The Caustic Soda Market Operated Weakly in April

According to monitoring data from SunSirs, the caustic soda market was weak in April. At the beginning of the month, the average price of caustic soda in Shandong region was 887 yuan/ton. At the end of the month, the price of caustic soda in Shandong region was 807 RMB/ton, a decrease of 9.02% and an increase of 2.15% compared to the same period last year.

On April 29th, the Business Social Chemical Index was 789 points, a decrease of 1 point from the previous day, a decrease of 43.64% from the highest point of 1,400 points during the cycle (2021-10-23), and an increase of 31.94% 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 survey data from SunSirs, the overall price of caustic soda was weak. The price of caustic soda in Jiangsu region was temporarily stable, with a mainstream market price of around 870-980 yuan/ton for 32% ion exchange membrane alkali. The price of caustic soda in Shandong region was running weakly, with a mainstream market price of around 770-850 yuan/ton for 32% ion exchange membrane alkali. In early April, the overall price of caustic soda fell, and the main caustic soda inventory accumulated. With the main regional liquid caustic soda procurement prices once again lowered. The main regional liquid alkali market had experienced a decline, and non aluminum demand was high, so it was necessary to wait and see. The market demand was average. In the middle of the month, the price of caustic soda stopped falling and rebounded, and downstream replenishment was carried out in stages, resulting in an upward trend in caustic soda prices. At the end of the month, caustic soda operated weakly, with sufficient supply from caustic soda enterprises and average downstream demand, resulting in a weak operating trend in caustic soda prices.

Market outlook

SunSirs’ analysts believe that recently, the price of caustic soda has been weak and the domestic downstream demand was average, with no positive support and a supply-demand game. It is expected that caustic soda will maintain a consolidating market in the later stage, depending on downstream market demand.