On December 22, the caustic soda price in China remained stable

December 22nd, according to reports

I. Price Trends

According to the commodity analysis system, the caustic soda prices in China have remained stable this week. The average market price on December 22 was 748 CNY/ton, a decrease of 15.9% compared to the same period last year. On December 21, the chemical index was 763 points, unchanged from the previous day, down 45.50% from the highest point of 1400 points (on October 23, 2021), and up 27.59% 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.)

2. Market Analysis

According to the commodity analysis system, the caustic soda prices are currently stable. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda is around 690-780 CNY/ton. In Jiangsu, the caustic soda prices remain stable, with the mainstream market price for 32% ion-exchange membrane caustic soda at around 760-870 CNY/ton. In Inner Mongolia, the caustic soda prices are adjusting, with the mainstream market price for 32% ion-exchange membrane caustic soda (converted to 100%) at around 2100-2200 CNY/ton. This week, the supply and demand pattern has not changed, with high production levels and a continued state of ample supply. The recent market entry enthusiasm for downstream alumina is average, and the market remains in a stalemate, with most caustic soda being purchased as needed. It is expected that the alumina market will show a weak and fluctuating trend. In the short term, the price of alumina in China will experience minor fluctuations.

Analysts believe that in the near term, this week's caustic soda prices have been consolidating. Recently, downstream sectors in China have mostly been purchasing according to their needs. There is no positive support for the Shandong market next week, and demand has not seen any substantial improvement. The overall supply and demand dynamics suggest that caustic soda prices may continue to consolidate. The specific trend will depend on the downstream market demand.