company news about Brazilian Pulp Industry Increases Caustic Soda Demand

Brazilian Pulp Industry Increases Caustic Soda Demand

  China Chemical News: Recently, S&P Global released a report stating that the caustic soda usage industry in Brazil is experiencing rapid growth in demand. This trend has not only reshaped the industrial pattern of Brazil itself, but also had a significant impact on the international caustic soda trade, especially the export of caustic soda from the United States.

  The report indicates that the pulp and paper industry, as the main terminal industry for caustic soda consumption in Brazil, has demonstrated vigorous development vitality in recent years. S&P Global said that on March 27, Brazil's Klabin company launched its Phase II project at its Piracicaba factory in Sao Paulo, Brazil, which is the largest corrugated cardboard packaging factory in the Americas. This project aims to enhance Klabin's industrial integration model for efficiently converting paper into packaging products. Meanwhile, the world's largest pulp producer, Brazil's Suzano, is not willing to lag behind either. Last July, its Projeto Cerrado project located in Mato Grosso do Sul was officially put into operation. This project has the world's largest single cellulose production line, with an annual production capacity of up to 2.55 million tons and a total investment of 22.2 billion reais.

  S&P Global data shows that globally, the pulp and paper industry accounts for nearly 10% of caustic soda consumption and is the largest single consumer of caustic soda. In Central and South America, the pulp and paper industry ranks second in the application of caustic soda, accounting for 26%, only after the alumina industry. What is more worth noting is that it is expected that from 2022 to 2027, the demand for caustic soda in the pulp and paper industry in this region will grow at an annual rate of 8.2%, and it is likely to become the largest application field of caustic soda.

  The report particularly points out that the rapid expansion of the caustic soda usage industry in Brazil has led to a significant increase in its demand for caustic soda, and this demand gap is largely filled by imports. As a result, the United States has become Brazil's largest supplier of caustic soda. Last year, Brazil absorbed 50% of the caustic soda exports from the United States. The annual growth rate of exports reached 12%, and the export share also increased by 1.7 percentage points.

  In January, Brazil's share of US caustic soda exports soared to over 60%, firmly holding the top position in the US caustic soda export market. Sources said that the reason why Brazilian pulp and paper manufacturers mainly rely on the supply of caustic soda from the United States is that American suppliers can not only ensure a stable and large supply of goods, but also offer competitive prices.

  The domestic industry pattern in the United States also provides strong support for meeting the demands of Brazil. Companies like OxyVinyls and Olin are steadily advancing their caustic soda capacity expansion plans, and the caustic soda capacity in the United States is in a state of excess. This situation has given American caustic soda a greater price advantage and supply flexibility in the international market, further stimulating Brazil's enthusiasm for importing American caustic soda.

From “http://www.ccin.com.cn/”.

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