Caustic soda prices have been witnessing a stable trend recently; prices decline Y-O-Y, though

Caustic soda prices held steady over the recent period, with the average market price remaining stable. On a year-on-year basis, however, the price has decreased significantly. The market appears to be in a period of consolidation after experiencing substantial volatility in previous years, with current price levels well below the cyclical highs recorded in late 2021.

Across major production hubs, caustic soda prices demonstrated a general pattern of stability and consolidation. The mainstream price for 32% ion-exchange membrane caustic soda held within a steady and consistent band in key regional markets. This trend was also reflected in pricing for the concentrated product, which was quoted within a specific, consolidating range.

This price stability is supported by a balanced supply and demand dynamic. In key production regions like Shandong, inventory pressure on manufacturers is reported to be minimal. While there has been some supply reduction due to plant maintenance, overall fluctuations have been limited. On the demand side, purchasing interest from major downstream users, such as alumina producers, has been present but cautious, with buying primarily based on immediate needs. This has contributed to a generally pessimistic sentiment among dealers and distributors.

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Looking ahead, the market outlook suggests a continuation of this trend. With domestic downstream companies continuing to purchase on a need-based basis and caustic soda producers not facing major inventory or supply pressures, the market is expected to maintain its consolidation. The future price direction will largely depend on the strength of downstream market demand, with the current supply-demand balance likely leading to stable prices in the near term.