Post-Holiday Demand Follow-Up Drives Up Caustic Soda Prices

February 27th, News

I. Price Trends

According to the commodity analysis system, the price of caustic soda has shown an upward trend. At the beginning of the week, the average market price was 622 CNY/ton, and by the end of the week, it had risen to 654 CNY/ton, an increase of 5.14%. Compared to the same period last year, the price has fallen by 30.57%. On February 26, the chemical index in China was 789 points, up 3 points from the previous day. It has decreased by 43.64% from the highest point of 1400 points (on October 23, 2021) and increased by 31.94% from the lowest point of 598 points on April 8, 2020. (Note: The period refers to the time from December 1, 2011, to the present.)

II. Market Analysis

According to the commodity analysis system, the price of caustic soda has risen this week. In Shandong, the mainstream market price for 32% ion-membrane caustic soda is around 600-680 CNY/ton. In Jiangxi, the market fluctuation for liquid caustic soda is relatively limited, with the mainstream transaction price for 32% liquid caustic soda being around 710-780 CNY/ton. In Inner Mongolia, the price of caustic soda is stable, with the mainstream market price for 32% ion-membrane caustic soda (on a 100% basis) being around 2050-2150 CNY/ton. During the Spring Festival, due to the difficulty in shipping liquid chlorine, some enterprises in Shandong operated at less than full capacity, and the inventory of caustic soda factories was better than expected before the holiday. After the festival, some traders and downstream users replenished their stocks, leading to an increase in the transaction price of caustic soda.

Analysts believe that the price of caustic soda has risen recently, with this week's trend showing an increase. Recently, many downstream sectors in China have been purchasing according to their needs. However, after the holiday, the operating rates of caustic soda producers have rebounded, although they have declined slightly compared to before, they still show an upward trend. The overall supply and demand dynamics suggest that the price of caustic soda may continue to maintain a stable trend in the future, depending on the specific demand from the downstream market.