Group 1: Report Industry Investment Rating - The trend strength of caustic soda is -1, indicating a relatively bearish view [4] Group 2: Core View of the Report - The valuation of caustic soda is always suppressed by the expected alumina production cut, and future market trends depend on whether this expectation is confirmed or refuted. In the long - term, alumina production cuts will lead to negative feedback in the industrial chain [2] Group 3: Summary by Relevant Catalogs Fundamental Tracking - On October 20, 2025, the 01 - contract futures price of caustic soda was 2344, the price of the cheapest deliverable 32% caustic soda in Shandong was 800, the Shandong spot 32% caustic soda converted to the futures price was 2500, and the basis was 156 [1] Spot News - On October 17, the caustic soda market in Shandong showed mixed trends. In the eastern part, inventory declined and some prices rose slightly; in the western part, high - price sales were poor and prices continued to fall [1] Market Condition Analysis - In October, there were new maintenance plans in Shandong, Hebei and other regions, so the supply pressure of caustic soda was not large. On the demand side, alumina plants in Hebei made concentrated purchases. With the subsequent shipment of orders from other provinces, Shandong was expected to continue destocking, and a sharp decline in the short - term Shandong market was unlikely. The high - output and high - inventory pattern of the alumina industry compressed profits, and marginal production capacity supply might be affected in the future. Although there was a demand for 5.6 million tons of new production capacity in Guangxi from the end of this year to early next year, the low - profit situation would also lead to a decline in the inventory levels of other alumina plants. The expected impact of alumina production start - up and production cuts on caustic soda could basically offset each other. In winter, it was the off - season for chlor - alkali enterprise maintenance, and the supply - demand gap caused by inventory accumulation might be limited [2]

Report Industry Investment Rating - The report does not mention the industry investment rating. Core Viewpoints - In June, the maintenance of caustic soda and alumina restocking can still support the market, but after restocking, the market may tend to short the chlor-alkali profit under the negative demand feedback [2]. - There are still many new maintenance plans for caustic soda in June, especially in Shandong. Although the profit is not in the red, the manufacturers' load is generally at a high level. The impact of chlorine-consuming downstream on caustic soda supply needs attention [2]. - Considering the overall decline in coal and electricity prices this year, self - supplied power plant enterprises have no motivation to cut production, and grid - connected power enterprises still have a large profit margin, which will open up the downward space for caustic soda valuation. The change in liquid chlorine price also needs attention [2]. Summary by Relevant Catalogs Fundamental Tracking - The 09 - contract futures price of caustic soda is 2308, the price of the cheapest deliverable 32% caustic soda spot in Shandong is 850, the spot 32% caustic soda in Shandong is equivalent to 2656 on the futures market, and the basis is 348 [1]. - After the price of liquid caustic soda of major enterprises in Shandong was lowered over the weekend, the prices of other enterprises remained unchanged, but the delivery volume to major downstream enterprises was large. The focus today is still on the change in delivery volume [1]. Market Condition Analysis - Alumina restocking and caustic soda maintenance in June can support the market. If an alumina enterprise in Shandong restocks, the next price cut may occur after late June. After restocking, the market may short the chlor - alkali profit under negative demand feedback [2]. - There are many new maintenance plans for caustic soda in June, especially in Shandong. Manufacturers' load is generally high due to non - loss profits. The impact of chlorine - consuming downstream on caustic soda supply needs attention, though it was limited in Q1 due to high caustic soda profits [2]. - Considering the decline in coal and electricity prices this year, self - supplied power plant enterprises have no motivation to cut production, and grid - connected power enterprises still have profit margins, which will open up the downward space for caustic soda valuation. The change in liquid chlorine price also needs attention [2]. Trend Intensity - The trend intensity of caustic soda is - 1, indicating a bearish trend. The trend intensity ranges from - 2 to 2, with - 2 being the most bearish and 2 being the most bullish [4].