April 22 News — On April 22, Shandong Xinfeng lowered its liquid caustic soda prices. The quotation for 32% ion-exchange membrane caustic soda dropped by 20 yuan/ton to 620 yuan/ton, while the quotation for 50% ion-exchange membrane caustic soda decreased by 40 yuan/ton to 1,100 yuan/ton. The annual production capacity of the facility is 1.13 million tons.

Chempricehub Analysis on Caustic Soda, Bull-Bear Score: -1
The article reports that Shandong Xinfeng has reduced its liquid caustic soda prices. The quotation for 32% ion-exchange membrane caustic soda fell by 20 yuan/ton to 620 yuan/ton, and the quotation for 50% ion-exchange membrane caustic soda dropped by 40 yuan/ton to 1,100 yuan/ton, representing declines of approximately 3.1% and 3.5%, respectively. This reflects ample market supply or weak demand, exerting significant downward pressure on spot prices of caustic soda.

In the caustic soda futures market, the main contract, such as 2607 (settlement price 2,085 yuan/ton), rose by 20 yuan on April 21. However, the signal of spot price reductions may constrain further upward movement in futures prices. It is anticipated that short-term futures prices face a risk of correction. Changes in open interest indicate reductions in some contracts (e.g., open interest for 2605 decreased by 4,479 lots), suggesting a shift toward cautious market sentiment. Therefore, a general bearish score of -1.0 is assigned.