Caustic Soda Prices Weak This Week (Nov. 24–Nov. 27)

November 27th 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 804 CNY/ton, and by the end of the week, it had dropped to 798 CNY/ton, a decrease of 0.75%. Compared to the same period last year, the price fell by 21.84%. On November 26, the chemical index in China was 765 points, up 1 point from the previous day. It has decreased by 45.36% from the highest point of 1400 points (on October 23, 2021) and increased by 27.93% 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 showed a weak trend this week. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda is around 710-810 CNY/ton. In Jiangsu, the caustic soda prices remained stable, with the mainstream market price for 32% ion-exchange membrane caustic soda around 840-930 CNY/ton. In Inner Mongolia, the caustic soda prices were consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda (on a 100% basis) around 2250-2350 CNY/ton. This week, the main downstream procurement prices in the Shandong liquid caustic soda market further declined. The supply and demand pattern has not changed, and both supply and demand are currently weak. The recent market entry enthusiasm of downstream alumina is average, and 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 show a weak and volatile trend in the later period.

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