US caustic soda exports in the first three months of 2021 fell 3% from the year-ago period, although month-on-month outflows in the quarter showed a sharper decline amid chlor-alkali shutdowns along the US Gulf Coast because of a February deep freeze, the latest US International Trade Commission data, released May 6, showed.
The US exported nearly 1.33 million mt of caustic soda in Q1 2021, down from 1.37 million mt in Q1 2020, data showed.January outflows reached 561,917 mt and fell 18% to 459,639 in February. Exports fell another 33% to 307,060 in March, data showed.
About 90% of US chlor-alkali capacity is on the US Gulf Coast, where sustained subfreezing temperatures forced widespread petrochemical plant shutdowns in mid-February.
Restarts in March came slowly as producers waited for upstream cracker restarts to provide ethylene feedstock, and ramp-ups have been gradual while watching for cracks, pinhole leaks, and other damage in miles of pipes exposed to frigid cold for more than 72 hours.
Caustic soda, a byproduct of chlorine production, is a key feedstock for alumina and pulp and paper industries, as well as soaps and detergents.
Brazil, the top export market for US caustic soda, received 774,883 mt in Q1, 58% of the total shipped out, up 2% from 759,572 mt received in the year-ago period, data showed.
Flows to Brazil reached 298,867 mt in February, up 7.4% from 278,174 mt in January. Flows then fell 33% to 197,842 mt in March, reflecting freeze fallout.
While outflows fell, US caustic soda imports rose in Q1, data showed. The US is a net exporter of caustic soda. However, imports flow to the US East and West coasts when import pricing is more favorable than receiving US volumes via rail from the US Gulf Coast region.
ITC data showed caustic soda imports reached 251,175 mt in January through March, up 23.6% from 203,136 mt in the year-ago quarter.
Of the total, 115,796 mt, or 46%, came from Europe, while 103,404 mt, or 41%, came from Taiwan and Japan, the data showed.
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