SunSirs: This Week, Caustic Soda Prices Have Risen (March 10-14)

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 979 RMB/ton, and the average market price over the weekend was 993 RMB/ton, with a price increase of 1.43% and a year-on-year increase of 23.82%.

On March 13th, the Business Social Chemical Index was 840 points, a decrease of 1 point from the previous day, a decrease of 40.00% from the highest point of 1,400 points during the cycle (October 23, 2021), and an increase of 40.47% from the lowest point of 598 points on April 8, 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 is around 960-1,050 RMB/ton in the mainstream market of 32% ion-exchange membrane alkali. The price of caustic soda in Jiangsu region is stable, and the mainstream market price of 32% ion-exchange membrane alkali is around 950-1,050 RMB/ton. The price of caustic soda in Inner Mongolia region is temporarily stable, and the mainstream market price of 32% ion-exchange membrane alkali is around 3,050-3,150 RMB/ton (converted to 100%). The overall increase in caustic soda prices is mainly due to manufacturers stopping for maintenance, which has eased the pressure on caustic soda inventory. But with the rise in prices, downstream consumers are resistant, and downstream alumina mainly purchases caustic soda on demand.

Market outlook

Analysts from SunSirs believe that in recent times, the price of caustic soda has risen and the operating market has improved. Enterprises are undergoing maintenance, inventory pressure has been alleviated, and downstream demand is still acceptable. But as prices rise, downstream resistance and supply-demand competition arise. It is expected that caustic soda will maintain a consolidating market in the later stage, depending on downstream market demand.

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