This Week's Caustic Soda Prices Increased (8.11-8.15)

August 15th News

I. Price Trends

According to the commodity analysis system, the price of caustic soda has risen this week. The average market price at the beginning of the week was 852 CNY/ton, and by the end of the week, it had increased to 856 CNY/ton, a rise of 0.47%, and a 7.13% increase compared to the same period last year. On August 14, the chemical index was 771 points, a decrease of 1 point from the previous day, down 44.93% from the highest point of 1400 points (on October 23, 2021), and up 28.93% from the lowest point of 598 points on April 8, 2020. (Note: The cycle refers to the period from December 1, 2011, to the present.)

II. Market Analysis

According to the commodity analysis system, the caustic soda prices rose over the weekend this week. In Shandong, the mainstream market price for 32% ion-membrane caustic soda is around 800-880 CNY/ton. In Jiangsu, the caustic soda prices are stable, with the mainstream market price for 32% ion-membrane caustic soda around 850-930 CNY/ton. In Inner Mongolia, the caustic soda prices are steady, with the mainstream market price for 32% ion-membrane caustic soda (converted to 100%) around 2700-2800 CNY/ton. In the Shandong region, the caustic soda prices were mainly stable during the week, with a slight increase over the weekend. The maintenance of some facilities has not yet been completed, so the inventory pressure on enterprises is not significant. The main downstream companies have raised their purchase prices for liquid caustic soda, leading to an increase in the regional liquid caustic soda prices. Alumina purchases are mostly based on demand, and non-aluminum buyers also primarily purchase according to their needs.

Analysts believe that the caustic soda prices have shown a slight increase recently. The downstream demand in China is currently decent, and the inventory pressure for caustic soda producers is not significant. Considering the supply and demand dynamics, it is expected that caustic soda prices will remain firm in the later period, depending on the specific downstream market demand.