SunSirs: Demand Followed Up After Holiday, and Caustic Soda Prices Rose

Price trend

According to SunSirs' commodity analysis system, caustic soda prices were trending upwards. The average market price at the beginning of the week was 622 RMB/ton, and the average market price at the end of the week was 654 RMB/ton, an increase of 5.14%, but a decrease of 30.57% compared to the same period last year.

On February 26th, the SunSirs Chemical Index was 789 points, up 3 points from the previous day, down 43.64% from the highest point of 1,400 points (October 23, 2021) within the cycle, and up 31.94% from the lowest point 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 rose this week. In Shandong, the mainstream market price for 32% ion-exchange membrane caustic soda was around 600-680 RMB/ton. In Jiangxi, the market for liquid caustic soda fluctuated relatively little, with the mainstream transaction price for 32% liquid caustic soda around 710-780 RMB/ton. In Inner Mongolia, caustic soda prices consolidated, with the mainstream market price for 32% ion-exchange membrane caustic soda around 2,050-2,150 RMB/ton (converted to 100%). During the Spring Festival, difficulties in selling liquid chlorine affected the operating rates of some enterprises in Shandong, resulting in lower-than-expected inventory levels at caustic soda plants. After the holiday, some traders and downstream consumers replenished their stocks, leading to a shift in the price focus of caustic soda transactions upwards.

Market Outlook:

According to analysts at SunSirs, caustic soda prices have been rising recently this week. Domestic downstream buyers are mostly purchasing on an as-needed basis. However, after the holiday, the operating rate of caustic soda enterprises has rebounded. Although it has declined slightly compared to before, it is still showing an upward trend. Considering the supply and demand dynamics, it is expected that caustic soda prices will continue to consolidate in the later period, depending on the demand in the downstream market.

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