This Week's Caustic Soda Prices Remain Firm (8.18-8.22)

August 22nd News

I. Price Trends

According to the commodity analysis system, the price of caustic soda has risen this week. At the beginning of the week, the average market price was 860 CNY/ton, and by the end of the week, it had increased to 862 CNY/ton, a rise of 0.23%, and a year-on-year increase of 7.08% compared to last year. On August 21, the chemical index was 771 points, unchanged from yesterday, a decrease of 44.93% from the highest point of 1400 points (October 23, 2021), and an increase of 28.93% from the lowest point of 598 points on April 8, 2020. (Note: The period refers to December 1, 2011, to the present.)

II. Market Analysis

According to the commodity analysis system, the price of caustic soda increased over the weekend this week. In Shandong, the mainstream market quotation for 32% ion-exchange membrane caustic soda is around 800-890 CNY/ton. In Jiangsu, the caustic soda price remains stable, with the mainstream market quotation for 32% ion-exchange membrane caustic soda around 870-930 CNY/ton. In Inner Mongolia, the caustic soda price is consolidating, with the mainstream market quotation for 32% ion-exchange membrane caustic soda (converted to 100%) around 2700-2800 CNY/ton. In the Shandong region, the caustic soda price was mainly stable during the week, with a slight increase over the weekend. The previously shut-down facilities have not yet resumed operations, so the inventory pressure on enterprises is not significant. The purchasing price of liquid caustic soda by major downstream enterprises has increased, leading to an upward trend in the regional liquid caustic soda price. Aluminum oxide is mostly purchased as needed, and non-aluminum buyers also mainly purchase according to their needs.

Analysts believe that in recent times, the caustic soda prices have shown a slight increase, with firm market performance. The downstream demand in China has been decent, and the inventory pressure on caustic soda producers is not high. There are expectations of maintenance by some downstream enterprises, and the overall supply and demand dynamics suggest that caustic soda prices will likely remain firm. The specific trend will depend on the downstream market demand.