The off-season consumption has reached the momentum for expansion and the momentum for the domestic caustic soda market is gradually increasing.

Since August, the domestic caustic soda market has shown a trend of gradual decline, and it is expected that the market will continue to decline slightly in September.
According to the statistics of the National Bureau of Statistics, the domestic production of caustic soda in July 2005 was 1.0165 million tons, an increase of 23.7% from the same period of last year. July production continued to grow at a high rate, but the downstream situation was in a low season for consumption. Judging from the expansion of production, the domestic expansion of production in August will continue unabated. Newly built caustic soda plants from companies such as Zhejiang Juhua, Nanning Chemicals, and Weifang Yaxing have been driving one after another. The total new production capacity has exceeded 200,000 tons.
In August, the sales momentum of caustic soda was more obviously weakened. Judging from the market situation in August, there is still a situation in which supply exceeds demand, sales of enterprises have certain difficulties, and some regions are affected by power curtailment. In some areas, the operating rate cannot be reduced due to the inability of chlorine to balance. At the same time, the situation in the downstream is not optimistic. Due to the Sino-US textile trade disputes, the two governments are still in the process of negotiating. Although people in the industry are generally confident that the two sides will reach an agreement, the number of Chinese textiles will inevitably be affected by the number of exports. From the current situation, the operating rate of downstream textiles has been affected, and shipments of caustic soda have become more difficult in Jiangsu and Zhejiang.
In addition, in August, the eastern and southeastern coastal regions of China were attacked by Typhoon Matsa and corals, and some companies’ production was affected. At the same time, the typhoon attacks also had a certain impact on transportation. In addition, the arrival of typhoon has a certain impact on the production of crude salt in Shandong, Hebei, Liaoning, and other places, which further aggravated the autumn salt output that was not very optimistic.
At present, the domestic price of caustic soda, 30% of the mainstream price of diaphragm alkali in the 500 ~ 550 yuan / ton, slightly higher in Northeast China in East China, at 600 yuan / ton.
In September, due to the end of the summer, local electricity consumption peaks will end, the situation of power curtailment will be greatly relieved, and the production enterprises will gradually produce at full capacity. In addition, the expansion of production capacity expansion is still in full swing, and the output of caustic soda continues. Showing upward momentum. Since the downstream situation will not change significantly, the current production companies generally lack sufficient confidence in the domestic caustic soda market in September, and it is expected that the market will fall slightly in September.

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