First Capital Futures: Weakening demand expectations, caustic soda futures prices stop rising and fall back

Weak demand favors production cuts and positive hedging, with caustic soda experiencing a brief rebound before weakening again. Shandong 32% ion-exchange membrane caustic soda is at 600 yuan/ton, stable compared to the previous trading day. In terms of supply, profitability for Shandong chlor-alkali companies is poor, some companies are reducing production, leading to decreased supply, and liquid caustic soda prices remain stable. Most chlor-alkali producers in other regions are operating steadily with sufficient supply. On the demand side, some downstream companies have reduced production or halted operations before the holiday, resulting in a seasonal decline in overall demand. It is expected that aluminum oxide, due to losses, will see a slight decrease in capacity utilization, which may further suppress procurement prices. In the short term, caustic soda futures are expected to remain in a low-range oscillation, with attention to plant start-up changes and the main downstream delivery volume. (First Capital Futures)