1、 Price trend

According to the Commodity Analysis System of the Business Society, the overall price of caustic soda has remained stable and fluctuated slightly this week. At the beginning of the week, the average market price in Shandong was 898 yuan/ton. On the weekend, the average market price in Shandong was 894 yuan/ton, a decrease of 0.45%, and a decrease of 31.23% compared to the same period last year. On May 14th, the caustic soda commodity index was 128.63, unchanged from yesterday, a decrease of 51.55% from the cycle’s highest point of 265.47 points (2021-10-27), and an increase of 97.56% 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 domestic caustic soda has stabilized and operated this week. The current average market price in Shandong region is around 810-950 yuan/ton. The mainstream factory quotation for 32% liquid alkali in Hebei region is around 850-950 yuan/ton. This week, the overall price of caustic soda is weak, and there are currently no favorable factors in terms of supply. The performance of downstream alumina is relatively weak, and the enthusiasm for picking up goods in terms of demand is average. Purchasing is mainly based on demand, and there is a strong wait-and-see sentiment in the market. The overall price of caustic soda is weak.

According to the price monitoring of the Business Society, in the 19th week of 2023 (5.8-5.12), there was a total of 1 commodity that rose, 5 commodities that fell, and 1 commodity that rose or fell to 0 on the chlor alkali industry price list. The main commodities on the rise are: calcium carbide (2.19%); The main commodities falling include hydrochloric acid (-10.26%), light soda ash (-1.92%), and PVC (-1.08%). This week’s average rise and fall was -1.68%.

Analysts from Business Society believe that in the near future, the price of caustic soda has been weak, and there is currently no positive impact on the supply side. The downstream alumina aspect has been relatively light recently, with more demand for on-demand procurement, and a wait-and-see mentality has strengthened. Overall, it is expected that the market will operate in a weak or later stage, depending on downstream market demand.