By Q1 2025, Caustic Soda prices in the USA (Lye FOB Houston) stabilized at $ 495.6/MT, showing a slight increase of +1.85% from Q4 2024. This stabilization can be attributed to a return to further normal demand situations after the vacation season, as artificial consumption generally situations off post festive period.
While demand remains steady from crucial sectors like fabrics and chemicals, force chains began to acclimate, and logistical dislocations eased kindly. As a result, the request set up a balance, leading to a slight increase in prices as the request acclimated to the ongoing requirements of the manufacturing sector.Â
In Q2 2025, according to the PriceWatch, Caustic Soda prices in the USA (Lye FOB Houston) experienced a -4.17% decrease, settling at USD 475 per metric ton. Demand showed signs of normalization across both domestic and international markets, as major end-users in sectors such as alumina refining and textiles scaled back purchases.
This pullback was largely due to accumulated inventories from Q1 and improved local supply in several importing countries. Although the Iran–Israel conflict introduced some uncertainty into global energy and shipping markets, its direct impact on U.S. caustic soda remained limited.
Energy price trend initially saw a modest rise due to regional instability, but eased over the quarter, helping moderate production costs. With fewer logistical bottlenecks, freight costs declined slightly, lowering the landed cost for international buyers. Increased marine insurance premiums and longer routes in some global corridors had minimal effect on Houston-based exports.
Additional pressure came from heightened global competition, particularly from Middle Eastern and East Asian suppliers seeking to expand their market share. Despite moderate export flows, the overall market sentiment remained balanced, with no significant signs of tightness emerging.Â
In Q1 2024, the global Caustic Soda request endured a bullish trend, driven by rising demand from diligence similar as Chemicals, Paper, Textiles, and Water Treatment. crucial countries like China, India, Japan, Saudi Arabia, the UAE, and the USA witnessed this swell. The Caustic Soda request in the USA (Lye FOB Houston) saw a positive trend, with prices reported at $ 346/MT, showing an increase of +3.08% from the former quarter.
This supplement can be attributed to a steady demand from crucial sectors similar as paper and pulp, fabrics, and cleansers. The early months of 2024 also saw a boost in artificial product as companies ramped up affair after the vacation season, contributing to a rise in Caustic Soda consumption. also, force chain dislocations, including rising freight rates and logistical challenges, played a part in pushing prices higher, despite the ongoing enterprises about global profitable query. Â
In Q2 2024, Caustic Soda prices in the USA (Lye FOB Houston) surged to $ 391.6/MT, reflecting a significant increase of +13.40% compared to Q1. This sharp rise was driven by increased demand across colourful diligence, including chemicals, cleaner product, and fabrics, as the spring season led to advanced consumption.
The post-pandemic recovery in the manufacturing sector and a swell in product conditioning, particularly for the food and libation packaging assiduity, further fuelled demand for acidulous Soda. also, tight domestic force chains, coupled with logistical issues, similar as harbourage traffic and vessel dearth’s, led to upward pressure on prices. Â
In Q3 2024, the Caustic Soda request in the USA (Lye FOB Houston) continued its upward line, with prices reaching $ 431.6/ MT, an increase of +10.21% from Q2. This rise was largely driven by seasonal factors, as the summer months saw heightened demand from diligence like drawing products and water treatment.
Likewise, the need for acidulous Soda in the paper assiduity remained strong due to advanced demand for bleached paper products as seminaries and businesses proceeded full operations. Domestic product plodded to keep pace with the rising demand, and with force chain dislocations continuing, these factors inclusively led to advanced prices during this quarter. Â
In Q4 2024, Caustic Soda prices in the USA (Lye FOB Houston) surged further to $ 486.6 /MT, marking an increase of +12.74% from Q3. This shaft was driven by seasonal demand increases, especially from diligence related to the forthcoming vacation season. The packaging assiduity saw significant demand as companies prepared for the gleeful period, driving up consumption of acidulous Soda in manufacturing.
Also, logistical challenges, similar as tight domestic force chains and rising transportation costs, contributed to the price hike. The time- end swell in demand for drawing products and cleansers also played a pivotal part in tensing the request and pushing prices higher. Â
In Q1 2025, Caustic Soda (Flakes, Purity: >97% (Industrial Grade) Ex-Bharuch) prices saw a slight decrease falling to $ 520/MT, which is a drop of –11.86% from Q4. This dip is typically seen after the festive season as demand from end-use industries slows down and stockpiles are gradually consumed.
Additionally, improved logistics and steady production across Indian plants led to a more balanced supply chain. While demand remained consistent from sectors like textiles and water treatment the market overall moved towards stabilization in the post-festival quarter.Â
In Q2 2025, according to the PriceWatch Caustic Soda Flakes prices (Purity: >97%, Industrial Grade) Ex-Bharuch recorded an increase of +6.73%, rising to USD 555 per metric ton. This upward movement was supported by a recovery in demand from core industries particularly alumina and water treatment plants.
Improved domestic consumption, combined with firm regional cues from other parts of Asia strengthened overall market sentiment. Manufacturers raised offers slightly to reflect increased operational costs and healthier order books.
The lingering effects of geopolitical and logistical disruptions continued to slightly tighten local supply contributing to the bullish tone. As industries ramped up procurement activities price trend remained firm to slightly bullish across India throughout the quarter.Â
In Q1 2024, the Indian Caustic Soda (Flakes, Purity: >97% (Industrial Grade) Ex-Bharuch) market saw a slightly bullish trend, with prices reported at $ 480/MT, marking a +0.00% stable from the previous quarter. This increase was primarily driven by steady demand from key industries such as textiles, pulp & paper, and alumina.
