Demand Dullness Plunges Global Caustic Soda prices in October 2022
- 28-Oct-2022 4:30 PM
- Journalist: Robert Hume
With a dip in the international offers of Caustic Soda amid the impending global recession, Caustic Soda prices showed a weekly fall in the week ending 28th October 2022 after witnessing consistent rise during previous weeks. Moreover, the rising energy values amid high electricity consumption due to the ongoing energy crisis also impacted the Caustic Soda market throughout August.
USA Caustic Soda witnessed a cost decline at the final week of October due to the squeezed trade activities for the international market, leading to stockpiling inventories in the country. Traders revealed that plants such as Olin Corporation struggled with lower buying confidence amongst the buyers in the local market for Caustic Soda and stockpiled inventories. As per the latest insights, enterprises negotiated prices for the commodity with a significant week-on-week decrease of 5% to maintain consistent offtakes across the regional market. Moreover, the demand fundamentals from the Alumina sector remained Silent, with curtailed production and contributed to the downward trajectory for Caustic Soda.
Meanwhile, European Caustic Soda prices experienced a dip in the last week of October owing to dull offtakes from the downstream industries and ample availability of stocks with the producers in the regional market. In addition, European trade activities were subdued due to persisting port strike at Liverpool amid escalation in the negotiations between employees and dockworkers of the region at the container terminal in the week ending 28th October 2022. The price of Caustic Soda for both the Lye and flakes grade dropped 3% this week.
According to ChemAnalyst analysis, "Prices of Caustic Soda are likely to stabilize globally due to stability in the domestic demand from the end-user detergent and Alumina industries. At the same time, Caustic Soda prices are likely to be influenced by the bullish market sentiments in the USA amid limited production activities. Moreover, supply constraints and muted demand from the Alumina sector amid the port congestion across the significant global economy will lead to a narrow trade for Caustic Soda globally in November. "