SunSirs: The Price of Caustic Soda Decreased This Week (March 17-24)

Price trend

According to the commodity analysis system of SunSirs, the price of caustic soda has decreased this week. The average market price at the beginning of the week was 993 RMB/ton, and the average market price over the weekend was 963 RMB/ton, a decrease of 3.02% and a year-on-year increase of 14.1%.

On March 23, the Business Social Chemical Index was 836 points, unchanged from the previous day, a decrease of 40.29% from the highest point of 1,400 points during the cycle (October 23, 2021), and an increase of 39.80% 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 running at a lower level this week. The price of caustic soda in Shandong region was around 900-970 RMB/ton in the mainstream market of 32% ion-exchange membrane alkali. The price of caustic soda in Jiangsu region was stable, with a mainstream market price of 980-1,050 RMB/ton in 32% ion-exchange membrane alkali. The price of caustic soda in Inner Mongolia region was temporarily stable, with a mainstream market price of 3,050-3m150 RMB/ton (converted to 100%) in 32% ion-exchange membrane alkali. The overall price of caustic soda has fallen, and the main caustic soda inventory has accumulated. With the main regional liquid caustic soda procurement prices being lowered again. The main regional liquid alkali market has experienced a decline, and non aluminum demand was high, so it was necessary to wait and see. The market demand was average.

Market outlook

SunSirs’ analysts believe that in recent times, the price of caustic soda has been declining, leading to significant inventory pressure for enterprises and average downstream demand, resulting in a supply-demand game. It is expected that caustic soda will maintain a weak operating trend in the later stage, depending on downstream market demand.

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