Domestic demand for caustic soda in Japan recovers

The performance of the supply and demand of the caustic soda industry announced by the Japan Caustic Soda Industry Association showed that in May, the domestic demand for caustic soda in Japan increased by 14.5% year-on-year to 253,200 tons, maintaining an increase for two consecutive months. Analysts said that domestic demand fell to 221,000 tons due to the epidemic in the same month last year, but it is currently rebounding year-on-year. Among them, self-consumption (increased by 12.3% year-on-year) and market sales (increased by 15.6% year-on-year) both maintained growth, indicating that domestic demand has fully recovered.

According to product usage statistics, the chemical industry uses 143,300 tons of caustic soda, an increase of 8.7%; paper and pulp use 19,300 tons, an increase of 7.0%; water treatment and wastewater treatment uses 14,100 tons, an increase of 14.8%; food industry uses 5,600 Tons, an increase of 7.0% year-on-year. Caustic soda used in the chemical industry increased for 3 consecutive months. Water treatment and waste water treatment, as well as the food industry, increased for 4 consecutive months. In addition, the use of paper and pulp has turned to growth for the first time in 20 months since September 2019.

At the same time, Japan’s export of caustic soda was 34,500 tons, a year-on-year decrease of 28.5%, which was the first decrease in three months, with a sharp drop of 60.3% month-on-month; shipments of 287,800 tons, an increase of 6.8% year-on-year, were three consecutive months of growth; It was 281,600 tons, which was flat year-on-year.