Sodium Hydroxide Price Increase on February 25

February 25th, News

I. Price Trends

According to the commodity analysis system, the price of caustic soda has risen after the Spring Festival. On February 25, the average market price of caustic soda was 634 CNY/ton, an increase of 1.93% from the previous trading day. On February 24, the chemical index was 785 points, a decrease of 2 points from the previous day, and a decline of 43.93% from the highest point of 1,400 points (October 23, 2021). Compared to the lowest point of 598 points on April 8, 2020, it has increased by 31.27%. (Note: The period refers to December 1, 2011, to the present.)

2. Market Analysis

According to the commodity analysis system, the caustic soda market is on an upward trend. In Shandong, the mainstream market price for 32% ion-membrane caustic soda is around 600-670 CNY/ton. In Zhejiang, 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 (converted to 100%) around 2050-2150 CNY/ton. After the Spring Festival, some traders and downstream users have been restocking, leading to an increase in liquid chlorine prices and a recovery in chlor-alkali profits. Some caustic soda producers have lower inventories, driving up caustic soda prices. However, as downstream enterprises complete their restocking, the overall upward potential for caustic soda prices is limited.

Analysts believe that the price of caustic soda is trending upwards recently. After the holiday, the price of liquid alkali in Shandong increased in the short term due to the need for restocking. However, as the restocking is completed, it is generally expected that the caustic soda market will continue to maintain a range-bound operation, depending on the specific demand from downstream markets in China.