SunSirs: Caustic Soda Prices Rose This Week (February 14-18)

Price trend

According to the monitoring data of SunSirs, the price of caustic soda rose this week. The average price in Shandong market at the beginning of the week was 1,092.5 RMB/ton, and the average price in Shandong market at the weekend was about 1,130 RMB/ton, the price increased by 3.43%, and the price increased by 139.15% compared with the same period last year.

On February 17, the caustic soda commodity index was 160.07, an increase of 1.8 points from previous day, a decrease of 39.70% from the highest point in the cycle of 265.47 points (2021-10-27), and an increase of 145.85% from the lowest point of 65.11 points on October 9, 2020. (Note: The cycle refers to 2011-09-01 to the present)

Analysis review

The price of caustic soda rose this week. As of the 18th, the average market price in Shandong was about 1,050-1,150 RMB/ton. The mainstream ex-factory quotation of 32% liquid caustic soda in Hebei was around 1,150-1,250 RMB/ton. The main reason for the increase was the maintenance of the main caustic soda plant, the reduction in inventory, and the positive downstream demand than before.

According to the price monitoring of SunSirs, in the 06th week of 2022 (2.7-2.11), there were 3 commodities that rose in the price fluctuation list of the chlor-alkali industry, 2 commodities fell, and 0 commodity was unchanged. The main commodities that rose were: caustic soda (10.08%), light soda ash (5.06%), PVC (3.84%); the main commodities that fell were: hydrochloric acid (-11.36%), calcium carbide (-1.98%).The average change for the week was 1.13%.

Market outlook

The analyst of SunSirs believes that recently, the inventory of caustic soda manufacturers has decreased, the downstream alumina enterprises have a positive demand, and the price of caustic soda has increased. It is generally expected that caustic soda will perform well in the future, depending on the downstream market demand.

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