SunSirs: Last Week's Caustic Soda Prices Remained Stable (July 28-31)

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 861 RMB/ton, a 6.69% year-on-year increase.

On July 30th, the SunSirs’ Chemical Industry Index was 776 points, unchanged from the previous day. This represents a 44.57% decrease from its intra-cyclical high of 1,400 points (October 23, 2021), and a 29.77% increase from its intra-cyclical low of 598 points (April 8, 2020). (Note: The 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 this week. In Shandong Province, the mainstream market price for 32% ion-exchange membrane caustic soda was around 790-870 RMB/ton. In Jiangsu Province, prices remained stable, with the mainstream market price for 32% ion-exchange membrane caustic soda around 870-930 RMB/ton. In Inner Mongolia, prices were consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda around 2,700-2,800 RMB/ton (100% off). The market trading atmosphere was generally mediocre, with a wait-and-see attitude prevailing. Alumina purchases were primarily on-demand, and non-aluminum purchases were primarily on-demand.

Future outlook:

Analysts from SunSirs believe that the price of caustic soda has been temporarily stable in the recent times. The recent domestic downstream demand was general, and the market was in a wait-and-see mood. 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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