Latin America and the Caribbean: Caustic Soda Market 2024

Caustic Soda Market Size in Latin America and the Caribbean

In 2021, the Latin American caustic soda market increased by 14% to $X for the first time since 2018, thus ending a two-year declining trend. The market value increased at an average annual rate of +1.3% over the period from 2012 to 2021; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Over the period under review, the market reached the maximum level at $X in 2018; however, from 2019 to 2021, consumption remained at a lower figure.

Caustic Soda Production in Latin America and the Caribbean

In value terms, caustic soda production rose slightly to $X in 2021 estimated in export price. The total output value increased at an average annual rate of +1.3% from 2012 to 2021; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2017 with an increase of 16%. Over the period under review, production attained the peak level at $X in 2018; however, from 2019 to 2021, production failed to regain momentum.

Caustic Soda Exports

Exports in Latin America and the Caribbean

In 2021, shipments abroad of caustic soda increased by 1% to X tons, rising for the second consecutive year after two years of decline. Over the period under review, exports, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2014 with an increase of 45% against the previous year. As a result, the exports attained the peak of X tons. From 2015 to 2021, the growth of the exports remained at a somewhat lower figure.

In value terms, caustic soda exports rose to $X in 2021. In general, exports, however, saw a perceptible downturn. The pace of growth was the most pronounced in 2017 when exports increased by 41%. The level of export peaked at $X in 2018; however, from 2019 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Peru prevails in exports structure, reaching X tons, which was approx. 80% of total exports in 2021. Brazil (X tons) ranks second in terms of the total exports with a 7% share, followed by Argentina (6.5%). The following exporters - Mexico (X tons) and Guatemala (X tons) - each accounted for a 4.6% share of total exports.

Peru was also the fastest-growing in terms of the caustic soda exports, with a CAGR of +5.8% from 2012 to 2021. At the same time, Guatemala (+5.6%) displayed positive paces of growth. By contrast, Brazil (-8.9%), Mexico (-11.5%) and Argentina (-15.4%) illustrated a downward trend over the same period. Peru (+34 p.p.) significantly strengthened its position in terms of the total exports, while Mexico, Brazil and Argentina saw its share reduced by -4.3%, -8.3% and -21.3% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Peru ($X) remains the largest caustic soda supplier in Latin America and the Caribbean, comprising 69% of total exports. The second position in the ranking was taken by Argentina ($X), with a 12% share of total exports. It was followed by Brazil, with a 5.8% share.

From 2012 to 2021, the average annual rate of growth in terms of value in Peru was relatively modest. In the other countries, the average annual rates were as follows: Argentina (-9.7% per year) and Brazil (-11.2% per year).

Export Prices by Country

The export price in Latin America and the Caribbean stood at $X per ton in 2021, with an increase of 2.5% against the previous year. Over the period under review, the export price, however, showed a perceptible decline. The pace of growth appeared the most rapid in 2017 an increase of 34% against the previous year. Over the period under review, the export prices attained the peak figure at $X per ton in 2018; however, from 2019 to 2021, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Mexico ($X per ton), while Brazil ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Argentina (+6.8%), while the other leaders experienced mixed trends in the export price figures.

Caustic Soda Imports

Imports in Latin America and the Caribbean

In 2021, overseas purchases of caustic soda increased by 3.2% to X tons, rising for the fifth consecutive year after three years of decline. Over the period under review, imports, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 with an increase of 25%. The volume of import peaked at X tons in 2013; however, from 2014 to 2021, imports stood at a somewhat lower figure.

In value terms, caustic soda imports surged to $X in 2021. Total imports indicated modest growth from 2012 to 2021: its value increased at an average annual rate of +1.0% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports decreased by -28.8% against 2018 indices. The growth pace was the most rapid in 2017 when imports increased by 49% against the previous year. The level of import peaked at $X in 2018; however, from 2019 to 2021, imports failed to regain momentum.

Imports by Country

Brazil was the largest importing country with an import of around X tons, which amounted to 68% of total imports. It was distantly followed by Jamaica (X tons), Mexico (X tons) and Chile (X tons), together generating a 21% share of total imports. Colombia (X tons) and Guatemala (X tons) took a relatively small share of total imports.

Imports into Brazil increased at an average annual rate of +1.8% from 2012 to 2021. At the same time, Jamaica (+3.9%) and Guatemala (+3.2%) displayed positive paces of growth. Moreover, Jamaica emerged as the fastest-growing importer imported in Latin America and the Caribbean, with a CAGR of +3.9% from 2012-2021. By contrast, Colombia (-1.1%), Mexico (-3.7%) and Chile (-4.6%) illustrated a downward trend over the same period. While the share of Brazil (+10 p.p.) and Jamaica (+3.2 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Mexico (-2.1 p.p.) and Chile (-2.4 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) constitutes the largest market for imported caustic soda in Latin America and the Caribbean, comprising 62% of total imports. The second position in the ranking was held by Mexico ($X), with an 8.7% share of total imports. It was followed by Jamaica, with an 8.6% share.

From 2012 to 2021, the average annual rate of growth in terms of value in Brazil stood at +3.3%. The remaining importing countries recorded the following average annual rates of imports growth: Mexico (+1.9% per year) and Jamaica (-0.6% per year).

Import Prices by Country

The import price in Latin America and the Caribbean stood at $X per ton in 2021, surging by 26% against the previous year. Import price indicated a slight expansion from 2012 to 2021: its price increased at an average annual rate of +1.1% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, caustic soda import price decreased by -35.2% against 2018 indices. The most prominent rate of growth was recorded in 2016 when the import price increased by 32%. Over the period under review, import prices attained the peak figure at $X per ton in 2018; however, from 2019 to 2021, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Mexico ($X per ton), while Jamaica ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Mexico (+5.8%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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