The market of Caustic Potash showed a constant price trend for the last fortnight across the APAC region. Despite disruptions in supply chains which are causing external pressures on prices, including fluctuating energy prices as a result the cost of caustic potash has remained unchanged. Major producers and consumers including China, India, and South Korea, have noted only slight changes in pricing trends.

In China, the local supply has remained steady, as no notable disruptions in production observed. Additionally, the industrial sectors, particularly the manufacturers of soap and detergents, have shown no considerable increase or decrease, which has reinforced the stability in prices. In South Korea, due to the steady demand, the FMCG manufacturers have maintained stable production levels in order to meet the Caustic Potash market demands. The expected rise in FMCG sales as the demand shows an upward trend and the stockpiling activities can be seen in some soaps and detergent manufacturers across semi-urban areas. Nonetheless, energy expenses have impacted demand in countries that import goods, and the lack of significant disruptions in supply chains has also played a role in maintaining caustic potash prices. The output from manufacturing has stayed stable, bolstered by a steady influx of new business. As a result, both buying activity and inventory levels have remained steady. Business sentiment has improved in recent weeks, although companies have remained cautious regarding hiring, as employment levels have decreased rapidly. In Malaysia, the manufacturing index is continuing at a slower pace, though still showing positive trends, with year-on-year improvements in official manufacturing production, Production levels of Caustic Potash remained subdued, with the seasonally adjusted index staying below the neutral 50.0 mark which is primarily due to the low demand and reduced output. No port congestion is observed as the business activities have been usual with Drewry’s world container index decreased by 6% last week. This decrease in freight rates supports the imported caustic potash from the overseas market.

As per ChemAnalyst, the caustic potash market is displaying a cautious optimism for the upcoming months, with expectations for a potential drop in prices. Although the current stability is forecasted to last until February, several factors suggest that price reductions could be on the horizon. Key aspects include the possibility of falling energy prices and the stabilization of worldwide chemical demand, which might lead to decreased production costs. Should these trends persist, FMCG manufacturers could benefit from lower raw material costs, potentially allowing them to offer more competitive prices for Caustic Potash and improve their profit margins.