August 31st news
I. Price Trends
According to the commodity analysis system, the caustic soda prices in China showed a downward trend this month. The average market price at the beginning of the month was 643 CNY/ton, and at the end of the month, it was 637 CNY/ton, a decrease of 0.93%, down 27.94% compared to the same period last year. On August 30, the chlor-alkali index stood at 714 points, unchanged from yesterday, down 66.45% from the highest point of 2128 points (October 24, 2021), and up 0.99% 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.)
2. Market Analysis
According to the commodity analysis system, the caustic soda prices have generally decreased this month. In Shandong, the mainstream market quotation for 32% ion-exchange membrane caustic soda is around 580-670 CNY/ton. In Zhejiang, the caustic soda prices are stable, with the mainstream market quotation for 32% ion-exchange membrane caustic soda delivered to Xiaoshan at around 840-860 CNY/ton. In Inner Mongolia, the caustic soda prices are consolidating, with the mainstream market quotation for 32% ion-exchange membrane caustic soda (converted to 100%) at around 2000-2100 CNY/ton. The regional market for liquid caustic soda in China has not seen much fluctuation, mostly maintaining a trend of stability with slight weakness. Next week, there is an expectation that the load of chlor-alkali production in Shandong will increase, possibly remaining below 81%, and the operation may fluctuate due to the influence of downstream chlorine-consuming industries. As the losses in downstream industries expand, some aluminum plants are moderately restocking based on their inventory levels, while alumina plants are not very active in spot trading, with relatively cautious quotations. The demand from non-aluminum downstream sectors remains weak, with purchases mainly made as needed, and there is no improvement in the situation, putting pressure on the market.
Analysts believe that in the recent period, the caustic soda price in China has been showing a weak trend, with moderate demand from the downstream alumina sector. The tug-of-war between bulls and bears has intensified, and the market's wait-and-see sentiment continues to rise. The alumina price has remained in a steady decline, and the estimated increase is limited. Considering the supply and demand dynamics, it is expected that the caustic soda market may tend to consolidate, depending on the specific demand from the downstream market.
