Caustic Soda Prices Decline in April

April 30th News

I. Price Trends

According to the commodity analysis system, the caustic soda price showed a weak trend this month. The average market price at the beginning of the month was 738 CNY/ton, and at the end of the month, it was 628 CNY/ton, with a price decrease of 14.91%, and a year-on-year decrease of 22.18% compared to last year. On April 29, the chlor-alkali index in China was 737 points, down 2 points from the previous day, down 65.37% from the highest point of 2128 points (October 24, 2021), and up 4.24% 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, the caustic soda prices in China were weak this month. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda is around 540-640 CNY/ton. In Zhejiang, the caustic soda prices are stable, with the mainstream market price for 32% ion-exchange membrane caustic soda delivered to Xiaoshan around 720-850 CNY/ton. In Inner Mongolia, the caustic soda prices are consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda (converted to 100%) around 2200-2300 CNY/ton. This month, the operating rate of caustic soda supply has increased, but there is no significant inventory clearance, and an inventory accumulation trend is observed. Downstream buyers are cautious, and the pace of shipments from enterprises has slowed down. The purchasing enthusiasm for liquid caustic soda by alumina enterprises in Shanxi and Henan is notably weak. Currently, the market prices represented by Shandong liquid caustic soda continue to weaken. There is no significant improvement in alumina, and the current producers have a strong wait-and-see attitude. Spot transactions in the market are scarce, and the procurement of caustic soda remains cautious.

Analysts believe that the caustic soda prices have been relatively weak recently, this week. Recently, most downstream sectors in China have been purchasing according to demand, without any substantial improvement in demand. Caustic soda enterprises still face significant inventory pressure, with resistance from downstream sectors. As the May Day holiday approaches, most companies are focusing on reducing their inventories. The overall supply and demand dynamics suggest that caustic soda may continue to show a weak trend later, depending specifically on the demand from the downstream market.