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SunSirs: Caustic Soda Inventory Reduced and Prices Increased Sharply
September 20 2019 10:55:59SunSirs(John)

1.  the price trend

The domestic price of the caustic soda market is still relatively strong, and manufacturers in North China continue to increase the factory price. In terms of liquid chlorine, the market price in North China still maintains a relatively high level, and the market is temporarily stable. According to the monitoring data of SunSirs, due to the low inventory level, the caustic soda market pushed up this week. SunSirs monitored the overall price increase in Shandong. As of now, the price of caustic soda in Shandong is 782 RMB/ton, up 9.03% in the week.


  1. Analysis review

Product: The price of caustic soda in Shandong continued to rise. The turnover of 32% of ion-exchange membrane alkali in Shandong area was more than 830 RMB/ton. The main reason for this price increase is the low inventory level. At present, the National Day is approaching. The transportation policy of liquid chlorine in various regions is still unclear, and manufacturers have more inquiries for stock. At present, part of the Shandong Dadi plant has been restored. The Jinmao aluminum plant has been shut down for three months and the date of restoration is still unclear; Hebei Yuheng completed the repair on September 1-7, a Jiangsu Anbang and Liwen plants reduced the production.

Industry chain: At present, the market for liquid chlorine is stable. The transaction price in Shandong is about 550 RMB/ton, and that in Jiangsu is about 600 RMB/ton. The market in North China is basically stable. The price of alumina is stable. The current offer in Shandong is 2,600 RMB/ton. The offer of alumina in Henan Henan is 2580-2620 RMB/ton, and the area in Guizhou is 2500 RMB/ton. Alumina producers are reluctant to sell, and the supply of alumina will go up in the later period. The pressure of price increase is greater, and shocks are mainly stable in short-term.

  1. Market outlook

SunSirs analysts believe that the price of liquor-alkali market in North China continues to rise,  the market performance in East China and Henan is relatively good, while the domestic liquor-chlorine market mostly maintains a steady trend. 32% ionic membrane alkali in Shandong area will be around 830-850 RMB/ton.

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