A Brief Analysis of the Recent Trends in the Domestic Soda Market
March 01, 2024
Liquid alkali: Recently, the domestic liquid alkali market has been mainly stable, and some enterprises have flexibly adjusted their factory quotations based on inventory conditions. In terms of supply, during the Spring Festival, some Caustic Soda enterprises were affected by poor shipments of liquid chlorine, resulting in a decrease in the operating load of the equipment, a decrease in liquid alkali production, and low inventory, which led to a slight increase in their factory quotations. After the holiday, as the production load of the equipment gradually increased, the production of liquid alkali continued to recover, and the market wait-and-see atmosphere intensified, resulting in relatively flexible transactions. In terms of demand, the production of aluminum oxide enterprises is basically normal, and the operating load remains at the previous level. There has been no significant change in the purchase price of liquid alkali for aluminum oxide in the northern region this month, while the purchase price of liquid alkali for aluminum oxide enterprises in the southern Guangxi region has increased by 100 yuan/ton (100% off), providing certain favorable support for the local and surrounding liquid alkali market. The starting load of printing, dyeing, paper making and other industries is still not high. During the Spring Festival, some enterprises reduced the starting load or closed for holidays, and the demand for liquid caustic soda decreased slightly. The alkali consuming enterprises that stopped after the Yuanxiao (Filled round balls made of glutinous rice-flour for Lantern Festival) gradually resumed the market, and the demand for liquid caustic soda increased. In other aspects, domestic liquid alkali export enterprises have reported an increase in prices after the holiday, but foreign demand is relatively mild, and counteroffer prices are still at pre holiday levels. Most export enterprises execute long orders, and spot trading volume is relatively limited. In addition, the domestic liquid chlorine market continues to operate at a low level, with some areas experiencing temporary reverse freight charges. The operational pressure on caustic soda enterprises has increased, which is also one of the factors affecting the liquid alkali market.
Tablet alkali: Recently, the overall domestic tablet alkali market has remained stable, and towards the end of February, there has been an increase in market transaction prices. The production of domestic caustic soda plants is normal, and there is no significant adjustment in the output of the main production areas. The market supply of goods is stable, and the inventory of enterprises is at a reasonable level. After the Yuanxiao (Filled round balls made of glutinous rice-flour for Lantern Festival) Festival, the impact of the Spring Festival holiday gradually weakened, and some alkali consuming enterprises resumed marketing in succession. The demand for flake caustic soda increased, and the pace of shipment of flake caustic soda accelerated. Moreover, the increase in high concentration alkali prices in North China and the increase in local production costs of caustic soda are also the main factors that benefit the caustic soda market.
The main influencing factors of domestic caustic soda aftermarket:
1. As the weather warms up, some companies plan to arrange spring parking for maintenance, resulting in a decrease in supply in the local caustic soda market.
2. Entering March, some downstream alkali consuming industries in China have entered the traditional peak season of demand, which will lead to an increase in demand for caustic soda.
3. The raw material prices are at a high level, and the production cost pressure for caustic soda enterprises is significant.
