SunSirs: Caustic Soda Prices Were Weaker Last Week (October 27-30)

Price trend:

According to the SunSirs' commodity analysis system, caustic soda prices were weak last week. The average market price at the beginning of the week was 842 RMB/ton, and the average market price at the end of the week was 838 RMB/ton, a decrease of 0.48%, and a year-on-year decrease of 19.19%.

On October 29th, the SunSirs Chemical Index was 755 points, down 2 points from the previous day, down 46.07% from the cycle high of 1,400 points (October 23, 2021), and up 26.25% from the cycle low of 598 points (April 8, 2020). (Note: The cycle refers to December 1, 2011 to present.)

Analysis review

According to data from the SunSirs' commodity analysis system, caustic soda prices were weak last week. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda was around 750-880 RMB/ton. In Jiangsu, prices remained stable at around 890-1000 RMB/ton. In Inner Mongolia, prices consolidated at around 2700-2800 RMB/ton (converted to 100%). In Shandong, increased supply and no improvement in fundamentals led to a weakening price trend. Downstream alumina prices recently fell, resulting in pessimistic sentiment among distributors. Some companies were facing significant operational pressure and were purchasing caustic soda primarily on an as-needed basis.

Market outlook

According to analysts at SunSirs, caustic soda prices were trending weakly recently. Domestic downstream buyers were mostly purchasing on an as-needed basis, resulting in ample supply from caustic soda producers. Considering the supply and demand game, caustic soda prices are expected to maintain consolidating in the near future, depending on downstream market demand.

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