SunSirs: Caustic Soda Prices Remain Strong This Week (August 18-22)

Price trend

According to the SunSirs commodity analysis system, caustic soda prices rise this week. The average market price was 860 RMB/ton at the beginning of the week and 862 RMB/ton at the weekend, a 0.23% increase and a 7.08% year-on-year increase.

On August 21st, the SunSirs Chemical Industry Index was 771 points, unchanged from the previous day. This represents a 44.93% decrease from its cyclical high of 1,400 points (October 23, 2021), and a 28.93% increase from its cyclical low of 598 points on 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 rise over the weekend this week. In Shandong Province, the mainstream market price for 32% ion-exchange membrane caustic soda is around 800-890 RMB/ton. In Jiangsu Province, prices are stable, with the mainstream market price for 32% ion-exchange membrane caustic soda around 870-930 RMB/ton. In Inner Mongolia, prices are consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda around 2700-2800 RMB/ton (convert to 100%). In Shandong Province, caustic soda prices remains stable during the week, with a slight increase over the weekend. Due to the fact that equipment that had been undergoing maintenance has not yet been restored, companies are facing minimal inventory pressure. Major downstream companies are raising the price of liquid caustic soda, leading to rising prices across the region. Alumina purchases are primarily on-demand, and non-aluminum purchases are primarily on-demand.

Market outlook

Analysts from SunSirs believe that recently, the price of caustic soda has been rising slightly and the price is running strong. The recent domestic downstream demand is still good, the inventory pressure of caustic soda companies is not great, and downstream companies are expected to carry out maintenance. There is a game between supply and demand. It is generally expected that caustic soda will maintain a strong market in the later period, depending on the downstream market demand.

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