Chinese Caustic Soda price rises due to the stimulation of centralized maintenance

The price of caustic soda rose slightly. On March 1, the average price of Shandong market was about 457.5 CNY / ton, and on March 15, the average price of Shandong market was 482.5 CNY / ton, up 5.46%. On March 14, the commodity index of caustic soda was 67.99, which was the same as yesterday, decreased by 67.13% compared with 206.87 (2017-11-14), the highest point in the cycle, and increased by 4.42% compared with 65.11, the lowest point on October 9, 2020. (Note: period refers to the period from September 1, 2011 to now).

The reason for the rise of sodium hydroxide price in this round is that the factories have concentrated maintenance and the supply side is slightly tight. At present, the price of sodium hydroxide in Shandong Province is rising slightly, and the mainstream ex factory price of 32% sodium hydrate is 390-480 CNY / ton. Recently, the number of maintenance devices have increased, and the downstream purchase volume is large. It is expected that there may be a small increase in the future. At present, 32% ion-exchange membrane sodium hydrate is the mainstream market. The price is about 460-600 CNY / ton, and the downstream is mainly purchased on demand. Jiangsu market is 550-650 CNY / ton, and transactions are mostly stable.

From the downstream of sodium hydrate, after the Chinese New Year holiday, the terminal demand of alumina, paper making and other industries improved slightly, and the demand for caustic soda increased, which boosted the low rebound of sodium hydroxide price. However, the price of caustic soda is mainly a wait-and-see attitude, and both sides enter the game.

At present, the supply of caustic soda is slightly tight, leading to a slight increase in the manufacturer's quotation. But on the whole, the demand of downstream industries such as alumina, paper making, viscose staple fiber and so on is general, and the support for caustic soda is relatively limited. On the whole, it is expected that the operation of caustic soda will be dominated by narrow fluctuation, and the specific situation depends on the downstream market demand.