Core Viewpoint - The domestic liquid caustic soda market shows stable prices in multiple regions, with a notable price increase for 50% liquid caustic soda in Shandong, despite limited profitability for chlor-alkali enterprises [1][2]. Group 1: Market Conditions - The transaction volume in the domestic liquid caustic soda market is acceptable today, with prices stable in many areas and an increase in the price of 50% liquid caustic soda in Shandong [1]. - In Shandong, the main transaction price for 32% liquid caustic soda is between 770-865 RMB/ton, while for 50% liquid caustic soda, it is between 1270-1290 RMB/ton [1]. - The overall supply and demand situation in other regions remains stable, although some markets see a decline in the willingness of downstream buyers to purchase at current high prices [1]. Group 2: Production and Inventory - As of this Thursday, the national average operating load of sample enterprises is 85.44%, down 1.29 percentage points from last week, due to increased maintenance and production cuts in chlor-alkali facilities [2]. - The inventory of 32% liquid caustic soda in East China increased to 173,300 tons, up 0.70% from September 10, driven by reduced production and active downstream procurement [2]. - In Shandong, the inventory of 32% liquid caustic soda rose to 36,600 tons, an increase of 8.28% from September 10, indicating a higher overall inventory level due to low downstream purchasing activity [2]. Group 3: Price Trends and Market Outlook - The market continues to trend weakly, with increased supply and higher operating rates among sample manufacturers [3]. - The recent decline in domestic alumina prices has narrowed profit margins for domestic alumina enterprises, leading to cautious purchasing behavior in the North China region [3]. - In Shandong, due to the upcoming National Day holiday, there may be a delay in releasing liquid caustic soda inventory, and with high supply levels, there is a possibility of further price reductions [3].

Group 1 - The domestic liquid caustic soda market is stable with acceptable transaction volumes, particularly in Shandong where demand remains decent and transportation in Tianjin has resumed, alleviating some shipping pressures for chlor-alkali enterprises [1] - The main prices for 32% liquid caustic soda in Shandong are between 850-915 RMB/ton, while the 50% liquid caustic soda prices range from 1340-1360 RMB/ton [1] Group 2 - As of Thursday, the national average operating rate for major sample enterprises is 86.09%, down 1.25 percentage points from last week due to increased maintenance of chlor-alkali facilities [2] - The inventory of 32% liquid caustic soda in East China decreased by 18.81% to 189,650 tons as of August 20, while Shandong's inventory fell by 19.31% to 67,700 tons, indicating improved purchasing activity from downstream sectors [2] Group 3 - Following the recent military parade, transportation disruptions are expected to ease, allowing liquid caustic soda companies to resume normal supply to downstream markets, with short-term market support from demand [3] - The current low inventory levels in Shandong and the recovery in non-aluminum downstream demand are likely to keep spot prices firm, with increased purchasing activity anticipated as traders prepare for upcoming demand [3]

Report Summary 1. Report Information - Research Variety: Caustic Soda [1] - Report Cycle: Daily [1] - Date: August 28, 2025 [1] 2. Market Conditions 2.1 Futures Market - **Contract Quotes**: The main caustic soda contract, Caustic Soda 2601, fluctuated on August 28, 2025, closing at 2,692 yuan/ton, down 10 yuan/ton or 0.37% from the previous settlement price. Trading volume decreased by 63,000 lots to 366,000 lots, and open interest decreased by 7,343 lots to 113,000 lots [2]. - **Variety Prices**: Among the 12 caustic soda futures contracts, only the Caustic Soda 2607 contract rose slightly by 0.18%, while the rest declined. The total open interest of the variety was 261,700 lots, a decrease of 12,871 lots from the previous trading day. The open interest of the active contract, Caustic Soda 2601, decreased by 7,343 lots, with 98.92 million yuan of funds flowing out [5]. - **Related Quotes**: The put options of the main caustic soda contract SH601 performed better than the call options today, with relatively low overall trading volume [7]. 2.2 Spot Market - In Shandong, the prices of 32% caustic soda remained mostly stable, with some companies with low inventories and good sales slightly increasing prices. The mainstream transaction prices of 32% ion - membrane caustic soda were 870 - 930 yuan/ton in southwestern Shandong, 840 - 890 yuan/ton in central and eastern Shandong, and 880 - 900 yuan/ton in northern Shandong. The mainstream transaction price of 50% ion - membrane caustic soda in central and eastern Shandong was 1,340 - 1,380 yuan/ton [8][9]. 3. Influencing Factors 3.1 Industry News - As of August 28, 2025, the factory inventory of fixed liquid caustic soda sample enterprises with a capacity of 200,000 tons and above was 379,600 wet tons, a 4.25% decrease from the previous period and a 28.84% increase year - on - year. The capacity utilization ratio of the national liquid caustic soda sample enterprises this week was 21.73%, a 0.65% decrease from the previous period. The capacity utilization ratios in the northwest, north, and southwest regions increased, while those in the central, eastern, southern, and northeastern regions decreased [10][11]. 3.2 Technical Analysis - The main caustic soda SH601 contract closed with a small negative line today, supported by the 10 - day moving average below [12]. 4. Market Outlook - Today, the main caustic soda futures contract, Caustic Soda 2601, continued to fluctuate weakly, while the spot price remained stable. This week, the inventory of sample enterprises continued to decline, with a 4.25% decrease from the previous period. Orders outside Shandong will be suspended due to a major event on September 3, and non - aluminum downstream industries are resisting high - priced goods, resulting in slower overall sales. In the eastern region, supply is tight due to equipment maintenance, which supports prices. Future price trends will depend on inventory changes and downstream procurement rhythms [14].

Group 1: Market Overview - The domestic liquid caustic soda market in China is experiencing weak transaction volumes, with prices for 32% and 50% liquid caustic soda rising in Shandong and Guangdong, while most regions remain stable [1] - In Shandong, increased downstream demand and limited inventory among chlor-alkali enterprises have contributed to price increases for 32% and 50% liquid caustic soda [1] - The main market prices for 32% ion membrane caustic soda in Shandong are between 800-885 RMB/ton, and for 50% ion membrane caustic soda, they are between 1300-1320 RMB/ton [1] Group 2: Production and Inventory - As of July 10, the weighted average operating rate of sample enterprises in major regions across the country is 85.19%, a decrease of 0.33% from the previous week [2] - The inventory of 32% liquid caustic soda in East China is 187,300 tons, showing a slight decrease of 1.06% from July 2, while in Shandong, the inventory increased by 1.93% to 58,000 tons [2] Group 3: Market Outlook - The overall spot market remains stable, with some regions experiencing price increases due to temporary demand support from key downstream sectors [3] - The supply-demand imbalance is limited, but high profits are encouraging increased production, while trading activity between alumina plants and traders is on the rise [3] - The market is expected to maintain a strong performance in the short term, driven by macroeconomic sentiment and speculative demand [3]