Price trend

According to the commodity analysis system of SunSirs, the price of caustic soda rose last week. The average market price at the beginning of the week was 861 RMB/ton, and the average market price over the weekend was 863 RMB/ton, with a price increase of 0.23% and a year-on-year increase of 5.5%.

On July 17th, the SunSirs Chemical Index was 770 points, a decrease of 1 point from the previous day, a decrease of 45.00% from the highest point of 1,400 points during the cycle (October 23, 2021), and an increase of 28.76% from the lowest point of 598 points on April 8, 2020. (Note: The cycle refers to the period from December 1, 2011 to present)

Analysis review

According to the commodity analysis system of SunSirs, the price of caustic soda remained strong last week. The price of caustic soda in Shandong region was around 810-900 RMB/ton in the mainstream market of 32% ion-exchange membrane alkali. The price of caustic soda in Jiangsu region was stable, with a mainstream market price of 870-930 RMB/ton in 32% ion-exchange membrane alkali. The price of caustic soda in Inner Mongolia region was stable, with a mainstream market price of 2,700-2,800 RMB/ton (converted to 100%) in 32% ion-exchange membrane alkali. From the perspective of Shandong region, the market supply had decreased compared to the previous period, but alumina was mostly purchased on demand, and non aluminum mainly purchased on demand.

Future outlook:

SunSirs analysts believe that in recent times, caustic soda prices had been operating strongly. Domestic downstream demand had been average, and caustic soda prices had remained stable. However, downstream demand increased as equipment maintenance gradually recovered and market supply increased. As prices rose, the downstream market was resistant to the high price. It is expected that caustic soda will maintain a consolidating market in the later stage, depending on downstream market demand.

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