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

Since mid-March, the price of 32% ionic membrane liquid alkali has been rising

Production cuts and tight 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

Some enterprises began to overhaul in mid to late March

The reduction of negative production also has a positive effect on the rise of the liquid caustic soda market

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.

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

　　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

　　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

　　"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%)

　　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

　　"Compared with the demand side, the tight supply side has a greater impact on the market price increase

　　Ankang said that the current domestic caustic soda price has been at a relatively high level.