Price trend

According to the SunSirs commodity analysis system, caustic soda prices remained stable last week. The average market price from the beginning of the week to the end of the week was 848 RMB/ton, down 18.54% year-on-year.

On October 23rd, the SunSirs Chemical Industry Index was 755 points, up 1 point from the previous day, down 46.07% from its intra-cyclical high of 1,400 points (October 23, 2021), and up 26.25% from its intra-cyclical low of 598 points on April 8, 2020. (Note: The intra-cyclical period refers to the period from December 1, 2011 to the present.)

Analysis review 

According to the SunSirs commodity analysis system, caustic soda prices remained stable last week. In Shandong Province, the mainstream market price for 32% ion-exchange membrane caustic soda was around 770-890 RMB/ton. In Jiangsu Province, prices were stable, with the mainstream market price for 32% ion-exchange membrane caustic soda around 890-1000 RMB/ton. In Inner Mongolia, prices are consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda around 2,700-2,800 RMB/ton (Equivalent to 100%). In Shandong Province, supply and demand pressures were minimal, with no significant fluctuations in supply from companies. The recent decline in downstream alumina prices had fueled pessimism among distributors, and some companies, facing significant operating pressure,were primarily purchasing on demand.

Market outlook

Analysts from SunSirs believe that the price of caustic soda was running in a certain direction recently. Domestic downstream companies mostly purchased on demand recently, and caustic soda companies were under little pressure from supply and demand. Based on the supply and demand game, it is expected that caustic soda will maintain a consolidation trend in the later period, depending on the downstream market demand.

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