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Zhuchuang Information: In caustic soda regional supply-demand imbalances, prices rise and fall differently across regions

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In recent days, the prices of 32% liquid caustic soda have been fluctuating inconsistently across multiple regions in China. In some areas, market demand has been weak, but some chlor-alkali companies have reduced operating loads due to losses, making their price-support sentiment evident, which has pushed prices up; in other areas, plentiful supply has increased companies’ shipping pressure, market demand has remained subdued, and with the impact of price cuts in solid caustic soda and related markets, prices have been lowered; in some other areas, supply and demand changes have been limited, and prices have been temporarily stable. As of July 20, in Shandong, the mainstream spot cash ex-works price of 32% ion-exchange membrane caustic soda is 625–730 yuan/ton, with a closing average of 677.5 yuan/ton, up 1.12% from the early-July closing average of 670 yuan/ton. Looking at this week, there is little expectation of improvement on the demand side. On the supply side, performance varies: in some regions, chlor-alkali companies are undergoing maintenance or have reduced loads due to losses, while in other regions maintenance has ended and production has resumed. Because chlor-alkali companies are currently operating at a loss, companies’ price-support sentiment remains. It is expected that this week, in many regions, 32% liquid caustic soda will mainly remain stable, with local adjustments up or down within a narrow range depending on supply and demand in each area. (Zhuochuang Information)
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