The price of caustic soda has risen this week (9.4-9.8)

1、 Price trend

According to the Commodity Analysis System of Business Society, the price of caustic soda has risen this week. At the beginning of the week, the average market price in Shandong was 795 yuan/ton, and on the weekend, the average market price in Shandong was 815 yuan/ton, with a price increase of 2.52% and a decrease of 22.53% compared to the same period last year. On September 7th, the chlor alkali index was 1124 points, an increase of 4 points compared to yesterday, a decrease of 47.18% from the cycle’s highest point of 2128 points (2021-10-24), and an increase of 57.87% from the lowest point of 712 points on January 5th, 2016. (Note: The cycle refers to the period from December 1st, 2011 to the present)

2、 Market analysis

According to the Commodity Analysis System of Business Society, the overall price of domestic caustic soda has slightly increased this week. The current average market price in Shandong region is around 780-830 yuan/ton. The mainstream factory quotation for 32% liquid alkali in Hebei region is around 820-840 yuan/ton. This week, the overall price of caustic soda has risen, with a slight contraction in supply. In terms of downstream alumina, there has been a recovery compared to the previous period, and procurement has been more active compared to the previous period. The market has a clear intention of boosting prices.

According to the price monitoring of the Business Society, in the 35th week of 2023 (8.28-9.1), there were a total of 5 products that rose or fell in the chlor alkali industry price list, 0 products that fell, and 2 products that rose or fell to 0. The main commodities that have increased include: baking soda (10.13%), light soda ash (7.33%), and flake soda (2.90%); This week’s average rise and fall was 3.24%.

Analysts from Business Society believe that in the near future, the price of caustic soda has risen this week, and the supply side has narrowed. There is still a demand for replenishment of downstream alumina in the near future. Overall, it is expected that caustic soda may strengthen its operating market in the future, depending on downstream market demand.