1、 Price trend:

According to the monitoring data of the business agency, the caustic soda is mainly in stable operation this week. The average market price in Shandong from the beginning of the week to the end of the week is 602.5 yuan / ton, with stable price. The caustic soda commodity index on February 27 was 86.69, unchanged from yesterday, down 58.09% from 206.87 (2017-11-14), the highest point in the cycle, and up 18.32% from 73.27, the lowest point on March 29, 2015. (Note: cycle refers to 2011-09-01 to now)

2、 Market analysis

Product: the price of caustic soda is stable this week. The price of 32% ion-exchange membrane caustic soda market in Shandong Province is stable, with a quotation of about 580-650 yuan / ton. The caustic soda enterprises have devices to stop, the market supply is reduced, and the trading atmosphere is flat. It is expected that the trend of narrow consolidation will run in the short term. The caustic soda market in Jiangsu Province is stable for the time being, with the main stream of 32% of the caustic soda market of 630-740 yuan / ton. The market is relatively stable with low load operation and weak trading. The price of caustic soda in Inner Mongolia is stable, the local mainstream price of 32% caustic soda is 1400-1500 yuan / ton (converted into 100 yuan), the downstream transaction is general, the market atmosphere is light, and the enterprise is mainly flexible in shipment.

Industrial chain: flake alkali market quotation: the price of caustic soda in Shandong Province is weak. 99% of flake alkali’s main factory price is about 2300-2600 yuan / ton. At present, the downstream demand is low, the market transaction is general, and it is expected that more weak operation will prevail in the later stage. In Tianjin area, flake caustic soda operates generally, with 99% of the main flake caustic soda ex factory price of about 2600-2900 yuan / ton. At present, the downstream demand is general, the market transaction is general, and it is expected that more weak flake caustic soda operations will prevail in the later stage.

Industry: according to the price monitoring of the business agency, in the 7th week of 2020 (2.17-2.21), there are 2 kinds of commodities rising and falling in the price list of chlor alkali industry, 2 kinds of commodities falling and 1 kind of commodities rising and falling to 0. The main commodities rising were calcium carbide (1.76%), caustic soda (0.42%); the main commodities falling were hydrochloric acid (- 1.39%), PVC (- 0.56%). This week’s average was 0.05%.

According to analysts of business cooperatives, the overall demand of domestic caustic soda market continues to be weak, chlor alkali enterprises’ shipments are flat, and the transportation is better than before, but at present, they are mostly in a wait-and-see attitude, while the downstream demand is average. Lack of demand support, domestic caustic soda market is expected to maintain consolidation market operation before the festival.