This Week's Caustic Soda Prices Decline (9.15-9.19)

September 19, News

I. Price Trends

According to the commodity analysis system, the price of caustic soda has fallen this week. The average market price at the beginning of the week was 878 CNY/ton, and by the end of the week, it had dropped to 838 CNY/ton, a decrease of 4.56%, but an increase of 0.6% compared to the same period last year. On September 18, the chemical index was 769 points, down 1 point from the previous day, down 45.07% from the highest point of 1400 points (October 23, 2021), and up 28.60% 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 caustic soda prices declined over the weekend this week. In Shandong, the mainstream market quotation for 32% ion-membrane alkali is around 770-890 CNY/ton. In Jiangsu, the caustic soda prices remained stable, with the mainstream market quotation for 32% ion-membrane alkali around 890-990 CNY/ton. In Inner Mongolia, the caustic soda prices were consolidating, with the mainstream market quotation for 32% ion-membrane alkali (converted to 100%) around 2700-2800 CNY/ton. In the Shandong region, the caustic soda prices mainly showed a downward trend during the week. The inventory of enterprises is low, and the inventory pressure is not significant. Recently, the prices of alumina both domestically and overseas have continued to fall, leading to a continuous narrowing of the profit margins for Chinese alumina enterprises. Therefore, downstream alumina purchases are mostly on a need basis, and non-aluminum purchases are also mainly on a need basis.

Analysts believe that the recent caustic soda prices have been operating weakly. Caustic soda prices have been relatively weak, and recently, downstream sectors in China have mostly purchased according to their needs. The inventory pressure for caustic soda producers is not significant. The overall supply and demand dynamics suggest that caustic soda prices will likely maintain a range-bound trend in the later period, depending on the specific market demand from downstream sectors.