This week, the caustic soda price was weak (10.27-10.30) in China

October 30 report

I. Price Trends

According to the commodity analysis system, the caustic soda prices showed a weak trend this week. The average market price at the beginning of the week was 842 CNY/ton, and by the end of the week, it had decreased to 838 CNY/ton, a drop of 0.48%, and a year-on-year decrease of 19.19% compared to last year. On October 29, the chemical index was 755 points, down 2 points from yesterday, down 46.07% from the highest point of 1400 points (on October 23, 2021), and up 26.25% 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.)

2. Market Analysis

According to the commodity analysis system, the caustic soda prices in China were weak this week. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda was around 750-880 CNY/ton. In Jiangsu, the caustic soda prices remained stable, with the mainstream market price for 32% ion-exchange membrane caustic soda around 890-1000 CNY/ton. In Inner Mongolia, the caustic soda prices were stable, with the mainstream market price for 32% ion-exchange membrane caustic soda (on a 100% basis) around 2700-2800 CNY/ton. In the Shandong region, the supply has increased, and the fundamentals have not improved, leading to a weaker price trend. The recent decline in alumina prices has caused pessimism among dealers, and some enterprises are facing significant operational pressure, resulting in mostly on-demand purchases of caustic soda.

Analysts believe that the recent caustic soda prices have been operating on the weaker side. Recently, downstream sectors in China have mostly been purchasing according to their needs, and caustic soda suppliers have ample supply. The interplay of supply and demand suggests that caustic soda prices are expected to remain stable in the near future, depending on the specific demands of the downstream market.