echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Chemicals Industry > China Chemical > Supply and demand mismatch, liquid caustic soda market continues to rise

    Supply and demand mismatch, liquid caustic soda market continues to rise

    • Last Update: 2022-05-08
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

      Since mid-March, the price of 32% ionic membrane liquid alkali has been rising
    .
    According to the monitoring data of Zhuochuang Information, as of April 15, the mainstream price of 32% ionic membrane liquid caustic soda (100%) in Shandong was 1200~1330 yuan (ton price, the same below), which was 300~350 yuan higher than that in mid-March.
    The increase was 33.
    3%~35.
    7%

    .
    Looking at the market outlook, under the influence of supply and demand mismatch factors such as enterprise maintenance, the new crown pneumonia epidemic and downstream shortages, the market price of the main production areas of liquid caustic soda in the short term may continue to rise

    .

      Production cuts and tight supply

     Production reduction, supply tightness, production reduction, tightness supply

      Since mid-to-late March, affected by the epidemic, some companies have begun to reduce production and overhaul to avoid risks in a planned way, resulting in a tight supply of liquid caustic soda market and driving up the price of liquid caustic soda
    .

      "Due to the spread of the domestic epidemic, logistics is limited
    .
    Especially in some places with stricter control, the delivery speed is slow, resulting in increased inventory pressure of enterprises, forcing chlor-alkali enterprises to reduce production load; at the same time, some chlor-alkali enterprises have routine maintenance This leads to a regional reduction in the supply side

    .
    The reduction in supply caused by the reduction in production and volume will form a positive support for the liquid caustic soda market

    .
    " Analysis by Zong Xueliang, a chlor-alkali analyst at Zhuo Chuang Information

    .

      Some enterprises began to overhaul in mid to late March
    .
    Up to now, the chlor-alkali plants that have not been restarted include Shenyang Chemical 200,000 tons/year, Dongying Jinmao 240,000 tons/year, Jiangsu Xinpu Chemical 220,000 tons/year, and Shandong Dongyue 280,000 tons/year

    .
    In addition, the 600,000-ton/year chlor-alkali plant in the Dawang plant in Jinling, Shandong was shut down for maintenance on April 17, and the two sets of chlor-alkali plants in Northwest China are scheduled to start maintenance in mid-to-late April

    .
    The overhaul led to tight supply in the liquid caustic market, and the company took the opportunity to adjust prices

    .
    It is expected that the market price of liquid caustic soda will continue to rise in the later period

    .

      The reduction of negative production also has a positive effect on the rise of the liquid caustic soda market
    .
    "In addition to the devices that have not been restarted, there are still some chlor-alkali plants in Shandong that are in a state of reduced

    load.
    For example, Shandong Huatai Group's 750,000 tons/year unit is running at 66.
    7% load, and Dadi Salt Chemical Group's effective production capacity is 450,000 tons/year.
    Solid The caustic soda plant runs at 70% load, and the 200,000-ton/year chlor-alkali plant in Shandong Jinling Dongying plant runs at 50% load, etc.

    " Zhang Jin, a chlor-alkali analyst at Zhongyu Information, said that this will lead to a reduction in the supply of liquid caustic soda and an increase in the price of liquid caustic soda
    .

      The main force downstream lifts powerfully

     The main force downstream lifts powerfully The main force downstream lifts powerfully

      "On the demand side, the main downstream alumina of liquid caustic soda is supported by the continuous rise in the price of raw materials of bauxite ore; the overseas price is significantly higher than the domestic price, which leads to the decrease of imported alumina and the support of the decrease in supply, and the downstream electrolysis of alumina.
    The high heat of the aluminum market has brought support from the increase in demand, which has jointly boosted the alumina price to maintain a relatively high level

    .
    " said Ankang, a chlor-alkali analyst at Longzhong Information

    .

      According to Mysteel alumina data, as of April 15, the average price of alumina in Henan was 3,020 yuan, up 20 yuan from the average price on the 6th, and 45 yuan higher than the average price in Shandong on the same day
    .
    The rise in alumina prices in Henan has boosted the surrounding markets

    .
    At the same time, the rise of the alumina market has brought a certain buffer space to the procurement cost of liquid caustic alumina enterprises, which has raised the bearing capacity of the enterprises, resulting in the continuous upward trend of the liquid caustic market

    .

      According to the monitoring of Longzhong Information, in the second quarter, there will be 2 million to 3 million tons/year of new alumina units put into operation in China, and recently, the demand for alumina in Henan and other regions is relatively high for liquid caustic soda in North China, Central China and Northwest China
    .
    The increase in demand will continue to form a good support for the liquid caustic soda market

    .

      Independently increase the purchase price

     Independently increase the purchase price Independently increase the purchase price

      On the cost side, on the one hand, the market price of raw salt, the main raw material of liquid caustic soda, has been affected by the significant reduction in the amount of imported raw salt and the reduction in domestic supply
    .
    On the other hand, the rise in electricity prices has formed a cost support for the rise in the price of liquid caustic soda

    .

      "In terms of price, in April, the alumina alkali used in Shandong has been raised for three consecutive times, with a cumulative increase of 250 yuan (100%), and the alumina alkali used in Shanxi and Henan has a monotonous increase of 300 yuan (100%)
    .
    Recently, the overall domestic liquid alkali market.
    The trading atmosphere is relatively active, and downstream enterprises in Shandong are buying liquid caustic soda at high prices, which drives the local liquid caustic market to continue to rise, and also plays a good role in driving the surrounding liquid caustic market

    .
    " Zhang Jin said

    .

      Ankang said that in the short term, under the influence of factors such as the epidemic and downstream shortages, the price of liquid caustic soda market will continue to rise
    .
    At the same time, the epidemic has eased, and transportation has gradually become smoother, which will help the main production areas to transport a large amount of goods to the main sales areas.
    Under the circumstance that the inventory pressure is effectively alleviated, the initiative of manufacturers to adjust market prices independently will also help the short-term market price rise

    .

      "Compared with the demand side, the tight supply side has a greater impact on the market price increase
    .
    Under the imbalance of supply and demand, the liquid caustic soda has a large continuous increase process

    .
    However, considering the bearing capacity of the downstream market, the market cannot unilaterally pull infinitely.
    Up

    .
    From the analysis of the price attributes and characteristics of the product, the benefits in the early stage have been basically digested, and it is expected that the short-term liquid caustic rise in the market will be limited

    .
    " Zong Xueliang said

    .

      Ankang said that the current domestic caustic soda price has been at a relatively high level.
    In the medium and long term, as the maintenance equipment resumes production and the purchase of main downstream raw materials tends to be stable and saturated, if there are no other influencing factors, the market price may decline.
    trend

    .

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.