Shouchuang Futures: Domestic demand is relatively weak, and caustic soda futures prices are fluctuating weakly.

Spot Market, Shandong 32% Ion Exchange Membrane Alkali Weekly Average 737 Yuan/ton, up 2.93 percentage points week-on-week.
In terms of supply, this week the average utilization rate of domestic enterprises with a capacity of 100k tons or more for caustic soda is 85.7%, an increase of 1.1 percentage points week-on-week.
The inventory at factory warehouses of nationwide enterprises with a capacity of 200k tons or more for fixed liquid caustic soda is 530.3k tons (wet basis), an increase of 0.94 percentage points from the previous week, and an increase of 8.44 percentage points year-on-year.
Fewer chlor-alkali plants are undergoing maintenance, and it is expected that next week’s caustic soda capacity utilization rate will rise to 86.1%, with a weekly output of 867k tons.
Supply remains high.
On the demand side, this week the downstream alumina operating rate decreased by 0.1 percentage points, and viscose short fiber capacity utilization rate decreased by 2.23 percentage points week-on-week.
The new alumina capacity in Guangxi is expected to start gradually releasing production in mid to late April, but some alumina plants in the southwestern region have maintenance plans recently, which may affect caustic soda demand.
In summary, domestic demand is relatively weak, and caustic soda continues to accumulate inventory.
It is expected that short-term caustic soda futures prices will fluctuate within a narrow range, with attention to geopolitical situations, domestic and foreign plant changes, and the progress of new downstream capacity releases. (First Capital Futures)