This week, caustic soda prices were consolidating (March 2-6)

March 6th, news:

I. Price Trends

According to the commodity analysis system, the caustic soda prices showed a consolidation trend this week. The average market price from the beginning to the end of the week was 654 CNY/ton, a decrease of 31.3% compared to the same period last year. On March 5th, the chemical index was 848 points, an increase of 20 points from the previous day, a decrease of 39.43% from the highest point of 1,400 points (on October 23, 2021), and an increase of 41.81% 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, caustic soda prices have remained stable this week. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda is around 600–680 CNY per ton; in Zhejiang, prices have stayed steady, with the mainstream market quote for 32% ion-exchange membrane caustic soda hovering around 850–950 CNY per ton. In Inner Mongolia, caustic soda prices have also remained stable, with the mainstream market quote for 32% ion-exchange membrane caustic soda ranging from approximately 2,050 to 2,150 CNY per ton (based on 100% concentration). This week, caustic soda supply has rebounded as production resumed following the holiday period, but inventory clearance among enterprises remains sluggish. A temporary supply-demand imbalance in downstream alumina has driven up prices, yet overall, the market still faces pressure from oversupply. As the market returns to rationality, demand-driven procurement of caustic soda has become more prevalent. It is expected that alumina prices will continue to fluctuate in the coming period.

Analysts believe that in the recent period, this week's caustic soda prices have been consolidating. Recently, downstream sectors in China have mostly been purchasing according to demand, with no substantial improvement in demand. Although the current overseas situation may be beneficial for caustic soda and chemical product prices, given the significant supply pressure of caustic soda, it is comprehensively expected that the later trend of caustic soda may continue to consolidate, depending specifically on the demand from the downstream market.