The raw materials for 2-Hydroxybenzoic acid are phenol, caustic soda, sulfuric acid, and carbon dioxide. 2-Hydroxybenzoic acid prices are largely determined by these raw material prices, which are in turn determined by feedstock costs for crude oil, natural gas, or coal. The price of caustic soda climbed in February, then decreased, and then surged again at the end of the month. The average price in Shandong at the start of the month was 917.5 RMB/MT, and at the conclusion of the month, it was about 1,087.5 RMB/MT, an increase of 18.53% and a 137.7% year-on-year rise.
The average price of 32% liquid caustic soda in Shandong's mainstream market was around 890-1,050 RMB/MT at the start of the first quarter of 2022. Downstream businesses were more eager to receive commodities, and some caustic soda businesses had less inventories. In the middle of the month, the price of caustic soda increased. On the 28th, Shandong's average market price was around 1,050-1,150 RMB/MT, while Hebei's mainstream ex-factory pricing for 32% liquid caustic soda was around 1,150-1,250 RMB/MT. The downstream demand was higher than previously, owing to the maintenance of the main caustic soda plant and the reduction in inventories.