"Sales to alumina refineries represent more than half of the global caustic soda trade in terms of volume," Vincent Pedailles-Ledoux, senior analyst at IHS, told IM. "Most caustic exporters rely heavily on the alumina industry and, in return, alumina players are influenced by caustic soda, which represents 13% of their cash costs, on average." Australia is the world's largest importer of caustic soda, with pretty much all of it going into the alumina Industry. Last year, the country imported around 2.2m tonnes caustic soda, which represented 25% of global caustic trade, according to IHS. Around three quarters of Australia's caustic soda consumption was sourced from Asia, dominated by China, while the According to Pedailles-Ledoux, Chinese caustic soda consumption in alumina is set to increase in the near term, as the country comes to rely more on its domestic bauxite reserves, which are generally of a lower grade than imported material. The lower the quality of the bauxite, the more caustic soda is needed to
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