1、 Price trend

According to the Commodity Analysis System of Business Society, the overall price of caustic soda was weak this week. At the beginning of the week, the average market price in Shandong was 792 yuan/ton. On July 10th, the average market price in Shandong was 780 yuan/ton, a decrease of 1.52%, and a decrease of 36.27% compared to the same period last year. On July 9th, the caustic soda commodity index was 113.38, unchanged from yesterday, a decrease of 57.29% from the cycle’s highest point of 265.47 points (2021-10-27), and an increase of 74.14% from the lowest point of 65.11 points on October 9th, 2020. (Note: The cycle refers to the period from September 1st, 2011 to the present)

2、 Market analysis

According to the Commodity Analysis System of Business Society, the overall price of caustic soda in China is weak this week. The current average market price in Shandong region is around 690-800 yuan/ton. The mainstream factory quotation for 32% liquid alkali in Hebei region is around 720-900 yuan/ton. This week, the overall price of caustic soda has declined, and although there have been equipment maintenance by caustic soda enterprises, the overall results are average. The short-term demand for downstream alumina is average, with more purchases made on demand and a supply-demand game. The price of caustic soda remains weak.

According to the price monitoring of the Business Society, in the 27th week of 2023 (7.3-7.7), there was one commodity that rose, three commodities that fell, and three commodities that rose or fell to zero in the chlor alkali industry price list. The main commodities that have risen are: calcium carbide (0.58%); The main commodities falling are: flake alkali (-1.20%), caustic soda (-0.51%), and PVC (-0.27%). This week’s average increase or decrease was -0.2%.

Analysts from Business Society believe that in the near future, the price of caustic soda has been weak, and overall inventory in the supply side is high. Downstream alumina is still purchasing more on demand, and the ordering sentiment is average. The supply and demand game comprehensively predicts the future or weak operating market, depending on downstream market demand.