment It's a highly cyclical industry...ECU realizations peaked in Nov'22 and seem to have
What is Caustic Soda? NaOH is inorganic compound which is highly soluble in water and has capacity to absorb carbon dioxide as well as moisture directly from air Its chemical name is sodium hydroxide. It is used in making of soap & detergents, drainpipe cleaner etc. (2/n)
It is primarily produced through the electrolysis of sodium chloride (NaCl) solution in a process known as the chlor-alkali process 3 main types of processes used a) Mercury Cell Process b) Diaphragm Cell Process c) Membrane Cell Process (3/n)
Caustic soda/sodium hydroxide (NaOH) is primarily available in 3 different forms a) Solid Caustic Soda (i) Caustic soda pearl/Beadlets or Soda Grains (ii) Caustic soda flakes b) Liquid Caustic Soda/Caustic soda lye solution/NaOH in an aqueous solution (4/n)
Basic difference between Lye and Caustic Soda: Lye can refer to either sodium hydroxide (NaOH) or potassium hydroxide (KOH),while caustic soda refers to sodium hydroxide (NaOH) (5/n)
What is Electrochemical unit realization? The electro chemical unit (ECU) realizations which represent combined weighted average realization of caustic soda, chlorine and hydrogen (wherein chlorine and hydrogen are co-products of caustic soda) (6/n)
Industrial ECU Realization Trend ECU realizations: ₹23k/MT in FY21, rebounded to ₹55k/MT in FY-22. By April 2023, dropped to ₹33k/MT due to oversupply, impacting caustic soda players' profits Attached; Some Manufacturer's ECU realization in chart form (7/n)
Key Raw Materials used to make Caustic Soda & its suppliers in India o Key raw materials are salt (sodium chloride), water & energy in the form of electricity o Key suppliers of raw materials in India include Tata Chemicals, Gujarat Alkalies and Chemicals and Nirma (8/n)
Caustic soda finds usage & applications across various industries a) Chemical Industry b) Paper and Pulp Industry c) Textile Industry d) Aluminum Industry e) Water Treatment f) Petroleum Industry (9/n)
India's Caustic Soda Mkt 4600K tonnes in FY23, projected to grow at 6.47% CAGR by FY25 Global Caustic Soda Mkt 82 Mn tonnes in FY23, estimated to reach 94 Mn tonnes by 2032,with a 1.5% CAGR by 2032 (10/n)
India's caustic soda capacity was 55.65 lakh TPA, with production at 44.73 lakh TPA as on FY23 (having 80% capacity utilization rate) India has been a net exporter since FY20 (11/n)
Sources referred: https://straitsresearch.com/re... https://www.imarcgroup.com/cau... https://ama-india.org/industry... https://www.chemanalyst.com/in...
