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Cause of drastic caustic soda price fluctuation and forecast for 2018
°™°™Li Yun, Minister of Financial Markets in Zhongtai Chemical,

2018-05-24 09:59:06
Li Yun, Minister of Financial Markets in Zhongtai Chemical, presented his report of Cause of drastic caustic soda price fluctuation and forecast for 2018 
Mr. Li shared the status quo about caustic soda, made forecast on future development and also introduced Zhongtai Chemical. He thought sharp fluctuation of caustic soda price was mainly attributed to the following points: 

1. Tightly balanced capacity. Caustic soda capacity may witness stable development in the future although it witnessed some twists and turns in past years. Operating rate of caustic soda industry grew stably in rent years. 

2. Capacity and product structure had their own features. A. Upstream big-scaled companies increased. B. Most capacity was intensive in medium-scaled enterprises and regional characteristic was prominent. C. Caustic alkali output differed in different regions on various supply and demand situation. D. Alkali price affected caustic soda price to a certain extend. E. Finished products of caustic soda downstream market were small and sparse, with weak bargaining capability. 

3. Caustic soda industry faced some challenges and limitations. A. Intensified and Normalized environmental protection regulation. B. Corresponding administrative regulations regulate dangerous transportation. C. Relevant laws and regulations strictly control the production of caustic soda to maintain a good and natural environment. 

Finally, future forecast was made. A. In the future, the increase in supply of caustic soda will be limited and the elimination of backward production capacity will accelerate. According to relevant administrative regulations and national environmental protection policy requirements, guide and promote enterprise restructuring, finishing industrial upgrading and technological progress. B. Demand for caustic soda is supposed to increase stably in the future, and export may keep above 1500kt. C. Alumina capacity is expected to rise gradually in the future, with higher demand for caustic soda. Caustic soda price is anticipated to be above 3000yuan/mt in the future, or even above 5000yuan/mt. 

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