1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - **Macro Environment**: Domestic policy signals are released, leading to a positive sentiment. The US has reached trade agreements with Japan and the EU, improving market sentiment [4]. - **Supply - Demand Situation**: In the East China region, supply - demand fluctuations are relatively limited this week, with no planned device maintenance and sufficient supply. The off - season continues as non - aluminum demand shows no significant improvement. The inventory of liquid caustic soda in the main production areas of Shandong Province remains at a low level [4]. - **Overall Logic**: Caustic soda has strong cost support at the bottom. The domestic "anti - involution" drives the market sentiment to strengthen. However, if the futures price has a high premium over the spot price, beware of the risk of a decline [4]. - **Strategy Suggestion**: For the caustic soda 2509 contract, the upper reference pressure level is 2750 yuan/ton, and the lower support level is 2350 yuan/ton [4]. 3. Summary According to the Table of Contents 3.1 Market Review - **Spot Market**: The price of Shandong liquid caustic soda remained stable. The basis of Shandong 32% liquid caustic soda widened. From July 2024 to July 2025, data on the prices of 32% and 50% ion - membrane caustic soda in Shandong, as well as the prices of 99% flake caustic soda in Shandong and the northwest, were presented. The price of 32% ion - membrane caustic soda in Shandong decreased by 1.19% to 830 yuan/ton, the price of 50% ion - membrane caustic soda decreased by 2.19% to 1340 yuan/ton, and the price of 98% flake caustic soda in the northwest increased by 7.26% to 3250 yuan/ton. The price of liquid chlorine in Shandong decreased by 33.33% to - 400 yuan/ton, and the price of alumina increased by 1.75% to 3195 yuan/ton [9][12][18]. - **Futures Market**: Data on the futures closing prices of caustic soda, soda ash, alumina, and PVC from July 2024 to July 2025 were presented, along with the caustic soda futures closing price and the number of warehouse receipts [15][16]. 3.2 Market Analysis 3.2.1 Supply Side: Production and Operating Rate - **Current Situation**: From January to July 2025, data on the weekly production, operating rate, and device loss of caustic soda were presented. In the week of July 18 - 24, 2025, the average operating rate of 200,000 - ton and above caustic soda sample enterprises in China was 84.0%, a month - on - month increase of 1.4%. The operating rates in North China, East China, Northeast China, and South China increased, while that in Central China decreased. Shandong's operating rate increased to 87.6%. It is estimated that the operating rate this week will be around 84%, with a weekly output of about 822,900 tons [20][22]. - **Maintenance Plan**: There are planned device maintenance in the Northwest this week. Some enterprises in East China, North China, Northeast China, and Southwest China have maintenance plans in August [22][23]. 3.2.2 Downstream: Alumina - **Supply Situation**: In the current week, the supply of the alumina market decreased slightly. Due to the short - term maintenance of two roasting furnaces in an alumina plant in the Southwest, the supply shortage in the South intensified, while the supply in the North was relatively loose. As of July 24, the built - in capacity of alumina in China was 114.8 million tons, and the operating capacity was 93.2 million tons [25]. - **Operating Rate and Profit**: Data on the weekly operating rate and industry cost - profit of alumina from January to December 2018 - 2025 were presented [26]. 3.2.3 Inventory - **Overall Inventory**: As of July 24, 2025, the factory inventory of 200,000 - ton and above fixed liquid caustic soda sample enterprises in the country was 408,400 wet tons, a month - on - month increase of 6.38% and a year - on - year increase of 4.29%. The storage capacity ratio was 24.06%, a month - on - month increase of 1.82%. Except for the Northwest and Central China, the storage capacity ratios in other regions increased [30]. - **Regional Inventory**: In North China, inventory increased due to high - price downstream resistance and increased supply. In South China, inventory rebounded as the main factory resumed full - load operation. In Central China, inventory decreased as some enterprises' sales improved. In East China, inventory increased due to the off - season of non - aluminum demand and general export orders. In the Northwest, inventory decreased as downstream procurement enthusiasm increased. In Southwest China, inventory increased slightly as enterprises maintained production and downstream demand was mainly for rigid needs [30]. 3.2.4 Liquid Chlorine - **Price**: As of July 24, 2025, the price of liquid chlorine in Shandong decreased, with a weekly average price of - 400 yuan/ton, a month - on - month decrease of 1.75%. The demand for liquid chlorine decreased due to the non - recovery of downstream methane devices in Liaocheng and the shutdown of chlorine - consuming downstream devices in Zibo [33]. - **PVC Operating Rate**: As of July 25, 2025, the operating rate of PVC in China was 76.79%, a month - on - month decrease of 0.80%. It is estimated that the operating rate this week will be 76.86%, and the overall supply is expected to increase [33]. - **Profit**: In the week of July 18 - 24, 2025, the average weekly profit of Shandong chlor - alkali enterprises was 136 yuan/ton, a month - on - month increase of 4.62%. Although the price of liquid caustic soda in Shandong decreased and the liquid chlorine subsidy decreased, the overall chlor - alkali profit showed an upward trend [34].

