Price trend

According to the commodity analysis system of SunSirs, the price of caustic soda has increased this week. The average market price at the beginning of the week was 936 RMB/ton, and the average market price over the weekend was 971 RMB/ton, with a price increase of 3.74% and a year-on-year increase of 24.33%.

On March 6th, the Business Social Chemical Index was 844 points, a decrease of 1 point from the previous day, a decrease of 39.71% from the highest point of 1,400 points during the cycle (2021-10-23), and an increase of 41.14% from the lowest point of 598 points on April 8th, 2020. (Note: The cycle refers to the period from December 1, 2011 to present)

Analysis review

According to the commodity analysis system of SunSirs, the price of caustic soda has been rising this week. The price of caustic soda in Shandong region was around 930-1,050 RMB/ton in the mainstream market of 32% ion-exchange membrane alkali. The price of caustic soda in Jiangsu region was stable, and the mainstream market price of 32% ion-exchange membrane alkali was around 950-1,050 RMB/ton. The price of caustic soda in Inner Mongolia region was temporarily stable, and the mainstream market price of 32% ion-exchange membrane alkali was around 3,100-3,200 RMB/ton (converted to 100%). The overall upward trend of caustic soda prices this week was mainly due to manufacturers stopping for maintenance, which has eased the pressure on caustic soda inventory. The downstream price of alumina was basically maintained at 3,200-3,450 RMB/ton, and the demand for caustic soda was still acceptable.

Market outlook

SunSirs’ analysts believe that recently, the price of caustic soda has risen and the operating market has improved due to enterprise maintenance and inventory pressure. Downstream demand was still acceptable, and the supply and demand gamed. It is expected that caustic soda will maintain its upward trend in the later period, depending on downstream market demand.

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