What is the primary cause of the global caustic soda supply tightening according to Olin's CEO?

According to Olin CEO Ken Lane, the primary cause is a chain reaction triggered by Asian ethylene production curtailments and force majeure declarations—such as by Tianjin Bohua Chemical Development—due to restricted raw material access and surging costs, which reduced vinyls feedstock and chlor-alkali production, thereby cutting global caustic soda output.

How has the closure of the Strait of Hormuz impacted Asian ethylene production and, subsequently, caustic soda supply?

The closure of the Strait of Hormuz cut off Asia from over 60% of its naphtha supply (its predominant cracker feedstock), causing Asian cracker utilization to fall from 83% in February to 57% in May, which depressed ethylene production; since chlor-alkali plant rates follow vinyl demand (due to chlorine storage constraints requiring ethylene for derivative formation), this led directly to lower chlorine and co-product caustic soda output across Asia.

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