1、 Price trend

According to the monitoring data of business news agency, the price of caustic soda went up. At the beginning of the week, the average price of Shandong market was about 500 yuan / ton, and at the end of the week, the average price was 530 yuan / ton, up 6%, 6.53% compared with the same period last year. The commodity index of caustic soda on June 3 was 75.18, up 1.08 points from yesterday, down 63.66% from 206.87 points (November 14, 2017), the highest point in the cycle, and up 15.47% from 65.11 points, the lowest point on October 9, 2020（ Note: period refers to the period from September 1, 2011 to now

2、 Market analysis

The price of caustic soda went up this week. The price of caustic soda in Shandong Province is relatively strong. At present, the mainstream ex factory price of 32% caustic soda is 510-570 yuan / ton. The downstream demand was slightly better than before, and the price of purchasing liquid caustic soda from downstream alumina increased. It is expected that caustic soda will be mainly used in the subsequent finishing operation. In Hebei area, the market of caustic soda mainly fluctuates in a narrow range. At present, the mainstream ex factory price of 32% caustic soda is 470-650 yuan / ton. It is expected that caustic soda will continue to be consolidated in the future.

Downstream: due to the low alumina caustic soda inventory and strong market demand, caustic soda manufacturers are actively shipping, and the trading atmosphere is acceptable. There was a good demand for caustic soda, which had a positive impact on the market. The delivery of caustic soda was smoother than before, and the price went up.

According to the price monitoring of business association, in the price fluctuation list of chlor alkali industry in the 21st week of 2021 (5.24-5.28), there was one commodity rising, three commodities falling, and one commodity falling to zero. The main commodities rising were caustic soda (4.26%); The main commodities falling were calcium carbide (- 2.93%), hydrochloric acid (- 2.85%) and PVC (- 0.41%). This week’s average rise or fall was – 0.39%.

Business analysts believe that in the near future, due to the inventory demand of alumina enterprises in Shandong, the market demand is stronger than before. But now the overall inventory of caustic soda enterprises is sufficient, and other areas mainly wait and see. It is expected that caustic soda will continue to be consolidated and operated in the future, depending on the downstream market demand.