China's flake caustic soda prices drop as supply exceeds demand

China's flake caustic soda prices drop as supply exceeds demand

Date 15-05-2025 Views 214

China's flake caustic soda prices drop as supply exceeds demand

Supply: Operating capacity fluctuated around 85%–89% from January to March annually, then dropped to its lowest point around August (~81%) before recovering by year-end. Capacity from January to March 2025 was higher than in 2024, as China ramped up aluminum production for export to Canada, Russia, and Mexico. However, April 2025 capacity was lower than the same period last year, partly due to trade wars and declining demand in the aluminum industry.

Demand: China's caustic soda consumption in April 2025 reached 3.2037 million tons, down 5.06% from the previous month's 3.3746 million tons but still higher than the same period in 2024.

Cargo shipment: No unusual signs observed.

Market sentiment: Southeast Asian countries are adopting a wait-and-see approach, hesitating to purchase due to unpredictable fluctuations in U.S. trade policies.

Overall: During this period, purchasing demand remained subdued, while caustic soda output and inventory levels continued to rise.

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