Since September, the domestic caustic soda market has been rising one after another, with transaction prices breaking new highs. In just over a month, the increase has reached 900 yuan / ton, far exceeding market expectations and there is still room for further growth in the industry People think that short-term caustic soda market in Northwest China is expected to exceed 5000 yuan / ton mark.
The main reason is also due to environmental protection policies, the impact of alumina on the market and the pre-sale operation mode in Northwest China.
As a result of the intensified environmental protection policies, the commencement load of chlor-alkali enterprises decreased significantly. Xinjiang Zhongtai and Xinjiang Tianye were the major production areas. Due to the environmental supervision, the current operating load is still at a low level. The daily output of Xinjiang Tianye is about 1,800 tons , Xinjiang Zhongtai Nissan is about 1,200 tons, due to the local chlor-alkali enterprises pre-sale orders more difficult to meet the downstream supply of external sources of demand, it is learned that the company pre-sale orders have been routed to the end of November, in this case, the external delivery Source will be substantially reduced, which will have a huge impact on the entire caustic soda market, but also to the caustic soda market rose again provided a favorable support and an opportunity.
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