With production restrictions at Brazil’s alumina refiner Alunorte lifted, the company’s caustic soda demand is likely to increase gradually. Alunorte’s increase in demand was expected to lead to a more balanced market following a period of caustic soda length in the region, the company’s restrictions on alumina refining since early 2018, and the general decline in caustic soda consumption.
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Demand this year for polyvinyl chloride (PVC) in various Latin American countries will depend on specific political and economic conditions in each country, even as participants also consider resin pricing.
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Brazil’s year-to-date (YTD) caustic soda production in January 2019 was 110,220 dry metric tons (dmt), a 19 percent increase compared with 92,690 dmt in January 2018, according to Abiclor, the country’s association of chlor-alkali industries.
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The Alunorte refinery in Barcarena, Pará state, in northern Brazil, is not likely to return to full alumina production in the near future. The company cut production from full rates after heavy rains in early 2018 raised concerns about leakage from retention ponds and potential contamination to surrounding areas.
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