Japanese Chemical Trader blog

Japan Chemical Trading Blog

Caustic Soda Price Increased in Japan

According to the Nikkei Newspaper on July 7, “the domestic price of caustic soda in Japan increased.
Paper companies, which are large consumers, began to accept higher price one and a half years after the first announcement of a price increase by manufacturers”.

Caustic soda is produced together with chlorine by electrolyzing saline water in the electrolytic soda industry and is used as alkali in wide a range of applications.
This news may surprise some people who are not familiar with the Japanese market, because the current international price of caustic soda is in a downward trend rather than increasing.

The price of caustic soda, whose unit price is inexpensive, can easily fluctuate merely because of domestic affairs since imported caustic soda cannot compete against the domestic product due to the import costs.
Electricity costs have been rising because of the shutdown of nuclear reactors after the Great East Japan Earthquake, and fuel prices have increased, caused by the weaker Japanese Yen: increased costs are finally reflected in the price of caustic soda several years down the line.