The early part of the year often sees stable industrial activity, and this supported the demand for Caustic Soda. Additionally, slight disruptions in domestic transportation during the early months and limited product availability in some regions also contributed to this upward price movement.Â
In Q2 2024, Caustic Soda (Flakes, Purity: >97% (Industrial Grade) Ex-Bharuch) prices in India continued to climb, reaching around $ 500/MT, showing a growth of +4.17% from Q1. The rise was mainly due to increased demand from the textile and chemical processing industries, which typically pick up pace in the pre-monsoon period.
Moreover, the summer season added to the water treatment demand, as several municipalities and industries increased their operations. Some logistical challenges, such as limited availability of rail wagons and rising energy costs, further contributed to the price hike.Â
By Q3 2024, Caustic Soda (Flakes, Purity: >97% (Industrial Grade) Ex-Bharuch) prices had inched up again to $ 505/MT, reflecting a +1.00% increase from the previous quarter. This mild rise can be attributed to consistent demand from the alumina and paper sectors, which remained active during the monsoon season.
While some regions witnessed a slowdown due to rainfall-related transportation hurdles, others saw continued industrial usage. At the same time, abundant supply from domestic producers helped to keep prices from spiking too sharply, balancing the market overall.Â
In Q4 2024, the market saw a sharper rise, with Caustic Soda (Flakes, Purity: >97% (Industrial Grade) Ex-Bharuch) prices reported at $ 590/MT, marking a significant increase of +16.83% from Q3. This surge was largely driven by festive season demand, especially from the packaging, food processing, and detergent industries, which traditionally ramp up production ahead of festivals like Diwali.
On top of that, energy costs remained elevated, and freight challenges during the high-demand period added to the price pressure. Seasonal buying and stocking further pushed demand, causing a noticeable market shift.Â
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Caustic Soda, also known as sodium hydroxide (NaOH), is a highly versatile and strong alkaline chemical widely used in various industries. It plays a crucial role in applications such as paper and pulp production, water treatment, textiles, and chemical manufacturing. Caustic Soda is typically available in solid, liquid, or flake forms and is known for its ability to neutralize acids and break down organic materials.
Packaging Type
Caustic Soda Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
S. No. | Test  | Lye Specifications | Flake Specifications |
1. | Sodium Hydroxide as NaOH | 48% Min | 97% Min |
2. | Sodium Carbonate as Na₂CO₃ | 0.20% Max | 0.40% Max |
3. | Chloride as Cl | 0.015% Max | 0.03% Max |
5. | Iron as Fe | 10 ppm Max. | 20 ppm Max. |
Caustic Soda Applications
Caustic Soda is a highly versatile chemical used in a variety of applications. It serves primarily as a key ingredient in producing other important substances, including:Â
These applications highlight Caustic Soda’s crucial role in multiple industries and everyday products.Â
These events highlight the sensitivity of the Caustic Soda market to geopolitical, environmental, and economic disruptions. Continuous monitoring of global supply demand dynamics remains essential to managing price volatility.Â
PriceWatch is your trusted resource for tracking global caustic soda price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the caustic soda market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.
In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence caustic soda prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely caustic soda market data.
Track PriceWatch's caustic soda price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.
This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Caustic Soda pricing assessments, helping our clients stay ahead of market trends and make well informed decisions in a dynamic global market.Â
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Caustic Soda, also known as sodium hydroxide (NaOH), is a highly versatile and strong alkaline chemical widely used in various industries. It plays a crucial role in applications such as paper and pulp production, water treatment, textiles, and chemical manufacturing. Caustic Soda is typically available in solid, liquid, or flake forms and is known for its ability to neutralize acids and break down organic materials.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
S. No. | Test  | Lye Specifications | Flake Specifications |
1. | Sodium Hydroxide as NaOH | 48% Min | 97% Min |
2. | Sodium Carbonate as Na₂CO₃ | 0.20% Max | 0.40% Max |
3. | Chloride as Cl | 0.015% Max | 0.03% Max |
5. | Iron as Fe | 10 ppm Max. | 20 ppm Max. |
Applications
Caustic Soda is a highly versatile chemical used in a variety of applications. It serves primarily as a key ingredient in producing other important substances, including:Â
These applications highlight Caustic Soda’s crucial role in multiple industries and everyday products.Â
Caustic soda prices are influenced by several factors, including the cost of raw materials, such as salt and energy, production capacity, and operational efficiency of chlor-alkali plants. Supply-demand imbalances, particularly from key regions like Asia and Europe, can also drive price fluctuations. Additionally, transportation costs, government regulations, and environmental policies (especially regarding carbon emissions) impact pricing. Global economic conditions and the availability of caustic soda in downstream industries like pulp and paper, textiles, and chemicals further influence market prices.
Energy costs, particularly electricity, play a significant role in caustic soda pricing since the chlor-alkali process is highly energy-intensive. Any fluctuations in energy prices, especially in countries with high electricity costs, directly impact the cost of production. Feedstock like salt also affects pricing; a shortage or cost increase in these materials can drive up caustic soda prices. Procurement teams should closely monitor energy markets and global salt supply to forecast price movements.
Regional price differences for caustic soda are driven by factors such as local production capacity, energy costs, environmental regulations, and transportation expenses. For instance, regions with higher energy efficiency or access to cheaper energy sources may offer lower prices. In contrast, Europe, with stricter environmental policies, tends to have higher caustic soda prices compared to regions like China or the Middle East. Procurement heads should consider regional price variations and adjust their sourcing strategies to capitalize on cost-effective regions while maintaining reliable supply chains.
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