SunSirs: On August 27, the Price of Caustic Soda Rose Firmly

Price trend

According to the SunSirs commodity analysis system, caustic soda prices rose on August 27th. The average market price in Shandong Province was 882 RMB/ton, a 9.16% year-on-year increase.

The SunSirs Chemical Industry Index was 772 points on August 26th, up 1 point from the previous day, down 44.86% from its cyclical high of 1,400 points (October 23, 2021), and up 29.10% from its cyclical low of 598 points on April 8, 2020. (Note: The 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 were rising steadily. In Shandong Province, the mainstream market price for 32% ion-exchange membrane caustic soda was around 800-910 RMB/ton. In Jiangsu Province, prices were stable, with the mainstream market price for 32% ion-exchange membrane caustic soda being around 870-930 RMB/ton. In Inner Mongolia, prices were consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda being around 2,700-2,800 RMB/ton (convert into 100%). In Shandong Province, caustic soda prices were rising. Previously overhauled equipment had not yet resumed operation, so companies were under minimal inventory pressure. Major downstream companies were raising the price of liquid caustic soda, leading to rising prices across the region. Alumina purchases were primarily on-demand, while non-aluminum purchases were primarily on-demand.

Market outlook

Analysts of SunSirs believe that caustic soda prices have recently seen a slight increase, maintaining a firm market. Domestic downstream demand remained strong, and caustic soda manufacturers faced minimal inventory pressure, with downstream companies expected to undergo maintenance. Next week, maintenance facilities in Northwest and Southwest China will resume operations, leading to an increase in load. Production will also be reduced in North China and East China, leading to a slight increase in load. Based on the balance of supply and demand, caustic soda prices are expected to consolidate in the coming period, depending on downstream market demand.

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