This Week's Caustic Soda Prices Consolidate (5.18-5.22)

May 22nd News

I. Price Trends

According to the commodity analysis system, the caustic soda prices in China remained stable this week. The average market price at the beginning of the week was 624 CNY/ton, and by the end of the week, it had decreased to 620 CNY/ton, a decline of 0.64%, and a year-on-year decrease of 28.82% compared to last year. On May 21st, the chlor-alkali index stood at 743 points, unchanged from the previous day. It has dropped by 65.08% from its highest point of 2128 points (on October 24, 2021), and increased by 5.09% from its lowest point of 707 points on February 27, 2026. (Note: The period refers to the time from December 1, 2011, to the present.)

II. Market Analysis

According to the commodity analysis system, caustic soda prices remained generally stable this week. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda is around 570–670 CNY per ton. In Zhejiang, caustic soda prices have stabilized, with the delivered-to-Xiaoshan mainstream market price for 32% ion-exchange membrane caustic soda ranging from approximately 850 to 900 CNY per ton. In Inner Mongolia, caustic soda prices have been consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda hovering around 2,050–2,100 CNY per ton (converted to 100% concentration). This week, supply and demand for caustic soda showed no significant improvement; inventory clearance by enterprises remained sluggish, and enterprises’ shipments were generally moderate. Downstream buyers are cautious, leading to a slower pace of shipments from producers. Coupled with the off-season for demand, it will be difficult to see an improvement in operating rates in the short term. Currently, prices in surrounding markets—led by liquid caustic soda in Shandong—remain weak and are consolidating. As for alumina, there has been no noticeable improvement so far; production companies are currently adopting a wait-and-see attitude, with very few spot transactions taking place in the market, making them relatively cautious about purchasing caustic soda.

Analysts believe that the caustic soda prices will remain stable in the near term, this week. Recently, downstream sectors in China have been purchasing according to their needs, and there has not been a substantial improvement in demand. Caustic soda enterprises still face significant inventory pressure, with resistance from downstream sectors. Although maintenance support has led to minor adjustments in the caustic soda market in East China, overall, there is a lack of momentum for price increases. Considering the supply and demand dynamics, it is expected that caustic soda will continue to consolidate in the coming period, depending on the specific demands of the downstream market.