Caustic Soda (Flakes) Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Caustic Soda (flakes) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Caustic Soda (flakes) Price Trend for the Second Half of 2023

Asia

The price graph of caustic soda (flakes) showed significant swings in the last two quarters of 2023. Throughout Asia, the Chinese market saw generally bullish sentiment, with monthly average spot prices rising slightly between October and December and maintaining a moderate trend during the earlier months.

Caustic Soda (Flakes) Price Chart

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On the other hand, spot prices for caustic soda (flakes) in India decreased consistently from July to December, indicating a minor slump in the industry. The downfall of the sector in the Asian countries was attributed to the limited growth of the industrial sector and the loss of exports due to the ongoing Israel-Hamas crisis.

Europe

The prices for caustic soda (flakes) fluctuated within a narrow range, indicating significant unpredictability of the European countries. As compared to the first and second quarters, the first half of H2'23 showcased more consistency in the market trends as the consumers experienced some relief in inflation. Additionally, the disruption of the Red Sea route lowered the influx of Asian imports in the countries which helped in stabilizing the supply-demand equilibria, favoring stagnancy in the caustic soda (flakes) price trend.

North America

As compared to its Asian and European counterparts, the North American caustic soda (flakes) market's performance remained below par throughout the third and fourth quarters of 2023; the New Year holiday season slowed down the industrial demand for the commodity which resulted in a downturn in the market trends for American caustic soda (flakes). Additionally, the decline in the cost of production and raw materials constricted the expansion rates of caustic soda (flakes) prices during the aforementioned period.

Analyst Insight

According to Procurement Resource, the price trend of Caustic Soda (flakes) is expected to be based on the performance of the downstream and feedstock industries.

Caustic Soda (flakes) Price Trend for First Half of 2023

Asia

The market for caustic soda (flakes) showed a stable trend in the first quarter of 2023 as the gradual incline in the number of orders, and a slight decline in inflation helped the market activities of caustic soda (flakes) to grow.

In China particularly, after the long season of holidays and COVID restrictions, several industries raised their rates of production, supporting the caustic soda (flakes) market. But, the situation in South Korea was bleak due to rising stock volumes and high uncertainties. In the second quarter, the trend faced a declining trajectory as the rising cost of energy raised the production costs, thus proving to be a challenge for the caustic soda (flakes) prices. In addition to this, the level of inventories further increased due to low demand from both domestic and international markets.

Europe

The first quarter of 2023 was affected by the high uncertainties in the European markets and the limited purchasing potential of buyers that led to the decline in the price trend of caustic soda (flakes). However, the downstream aluminium and other related industries helped by keeping the number of new inquiries in the positive zone, but the rates of procurement from overseas buyers remained a cause of concern in the first quarter.

In the second quarter, the trend moved towards stability as amid the low demand, labor strikes and restricted supply of caustic soda (flakes) created a shortage of products, balancing the demand-supply equilibria. Further, the slow movement of the European economy and consumer interest ultimately led to the fall in the price trend of caustic soda (flakes).
                                                                                                                                   
North America

In North America, the prices of caustic soda (flakes) followed a consistent declining trajectory as the plunging demand from the downstream agrochemical and cleaning sectors, along with the high level of inventories, hampered the growth of caustic soda (flakes) price trend.

The supply and demand gap in the first quarter widened gradually as the movement of shipments in the region faced several disruptions. Along with these challenges, the second quarter also suffered from the problem of a high influx of products, feeble movement of the North American economy, and poor performance of downstream industries, keeping the price trend of caustic soda (flakes) in the negative zone.

Analyst Insight

According to Procurement Resource, the price trend of Caustic soda (flakes) is expected to follow a southwards trajectory as the demand from the agricultural and cleaning sector and the surge in the level of inventories will affect the caustic soda (flakes) price trend negatively.

Procurement Resource provides latest prices of Caustic Soda (Flakes). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.