1、 Price trend

According to the Commodity Analysis System of Business Society, the price of caustic soda has remained stable and fluctuated slightly this week. The average market price in Shandong from the beginning of the week to the weekend was 752 yuan/ton, a 30.37% decrease compared to the same period last year. On August 10th, the chlor alkali index was 986 points, unchanged from yesterday, a decrease of 53.67% from the cycle’s highest point of 2128 points (2021-10-24), and an increase of 38.48% from the lowest point of 712 points on January 5th, 2016. (Note: The cycle refers to the period from December 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 700-780 yuan/ton. The mainstream factory quotation for 32% liquid alkali in Hebei region is around 750-800 yuan/ton. The overall price of caustic soda has not changed much this week, and the supply has slightly narrowed. In terms of downstream alumina, the short-term demand for the main downstream is average, but the overall demand is weak, and more purchases are made according to demand. The supply and demand game, the price of caustic soda maintains a consolidation operation market.

According to the price monitoring of the Business Society, in the 31st week of 2023 (7.31-8.4), there were a total of 4 products that rose, 0 products that fell, and 3 products that rose or fell to 0 on the chlor alkali industry price list. The main commodities that have increased include: light soda ash (2.23%), PVC (1.10%), and flake soda ash (0.77%); This week’s average increase or decrease was 0.67%.

Analysts from Business Society believe that in the near future, the price of caustic soda has remained stable with minor fluctuations, and the supply side has narrowed. Downstream alumina still purchases more on demand in the near future. The mentality of the industry is average, and it is difficult to have substantial positive results in the downstream supply and demand game. It is expected that the overall market situation will be consolidated in the later stage, depending on the downstream market demand.