SunSirs: Caustic Soda Prices Rose on February 25

Price trend

According to data from SunSirs' commodity analysis system, caustic soda prices rose after the Spring Festival. On February 25th, the average market price of caustic soda was 634 RMB/ton, up 1.93% from the previous trading day.

On February 24th, the SunSirs Chemical Index was 785 points, down 2 points from the previous day, down 43.93% from the cycle high of 1,400 points (October 23, 2021), and up 31.27% from the cycle low of 598 points (April 8, 2020). (Note: The cycle refers to December 1, 2011 to present.)

Market Analysis

According to data from SunSirs' commodity analysis system, caustic soda prices are trending upwards. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda is around 600-670 RMB/ton. In Zhejiang, prices are stable, with the mainstream market price for 32% ion-exchange membrane caustic soda around 850-970 RMB/ton. In Inner Mongolia, prices are consolidating, with the mainstream market price for 32% ion-exchange membrane caustic soda around 2,050-2,150 RMB/ton (converted to 100%). Following the Spring Festival holiday, some traders and downstream users replenished their stocks, and rising liquid chlorine prices boosted chlor-alkali profits. Some caustic soda companies had low inventory levels, leading to price increases. However, as downstream companies complete their restocking, the overall upward potential for caustic soda prices is limited.

Market outlook

According to analysts at SunSirs, caustic soda prices have been trending upward recently. After the holiday, the price of liquid caustic soda in Shandong rose in the short term due to restocking demand. However, as restocking is completed, it is expected that caustic soda prices will continue to consolidate in the later period, depending on downstream market demand.

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