What is Sodium Hydroxide?

What is sodium hydroxide?

Sodium hydroxide is a base or neutralizing agent used in a number of manufacturing processes. It is also known by its more common name of caustic soda.

Because it can be used to balance pH, it is used in a range of manufacturing processes including soap making, candle making, paper processing, and frosting glass. People outside of the manufacturing world may encounter sodium hydroxide because it is also used in creating homemade biodiesel, making several foods, and chemistry experiments.

It its pure form, sodium hydroxide is a white solid.

Is caustic soda the same as lye?

Caustic soda is often also known as lye, though the term “lye” is used to refer to not only sodium hydroxide but to potassium hydroxide as well. Potassium hydroxide is not known as caustic soda, but is known as caustic potash, and can also be used in multiple manufacturing processes.

Are lye and caustic soda easy to acquire?

Lye used to be easier to acquire than it is now. Because lye can be used to control pH, it can be used in the process of making methamphetamine, so now its sale is limited.

However, the substance can still be obtained. People using lye should make sure that it is 100 percent sodium hydroxide, lye, or caustic soda, because impurities can make it dangerous. This is especially the case if you are using it to make food.

Lye can be found from the following sources:

• drain cleaners
• online chemical supply stores
• soap making stores
• candle making stores
• biodiesel supply stores

Why is caustic soda making the news?

Caustic soda has been making news headlines recently because it is at the center of price fixing accusations. A small caustic soda producer has accused the industry’s largest players of colluding to fix prices of caustic soda.  

Allegedly, large caustic soda producers, including Formosa Plastics, Occidental Chemical, Olin, Shintech, and Westlake Chemical, conspired to limit the amount of caustic soda available on the market, driving up prices, and then working together to determine and maintain the price of caustic soda at artificially high levels.

These large chemical companies allegedly control around 90 percent of the caustic soda market, and therefore have significant control over the industry and the conditions of the market.

The caustic soda price fixing class action lawsuit was filed by Amrex Chemical, a small chemical firm that claims it and many other chemical companies were negatively affected by the large companies’ actions.

Amrex Chemical claims that the large caustic soda companies actions were illegal, in that they violated anti-trust laws and were anticompetitive. Amrex seeks damages on behalf of itself and other allegedly affected companies, and seeks for the large companies to be forced to cease collusion. 

How has the alleged price fixing possibly affected people who try to buy caustic soda?

According to Amrex, the price fixing of lye began in 2015, when the large chemical companies began limiting the supply of lye. So, there was less lye on the market for consumers to buy. Amrex argues that the companies then worked together to raise the price of lye, causing consumers to have to pay more than they otherwise would for the product.

Join a Free Caustic Soda Class Action Lawsuit Investigation

If your business has purchased caustic soda since 2015, you may have been affected by this alleged price-fixing scheme. Participating in this free caustic soda price-fixing class action lawsuit investigation may help you get compensation.

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This article is not legal advice. It is presented
for informational purposes only.