In the first half of 2023, the overall price of Caustic Soda was weak. At the beginning of the year, the average market price was around 1128 yuan/ton. On June 30th, the price of caustic soda was around 792 yuan/ton, and the price fell by nearly 30% in half a year. Looking ahead to the future, domestic caustic soda prices are mainly stagnant, and the overall market situation is weak. Although several companies underwent maintenance in July, the early maintenance companies have gradually resumed production, and the supply of caustic soda is still relatively sufficient. Moreover, downstream alumina enterprises are operating relatively steadily, with fewer spot transactions and average purchase orders. Therefore, the price of caustic soda in the later stage is not optimistic, or it is mainly focused on maintaining a weak market, and specific attention should be paid to downstream market demand.
From the price fluctuation chart of caustic soda, it can be seen that in the first half of the year, the overall price of caustic soda showed four trends:
Stage 1: Weak decline. At the beginning of the year, the average market price was around 1128 yuan/ton. On March 18th, the average market price was 804 yuan/ton, with a price drop of 28.72%. Mainly because the prices of caustic soda purchased by the main alumina manufacturers in Shandong region continue to decline. Downstream market sentiment is mainly wait-and-see, with more on-demand procurement. Downstream alumina prices are low, and on-site caustic soda prices are weak.
Phase 2: Price increase. On March 18th, the average market price of caustic soda was 804 yuan/ton, and on April 15th, the average market price was 910 yuan/ton, with a price increase of 13.18%. Although downstream demand is still mainly based on on-demand procurement, the atmosphere of on-site trading is average, and market transactions are relatively flat. However, in some regions, there has been a decrease in caustic soda equipment, and the inventory of caustic soda has decreased. The overall supply is lower than in the early stage, and caustic soda has positive support.
The third stage: consolidation operation. The price has stabilized at around 880 yuan/ton from mid April to the end of May. There is no positive support in terms of supply. The performance of downstream alumina is relatively light, 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 has stabilized and operated.
Stage 4: Market downturn. At the end of May, the average market price of caustic soda was 904 yuan/ton. On June 30th, the average market price of caustic soda was 792 yuan/ton, a decrease of 12.39%. The overall supply is sufficient, and there is no favorable support for the supply side. Although there are a few caustic soda enterprises undergoing maintenance in the later stage, downstream alumina is operating weakly and steadily, with average enthusiasm for picking up goods and average caustic soda shipments. Enterprises still maintain high inventory as the main focus. Insufficient demand support, and the overall wait-and-see sentiment in the market is lingering.
On the supply side: From the chart of caustic soda operating rate and maintenance situation, it can be seen that in the first half of 2023, the operating rate of caustic soda enterprises was mostly maintained between 80% -85%, and there were caustic soda enterprises undergoing maintenance. However, due to the lack of favorable support from downstream, prices remained weak. In addition, there is data monitoring and statistics on the national caustic soda production from January to May 2023, which shows that in May 2023, the national caustic soda production (converted to 100%) was 3.4128 million tons, a year-on-year decrease of 0.3%. From January to May 2023, the national caustic soda production was 16.9337 million tons, a cumulative increase of 4.2%.
On the demand side: The downstream of caustic soda mainly includes alumina, textile and papermaking, followed by chemical, Water Treatment, pharmaceuticals, printing and dyeing, light industry, etc. The alumina industry accounts for 31% of the demand for caustic soda. Recently, the price of alumina has been relatively stable, and spot transactions have been average. Some alumina enterprises have limited production capacity, and the newly added production capacity has been delayed, resulting in alumina enterprises mainly purchasing caustic soda on demand.
We supply caustic soda flakes , caustic soda pearls , sodium hydroxide flakes , sodium hydroxide pearls 99% ,caustic soda beads 98% , caustic soda lye , sodium hydoxide beads , solid caustic soda , caustic soda for soaps , caustic sodium ,naoh flakes , caustic soda in water treatment .