Price Index Summary - In May 2025, the Xinhua Zhongyan industrial salt price index reported 947.78 points, a decrease of 15.96 points (1.66%) from April 2025, and a decline of 52.22 points (5.22%) from the base period of January 2018 [1] - The index is down 788.88 points (4.43%) from the highest point of 1736.66 points in April 2022, but up 131.58 points (16.12%) from the lowest point of 816.2 points in August 2020 [1] Regional Price Trends - In May 2025, industrial salt prices increased in Anhui, Jiangsu, Chongqing, and Yunnan compared to April 2025, while prices remained stable in Hubei, Hunan, Sichuan, and Liaoning [1] - Prices decreased in Shaanxi, Jiangxi, Henan, Xinjiang, Hebei, Shandong, Tianjin compared to April 2025 [1] - Three regions reported industrial salt prices above 300 RMB/ton: Henan, Yunnan, and Liaoning, while 14 regions reported prices below 300 RMB/ton [1] Supply and Demand Dynamics - In May, the raw salt market in China experienced increased supply with stable demand, particularly due to intensified salt production efforts post-May Day holiday [2] - The sea salt market saw a significant rise in supply, especially in Hebei, Shandong, and Jiangsu, but downstream demand from alkali enterprises remained limited, leading to increased inventory pressure [2] - Some salt companies began to implement slight price reductions to alleviate inventory pressure and promote sales [2] Market Segmentation - The mineral salt market showed significant regional price differentiation, with supply tightening in North and Central China due to maintenance shutdowns, leading to price increases [3] - In contrast, the Southwest region saw stable supply due to increased production capacity, while the Northwest maintained high production levels, resulting in stable pricing [3] - The lake salt market remained balanced with stable supply and demand, although increased temperatures in the Northwest led to higher lake salt production [3] Soda Ash Market Conditions - As of the end of May, the soda ash market continued to face pressure due to overcapacity, with weak demand from the real estate and photovoltaic industries [4] - The overall effective production capacity in the soda ash industry remained stable, with limited major maintenance affecting supply [4] - Inventory levels for soda ash producers increased, while social inventory slightly decreased, indicating ongoing overcapacity in the market [4] Liquid Alkali Market Overview - The liquid alkali market in May exhibited a relatively loose supply-demand balance, with local adjustments in supply and demand [5][6] - Supply remained sufficient due to the recovery of previously shut down production facilities, although regional demand showed variability [6] - The textile and dyeing industries provided some demand support, while the aluminum oxide sector's demand fluctuated due to maintenance and production adjustments [6]

Core Viewpoint - The news highlights the advancements and innovations in the salt industry, particularly focusing on the operations of the Luyin Investment's salt segment, the Shouguang City salt field, and the production of high-value salt products like "salt flower" [2][3][4]. Group 1: Industry Overview - Shandong Province is a major sea salt producer in China, with Shouguang City having a rich history in salt production and abundant underground brine resources, estimated at 2.6 billion cubic meters [3]. - The salt field has an area of approximately 130 square kilometers and an original salt production capacity of around 3 million tons, accounting for 12.5% of the national sea salt capacity [3]. - The salt industry is evolving towards healthier, functional, and high-end salt products, driven by rising consumer health awareness and living standards [4][6]. Group 2: Product Innovations - The "salt flower," a high-end salt product, is produced in limited quantities, with less than 500 grams obtainable from every 50 square meters of salt field annually [4]. - The demand for mid-to-high-end salt products is increasing globally, with a stable apparent demand for table salt in China at around 11.5 million tons [4]. Group 3: Technological Advancements - The salt field is implementing smart technologies to innovate production methods, including remote monitoring, automated operations, and intelligent weather forecasting [6]. - The Shandong provincial government is promoting digital, networked, and intelligent production methods to enhance the salt industry [6][7]. Group 4: Market Position and Future Prospects - In 2024, Shandong is expected to maintain its leading position in salt production, with original salt and sea salt production both ranking first nationally [7]. - Luyin Investment's salt segment is projected to produce 1.35 million tons of salt, accounting for about 80% of the province's total production [6][7]. - The integration of renewable energy sources, such as solar power, into salt production is being explored to enhance economic growth and land utilization [7].