This week, the caustic soda price was weak in China (4.20-4.24)

April 24th News

I. Price Trends

According to the commodity analysis system, the caustic soda prices showed a weak trend this week. The average market price at the beginning of the week was 716 CNY/ton, and by the end of the week, it had dropped to 678 CNY/ton, a decrease of 5.31%, and a year-on-year decline of 18.23% compared to last year. On April 23, the chlor-alkali index stood at 744 points, down 3 points from the previous day, and down 65.04% from the highest point of 2128 points (on October 24, 2021). Compared to the lowest point of 707 points on February 27, 2026, it has risen by 5.23%. (Note: The period refers to the time from December 1, 2011, to the present.)

2. Market Analysis

According to the commodity analysis system, caustic soda prices have been weak this week. In Shandong, the mainstream market price for 32% ion-membrane caustic soda is around 600-700 CNY/ton. In Zhejiang, caustic soda prices are stable, with the delivered price to Xiaoshan's mainstream market for 32% ion-membrane caustic soda around 970-990 CNY/ton. In Inner Mongolia, caustic soda prices are steady, with the mainstream market price for 32% ion-membrane caustic soda (converted to 100%) around 2200-2300 CNY/ton. This week, the operating rate of caustic soda supply has increased, but inventory clearance is not significant, and there is a trend of inventory accumulation. Downstream buyers are cautious, and the pace of shipments from companies has slowed down. The purchasing enthusiasm for liquid caustic soda by alumina enterprises in Shanxi and Henan is notably weak. Currently, the prices in the surrounding markets, represented by Shandong liquid caustic soda, continue to weaken. There is no significant improvement in alumina, and the current sentiment among producers is one of waiting and watching. Spot market transactions are scarce, and purchases of caustic soda are being made cautiously.

Analysts believe that the caustic soda prices have been weak recently, and this week's trend is also soft. Recently, downstream sectors in China have mostly been purchasing according to their needs, and there has not been a substantial improvement in demand. Caustic soda producers still face significant inventory pressure, and downstream resistance remains. As the May Day holiday approaches, most companies are focusing on reducing their inventories. The overall supply and demand dynamics suggest that caustic soda prices may continue to consolidate in the coming period, depending on the specific market demand from the downstream sectors.