SunSirs: The Price of Caustic Soda Was Improving This Week (September 20-24)

Price trend

According to the monitoring data of SunSirs, the price of caustic soda was operating in a consolidation. The market price in Shandong at the beginning of the week was 1,022.5 RMB/ton, and the average price in the Shandong market on weekends was 1,102.5 RMB/ton. The price increased by 7.82%, and the price increased by 143.65% over the same period last year.

On September 23, the caustic soda commodity index was 157.91, an increase of 2.51 points from previous day, a decrease of 23.67% from the cycle high of 206.87 points (2017-11-14), and an increase of 142.53% from the lowest point of 65.11 on October 9, 2020. (Note: Period refers to 2011-09-01 to present)

Analysis review

The price of caustic soda was consolidating this week. The price of caustic soda in Shandong was improving, and the mainstream ex-factory price of 32% caustic soda was 1,080-1,200 RMB/ton. The price of caustic soda in Hebei rose, and the mainstream ex-factory price of 32% caustic soda was between 1,150-1,350 RMB/ton. It is expected that caustic soda will continue to operate well.

Upstream: Domestic liquid chlorine prices rose this week. Downstream: Alumina companies were more active in purchasing caustic soda, but the operating rate of caustic soda manufacturers declined. The supply of caustic soda decreased and the price of caustic soda rose.

According to the price monitoring of SunSirs, in the 37th week of 2021 (9.13-9.17), there were 4 kinds of commodities rising in the price list of chlor-alkali industry, 0 kind of commodity falling, and 1 kind having a rise or fall of zero. The main commodities that rose were: caustic soda (37.16%), PVC (2.66%), and calcium carbide (1.23%); the average increase or decrease this week was 8.32%.

Market outlook

SunSirs analysts believe that due to environmental protection factors, manufacturers in Shandong have limited production and reduced their supply. The price of caustic soda has risen. The recent purchase of downstream alumina has been more active than before. It is expected that caustic soda will continue to operate well in the future, depending on the downstream market demand.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.