Caustic Soda Prices Overall Decline in May

May 29th News

I. Price Trends

According to the commodity analysis system, the caustic soda prices in China showed a weak trend this month. At the beginning of the month, the average market price was 628 CNY/ton, and at the end of the month, it was 620 CNY/ton, a decrease of 1.27%, and a year-on-year decrease of 29.94% compared to last year. On May 28, the chlor-alkali index was 748 points, an increase of 2 points from yesterday, a decrease of 64.85% from the highest point of 2128 points (October 24, 2021), and an increase of 5.80% from the 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, the caustic soda prices were weak this month. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda is around 560-650 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 850-900 CNY/ton. In Inner Mongolia, the caustic soda prices are steady, with the mainstream market price for 32% ion-exchange membrane caustic soda (converted to 100%) around 2000-2050 CNY/ton. In May, caustic soda enterprises underwent maintenance, but due to the large inventory of caustic soda, the inventory clearance was not significant. From the perspective of downstream demand, the terminal orders in industries such as dyeing, chemical fibers, and water treatment are poor, and the market demand remains weak. Downstream enterprises are mostly in a wait-and-see attitude, with a low-price watching mentality, leading to insufficient demand and only maintaining rigid procurement. The transaction activity is low, and the shipments from enterprises are generally slow.

Analysts believe that the caustic soda prices have been weak recently, and this week's trend is also weak. Recently, downstream sectors in China have mostly been purchasing according to their needs, and there has been no substantial improvement in demand. Caustic soda companies still face significant inventory pressure, with resistance from downstream sectors. Although maintenance in the industry remains frequent in June, some previously shut-down companies have resumed operations, and there are no particularly favorable changes in supply. Downstream sectors are mainly purchasing based on their needs, and the overall supply and demand dynamics suggest that caustic soda may continue to experience a weak market trend. The specific situation will depend on the downstream market demand.