Caustic soda prices were steady in major Asian markets during the first week of June 2025, with even supply and measured demand holding the volatility in check. Notwithstanding regional economic uncertainties, energy price fluctuations, and logistical conditions, the caustic soda market proved resilient with no significant price oscillations.

In China, Caustic Soda prices held firm through a combination of continued maintenance at major plants and high overall production rates. Decreases in coal and electricity prices eased pressure on production, enabling producers to maintain output without driving prices upward. Purchasing alumina was kept moderate by producers, but restocking was delayed as the previous buying met short-term requirements. Limited interest from non-aluminum sectors and a slight drop in export demand prevented any upward movement in the Caustic Soda prices, keeping the Chinese market stable and cautious.

Indian Caustic Soda market also experienced price stability underpinned by stable supply and persistent demand. Local manufacturers operated units at optimal capacity and kept costs in check notwithstanding external pressures such as increases in freight rates and Chinese refinery shutdowns. On the demand front, a slight pick-up in the aluminum sector and robust export orders sustained good offtake. While agrochemical demand was weak, robust manufacturing activity and well-managed restocking prevented Caustic Soda prices from declining.

At the same time, the Indonesian Caustic Soda market experienced a marginal 0.6% price hike in caustic soda, primarily because of tightening supply by key producers such as China and India. Maintenance outages and India's supply prioritization for domestic needs capped availability for Indonesian customers. Coupled with consistent demand from the aluminum and textiles industries, prudent forward purchasing added up to a small price increase. Importers paid more due to regional transportation bottlenecks, yet activity stayed firm.

The caustic soda price trend in Japan stayed unchanged, despite a short-lived reduction in domestic availability caused by maintenance shutdowns at prominent manufacturers like Asahi Glass and Tosoh.

Pre-maintenance stockpiling and muted local demand, though, put a cap on the effect. Although Japan's manufacturing industry was sluggish, stable export demand and uninterrupted logistics through regional gateways maintained stability in the Caustic Soda prices.

South Korean Caustic Soda price trend also exhibited the same pattern with FOB prices remaining consistent. In spite of increases in freight and a 0.2% decline in GDP, domestic production and inventory levels maintained stable supply. Demand remained weak because of declining chemical exports and weak industrial activity but maintaining a regional export stream helped avoid downward pressure on prices.

As per ChemAnalyst, the Asian caustic soda market is expected to follow stability in the week commencing June 2025. As market participants take a cautious, short-term approach amid weak sentiment in the chlor-alkali sector, the outlook for the coming weeks is expected to stay stable.