First Capital Futures: Supply and demand are relatively weak, and caustic soda futures prices fluctuate and decline

On the supply side, Shandong chlor-alkali companies are experiencing poor profitability, with some reducing production, leading to decreased supply and stable caustic soda prices. Most chlor-alkali producers in other regions maintain stable production and sufficient supply. Last week, the domestic caustic soda plant capacity utilization rate slightly declined week-on-week, but company inventories increased week-on-week, and overall supply remains high. On the demand side, some downstream companies reduced production or halted operations before the holiday, resulting in a seasonal decline in overall demand. Due to losses, alumina production capacity utilization is expected to decline slightly, which may further suppress procurement prices. Supply and demand remain weak, and it is expected that short-term caustic soda futures will stay volatile and weak, with attention to plant operation changes and main downstream delivery volumes. (First Capital Futures)