Analysis of Domestic Caustic Soda Market in China
2024-1-26
Liquid Alkali:
This week, the domestic liquid alkali market has seen regional price increases. Following are the driven factors:
1- Reginal supply decreased: some of the domestic liquid alkali facilities were under maintenance and shutdown, leading to a regional decrease in the production and market supply of liquid alkali, a continuous decline in enterprise inventories, and a corresponding increase in the ex-factory price.
2- Stockpiling increased: as the Spring Festival approaches, some downstream enterprises that consume large amounts of alkali have begun to stock up in advance, boosting their enthusiasm for purchasing liquid alkali.
However, there are still some factors influencing the recent liquid alkali market. The high production costs of domestic liquid alkali, and the continuous mild liquid chlorine market lead to the big pressure on production and operation of caustic soda enterprises. Some liquid alkali enterprises have begun to negotiate export orders for March, which may ease the pressure on the domestic trade market. Additionally, the caustic soda futures market fluctuates frequently, leading to the wait-and-see atmosphere in the spot market.
Flake Alkali:
This week, the domestic flake alkali market has seen slightly faster transactions and higher prices in some regions. The domestic flake alkali facilities have been mostly stable in operation, with stable production and sufficient market supply. The main downstream alumina market has stabilized and partially increased, with some enterprises increasing their stockpiling before the holiday. The textile and dyeing markets have operated normally, and enterprises have purchased flake alkali as needed.
Due to different regional demands for flake alkali, there have been some differences in market operating prices. With increased pre-holiday stockpiling demands in Southwest, South China, and East China, local flake alkali market transaction prices have continued to rise. By the end of the month, due to partial downstream production restrictions, some enterprises in North China will still experience moderate procurement. Overall, the factory prices of flake alkali are at previous levels.
This week, the domestic liquid alkali market has seen regional price increases. Following are the driven factors:
1- Reginal supply decreased: some of the domestic liquid alkali facilities were under maintenance and shutdown, leading to a regional decrease in the production and market supply of liquid alkali, a continuous decline in enterprise inventories, and a corresponding increase in the ex-factory price.
2- Stockpiling increased: as the Spring Festival approaches, some downstream enterprises that consume large amounts of alkali have begun to stock up in advance, boosting their enthusiasm for purchasing liquid alkali.
However, there are still some factors influencing the recent liquid alkali market. The high production costs of domestic liquid alkali, and the continuous mild liquid chlorine market lead to the big pressure on production and operation of caustic soda enterprises. Some liquid alkali enterprises have begun to negotiate export orders for March, which may ease the pressure on the domestic trade market. Additionally, the caustic soda futures market fluctuates frequently, leading to the wait-and-see atmosphere in the spot market.
Flake Alkali:
This week, the domestic flake alkali market has seen slightly faster transactions and higher prices in some regions. The domestic flake alkali facilities have been mostly stable in operation, with stable production and sufficient market supply. The main downstream alumina market has stabilized and partially increased, with some enterprises increasing their stockpiling before the holiday. The textile and dyeing markets have operated normally, and enterprises have purchased flake alkali as needed.
Due to different regional demands for flake alkali, there have been some differences in market operating prices. With increased pre-holiday stockpiling demands in Southwest, South China, and East China, local flake alkali market transaction prices have continued to rise. By the end of the month, due to partial downstream production restrictions, some enterprises in North China will still experience moderate procurement. Overall, the factory prices of flake alkali are at previous levels.