Caustic Soda Market Report

What is going on in the Eastern Caustic Soda markets?

China’s electricity rationing problem persists, and over the last week, the price of Caustic Soda has increased by between $ 7 and $ 15 per day in China (most notably in North and East China). There is little indication that this trend will reverse in the coming week, and given the substantial declines in both Caustic Soda production rates and factory inventories, it is projected to persist in the coming weeks.

Although global demand for Caustic Soda is increasing slightly as a result of cooler weather, the agricultural harvest season, and increased production of related items, it is not evenly distributed. Much of the demand for Chinese Caustic Soda in East Asian and East African markets has moved to West Asia suppliers, posing challenges for supply capacity and DG cargo transportation services in West Asian ports, particularly Dubai’s Jebel Ali port. Actually, the workload for Caustic Soda shipment has been shifted from Chinese ports toward Middle Eastern ports. Additionally, the approach of Shaheen Storm to the areas of Fujairah and Jebel Ali is predicted to hamper cross-staffing operations in Dubai in the coming days.

In Iran, the price of Caustic Soda Liquid jumped by 17% over the previous week, while the price of Caustic Soda Flakes increased by nearly 23%. However, supply is difficult due to demand shifts and transportation issues. India’s prices increased in perfect sync with other Eastern markets, but at a faster pace than in the Middle East, pushing India’s caustic soda prices up by around 32% in the previous week.

As a result of rising demand and supply-side constraints, the same trend is anticipated to remain next week.

This article was prepared by Hossein Khabiri, the account manager of Infinity Galaxy (www.infinitygalaxy.org).