1、 Price trend

According to monitoring data from Business Society, the overall price of caustic soda stabilized in May. At the beginning of the month, the average price in the Shandong market was 790 yuan/ton, and at the end of the month, the average price in the Shandong market was around 792 yuan/ton. The overall price increased by 0.25%, and the price decreased by 11.8% compared to the same period last year. On May 30th, the chlor alkali index was 1013 points, unchanged from yesterday, a decrease of 52.40% from the highest point in the cycle of 2128 points (2021-10-24), and an increase of 42.28% from the lowest point of 712 points on January 5th, 2016. (Note: The cycle refers to 2011-12-01 present)

2、 Market analysis

According to survey data from Business Society, the overall price of caustic soda has stabilized this month. At present, the price of caustic soda in Jiangsu region is temporarily stable, with a mainstream market quotation of 32% ion exchange membrane caustic soda at around 860-950 yuan/ton. The price of caustic soda in Shandong region is currently stable, with a mainstream market quotation of around 710-820 yuan/ton for 32% ion exchange membrane caustic soda.

In early May, the price of caustic soda stabilized and operated, with downstream alumina mainly being purchased on demand. There is no favorable support for the stable operation of liquid alkali prices. In mid to late May, the trading focus of the Shandong liquid alkali market increased, and the overall inventory of the market was not high. The domestic aluminum oxide prices in the downstream continued to be stable, medium, and strong. The prices of adhesive companies continue to remain stable, with limited market fluctuations.

According to the price monitoring of Business Society, in the 21st week of 2024 (5.20-5.24), there were a total of 3 products that rose, 1 product that fell, and 3 products that rose or fell to 0 on the chlor alkali industry price list. The main rising commodities include: light soda ash (1.91%), PVC (1.28%), and caustic soda (0.25%); The main commodities falling are baking soda (-0.84%). The average increase and decrease this week is 0.37%.

Business Society analysts believe that in recent times, caustic soda prices have been consolidating and operating. Low concentration alkali is constrained by downstream demand and its rise is relatively weak. Downstream demand is mainly cautious, with a wait-and-see attitude, and transactions are lukewarm and not hot. It is expected that the later stage or consolidation operation will be the main focus, depending on downstream market demand.