LONDON — February 18, 2025 — UK construction output increased by 0.4% in 2024 compared with 2023, marking the fourth consecutive year of annual growth. However, the composition of activity shifted markedly. New work decreased by 5.3% annually, while repair and maintenance rose by 8.5%. In Quarter 4 2024, total construction new orders fell by 2.4%, with infrastructure new work dropping 23.5%.
This divergence created a two-speed market for caustic soda flakes. Large-scale infrastructure and new-build projects weakened, reducing bulk chemical offtake from major contractors. Conversely, repair and maintenance activity in private housing and non-housing sectors expanded, supporting steady demand for caustic soda flakes used in concrete treatment, surface cleaning, and building material manufacturing.
The UK chemical industry simultaneously faced elevated energy costs and workforce constraints. Operating conditions remained challenging, with input cost inflation and subdued client confidence limiting capital expenditure across the board. Despite these headwinds, consumption of caustic soda flakes in downstream cleaning, degreasing, and construction chemical applications proved resilient.
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