This Week's Caustic Soda Prices Remain Firm (3.16-3.20)

March 20 news

I. Price Trends

According to the commodity analysis system, the caustic soda prices remained firm this week. The average market price at the beginning of the week was 688 CNY/ton, and by the end of the week, it had risen to 700 CNY/ton, an increase of 1.74%, but a decrease of 28.5% compared to the same period last year. On March 19, the chlor-alkali index stood at 765 points, up 4 points from the previous day, down 64.05% from the highest point of 2128 points (on October 24, 2021), and up 8.20% from the lowest point of 707 points on February 27, 2026. (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 remained firm this week. In Shandong, the mainstream market price for 32% ion-membrane caustic soda is around 650-720 CNY/ton. In Zhejiang, the caustic soda prices are stable, with the mainstream market price for 32% ion-membrane caustic soda around 930-960 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 2250-2350 CNY/ton. This week, caustic soda inventories in China's enterprises have decreased, and external orders continue, leading to a rise in caustic soda prices. The phased supply-demand imbalance of downstream alumina has caused price increases, and there is a general sentiment of holding back from selling among enterprises. It is expected that the alumina market will experience fluctuating operations in the later period.

Analysts believe that the caustic soda prices have been firm recently, and this week, the prices are expected to remain strong. The recent increase in alumina prices in China is beneficial for caustic soda. Considering the supply and demand dynamics, it is estimated that caustic soda prices may continue to be firm, depending on the downstream market demand.