1、 Price trend

According to the Commodity Analysis System of Business Society, the overall price of caustic soda remained weak this week. On June 20th, the average market price in Shandong was 818 yuan/ton, while on June 27th, the average market price in Shandong was 792 yuan/ton, a decrease of 3.18% and a decrease of 36.74% compared to the same period last year. On June 26th, the caustic soda commodity index was 115.40, unchanged from yesterday, a decrease of 56.53% from the cycle’s highest point of 265.47 points (2021-10-27), and an increase of 77.24% 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 was weak this week. The current average market price in Shandong region is around 720-800 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 currently, the supply of caustic soda enterprises is relatively sufficient. 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 25th week of 2023 (6.19-6.23), there were 0 products that rose or fell in the chlor alkali industry price list, 2 products that fell, and 5 products that rose or fell to 0. The main commodities falling include caustic soda (-1.92%) and flake soda (-0.40%). This week’s average increase or decrease was -0.33%.

Analysts from Business Society believe that in the near future, the price of caustic soda has been weak, and the overall supply is relatively sufficient. Downstream alumina still purchases more on demand in the near future. There is no favorable support, and the supply and demand game comprehensively predicts a weak operating market in the later stage, depending on the downstream market demand.