This Week Caustic Soda Prices Remain Firm (9.1-9.5) in China

September 05, News

I. Price Trends

According to the commodity analysis system, the price of caustic soda has risen this week. The average market price from the beginning to the end of the week was 890 CNY/ton, an increase of 7.1% compared to last year. On September 4, the chemical index was 770 points, unchanged from yesterday, a decrease of 45.00% from the highest point of 1400 points (October 23, 2021), and an increase of 28.76% from the lowest point of 598 points on April 8, 2020. (Note: The period refers to the time from 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 price for 32% ion-membrane caustic soda is around 840-910 CNY/ton. In Jiangsu, the caustic soda price remains stable, with the mainstream market price for 32% ion-membrane caustic soda around 870-950 CNY/ton. In Inner Mongolia, the caustic soda price is consolidating, 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 price remained stable during the week. The previously shut-down facilities have not yet resumed operation, and the inventory pressure on enterprises is not significant. Alumina is mostly purchased as needed, and non-aluminum buyers also mainly purchase according to their needs.

Analysts believe that in the recent period, the caustic soda price has been stable with minor fluctuations. The caustic soda price remains firm. Recently, downstream industries in China have been purchasing according to their needs, and the inventory pressure on caustic soda producers is not high. There are expectations of maintenance shutdowns at some downstream companies. Considering the supply and demand dynamics, it is expected that the caustic soda prices will remain firm in the later period, depending on the specific downstream market demand.