Caustic Soda prices going steady with sufficient availability of material
- 26-Apr-2022 8:39 AM
- Journalist: Peter Schmidt
Caustic Soda prices showed a stabilizing trend in the Asian market due to stagnant demand from the downstream industries such as soaps and detergents and the alumina industry. The improvement in supplies has been witnessed in China. US market showcased similar sentiments with stable demand from the downstream industries and ample availability of raw materials to conquer demand in the domestic market.
Stable demand from the domestic market and sufficient availability of raw materials narrowed the demand-supply gap for Caustic soda across the globe since early April. Caustic soda prices in the APAC region stabilized because of the sufficient availability of raw material to maintain stable offtakes in the international and domestic markets. Traders and buyers were cautious of the disruption in global supply chains brought about by the new wave of pandemics currently pervading China and the Northeast Asian region and indulged in procuring quantities required amidst mulling uncertainty in the market of APAC region. Supplies extended amid limited enquires from the downstream segment of Caustic Soda in India. The Chinese government’s zero covid policy led to lockdowns in major industrial cities leading to a stagnancy in demand and offsetting the cost pressure from high energy costs and tight supply fundamentals.
European market of Caustic soda had seen a downward trend with a significant drop of 2.5% week on week in the last week of April owing to sufficient availability to conquer existing demand from the domestic market. Besides, several traders were also heard, allowing constant negotiations to idle their inventories.
The prices of caustic soda are expected to stabilize in the global market. As per ChemAnalyst, “the prices of Caustic soda are likely to ease in the European market as material availability is expected to be persistent as market sentiments are likely to witness slow offtakes in the international market post Russia-Ukraine conflict.