Caustic Soda Prices Weakly Trending This Week (Nov. 10–14)

November 14th News

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 836 CNY/ton, and by the end of the week, it had decreased to 832 CNY/ton, a decline of 0.48%, and a year-on-year decrease of 18.51% compared to last year. On November 13, the chemical index was 759 points, up 1 point from the previous day, down 45.79% from the highest point of 1400 points (October 23, 2021), and up 26.92% from the lowest point of 598 points on April 8, 2020. (Note: The period refers to the time since December 1, 2011.)

II. 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 750-860 CNY/ton. In Jiangsu, the caustic soda prices remained stable, with the mainstream market price for 32% ion-exchange membrane caustic soda around 850-970 CNY/ton. In Inner Mongolia, the caustic soda prices were consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda (converted to 100%) around 2450-2600 CNY/ton. In the Shandong region, there was not much change in the supply and demand situation, with ample supply leading to a weakening trend in prices. The recent prices of downstream alumina have been stagnant, and dealers are pessimistic. Some enterprises are facing significant operational pressure and are purchasing caustic soda on a need basis.

Analysts believe that the recent caustic soda prices have been weak. Recently, downstream sectors in China have mostly purchased according to demand, and caustic soda suppliers have had ample supply. The overall supply and demand dynamics suggest that caustic soda prices will likely remain stable in the near future, depending on the specific market demand from downstream sectors.