Global Caustic Soda Prices Remain Steady for the Second Consecutive Week of June 2023

In the first half of June 2023, Caustic Soda prices remained stable across the globe owing to the surplus stock availability in the face of weakening economic conditions and low buying enthusiasm. The rising interest rates to limit inflation and the slow recovery in the global economy weighed the product demand in the downstream sectors, including the Aluminium processing and cleaning sector. The market players recorded reducing their production rates to avoid stock piling up.

In the US, Caustic Soda exhibited a stable price trend in the H1 of June 2023, backed by minimal market transactions across the overseas and domestic markets. The US inflation has remained high since the previous month, and the US Central Bank is pushing further with economic tightness to limit the price pressure in the US domestic market. Moreover, energy prices were stagnant despite high inflation in the US market and provided ease in the input cost pressure on Caustic Soda production at the start of June 2023. Nevertheless, the enterprises opted for reduced production due to weak downstream offtakes and kept prices stable.

The European Caustic Soda prices also settled at the same values for the two consecutive weeks of June, backed by the excess regional cargo availability compounded by plunging demand fundamentals in the regional market. Inflationary pressure and escalating interest rates have dampened the downstream demand in the Alumina processing segment amidst high inventories and limited offtakes, as s result which prompted Caustic Soda producers in Europe to reduce run rates at their plants to condense abundance stock in the regional market.

Similarly, Caustic Soda prices were stable in the APAC market in this time frame, with concerns about the gloomy demand in the country's Alumina processing and cleaning industry. The inadequate revival of the economic condition in China deprived the consumer buying sentiments in the domestic market, and sluggish offshore trading activities affected the pricing movement of Caustic Soda flakes significantly. Meanwhile, the Indian Caustic Soda market was also impacted by the restricted cargo movement amid disrupted operations at the Dahej (Gujarat) port amidst a cyclone named Biparjoy during H1 of June 2023.

As per the ChemAnalyst, the Caustic Soda price trend might get influenced by the slight improvement in the downstream demand and limited availability of stocks amidst a reduction in production across the globe. In the US and Europe, Caustic Soda prices are likely to be impacted by the ease in the interest rates and rebound in consumer spending in the downstream sectors during July.