Understanding the Caustic Soda Shortage: The Downstream Impact of Weak PVC Demand

The global caustic soda market has experienced a notable shortage in recent months, primarily driven by reduced demand for polyvinyl chloride (PVC) due to a slowdown in construction activity.

Caustic soda is co-produced during the manufacture of chlorine—a critical input in PVC production. As a result, a decline in PVC demand leads to reduced chlorine output, which, in turn, limits caustic soda production.