Olin, Oxy, Westlake Face Lye Market Risks if EPA Bans Asbestos

Olin Corp., Oxy Chemical Corp., and Westlake Chemical Corp. could see their caustic soda sales thwarted if market trends continue and the EPA bans the chlor-alkali industry’s use of asbestos.

Caustic soda—also known as lye and sodium hydroxide—is a “building block” chemical used to make aluminum, detergents, and soap, and to prevent lead and copper from leaching out of water pipes.

The price of caustic soda rose from $384 a metric ton on April 30, 2016, to $698 a metric ton on April 2, 2018, according to Nexant Inc., a consulting firm ...