This Week, Caustic Soda Prices Remain Stable (11.17-11.21)

November 21st, according to reports

I. Price Trends

According to the commodity analysis system, the caustic soda prices in China remained stable this week. The average market price from the beginning to the end of the week was 824 CNY/ton, a decrease of 19.29% compared to the same period last year. On November 20, the chemical index was 762 points, unchanged from the previous day, a decrease of 45.57% from the highest point of 1400 points (October 23, 2021), and an increase of 27.42% from the lowest point of 598 points on April 8, 2020. (Note: The cycle refers to the period from December 1, 2011, to the present.)

II. Market Analysis

According to the commodity analysis system, the caustic soda prices in China remained stable this week. In Shandong, the mainstream market price for 32% ion membrane caustic soda is around 730-840 CNY/ton. In Jiangsu, the caustic soda prices are stable, with the mainstream market price for 32% ion membrane caustic soda around 850-970 CNY/ton. In Inner Mongolia, the caustic soda prices are consolidating, with the mainstream market price for 32% ion membrane caustic soda (on a 100% basis) around 2350-2450 CNY/ton. There are still expectations of maintenance next week, but the supply situation in the Shandong region is unclear, and it is advisable to wait and see for now. Recently, the downstream alumina market has shown increased activity, but the market remains in a stalemate, with most purchases of caustic soda being made on a need basis. It is expected that the alumina market will experience a weak and volatile trend in the future.

Analysts believe that in the near term, the caustic soda prices will stabilize. Recently, most downstream sectors in China have been purchasing according to demand. Caustic soda producers are expected to undergo maintenance, and the overall supply and demand dynamics suggest that caustic soda prices will maintain a sideways trend. The specific situation will depend on the demand from the downstream market.