Price trend

According to the monitoring data of toodudu, the price of caustic soda rose, with the average market price in Shandong at the beginning of the week being 804 RMB/ton, and the average market price in Shandong at the end of the week being 816 RMB/ton, with a price increase of 1.49% and a price decrease of 24.58% compared to the same period last year.

The caustic soda commodity index on March 23 was 115.97 points, up 0.29 points from the previous day, down 56.32% from the cycle’s highest point of 265.47 points (2021-10-27), and up 78.11% from the lowest point of 65.11 points on October 09, 2020. (Note: The cycle refers to 2011-09-01 to now)

Analysis review

According to survey data from toodudu, domestic caustic soda prices rose this week. On the 24th, the average market price in Shandong was around 730-830 RMB/ton. The ex-factory quotation for 32% of the mainstream liquid caustic soda in Hebei was around 850-950 RMB/ton. The price of caustic soda on the market rose slightly. Recently, the load of caustic soda plants in some regions had been reduced, and the inventory of caustic soda had declined, the overall supply was lower than the previous period. Downstream procurement was still mainly just on demand, and the on-site trading atmosphere was general. Market transactions were relatively flat.

According to the price monitoring of toodudu, in the 11th week of 2023 (3.13-3.17), there were 1 commodity that rose, 4 commodities that fell, and 0 commodity that was flat in the chlor-alkali industry price list. The main commodity that rose was hydrochloric acid (12.50%); The main commodities falling were caustic soda (- 6.29%), PVC (- 0.94%), and calcium carbide (- 0.48%). This week’s average rise and fall was 0.89%.

Market outlook

Analysts from toodudu believe that recently, the price of caustic soda had risen slightly, while downstream alumina procurement was average, and the trading atmosphere was relatively light. Some caustic soda units reduced their load, and the inventory of caustic soda decreased. Moreover, the profit margin of chlor-alkali enterprises had decreased slightly. It is comprehensively estimated that the caustic soda will be stalemated in the later stage, depending on the downstream market demand.

If you have any questions, please feel free to contact toodudu with tdd-global@toodudu.com