China Liquid Caustic Soda Market Update: Shandong Prices Stay Soft, Caustic Soda Flakes Move Lower

China's caustic soda market stayed soft during May 22-28, 2026. Shandong 32% ion-exchange membrane liquid caustic soda averaged RMB 603/mt, about USD 89/mt using RMB 6.8/USD, down 0.33% week on week, while Northwest China 98% flake caustic soda fell to around RMB 2,330/mt, about USD 343/mt. For overseas buyers, the market still requires careful timing because plant maintenance, inventory movement and downstream alumina demand are pulling prices in different directions.

Market Overview

In Shandong, 32% liquid caustic soda was broadly stable with small mixed adjustments across sub-regions. Southern Shandong remained under pressure from higher inventory, while some brands in southwestern Shandong saw moderate support after inventories declined. Shandong 50% liquid caustic soda averaged around RMB 1,020/mt, about USD 150/mt using the same exchange-rate basis, roughly stable from the previous week.

Solid-form sodium hydroxide also weakened. Northwest China 98% flake caustic soda moved from around RMB 2,400/mt, about USD 353/mt, to RMB 2,330/mt, about USD 343/mt, down RMB 70/mt, about USD 10/mt, or 2.92% week on week. This price movement is important for buyers comparing liquid caustic soda with Caustic Soda Flakes for export, container shipment and storage.

Supply and Inventory

China's caustic soda sample producers with capacity of 100,000 mt/year and above reported an average operating rate of 79.4%, down 0.4 percentage points from the previous week. Several chlor-alkali units were shut or running at reduced load for maintenance, although some units also restarted during the same period. The supply reduction was therefore visible but not strong enough to reverse the cautious market tone.

As of May 28, fixed liquid caustic soda sample producers with capacity of 200,000 mt/year and above held factory inventory of about 523,300 wet tons, down 7.47% week on week but still 30.53% higher year on year. The weekly destocking improved short-term shipment pressure in some regions, but the high year-on-year level means buyers still need to watch inventory direction closely.

Regional Demand Signals

East China liquid caustic soda moved stable to weak. Some Jiangsu producers entered planned maintenance, but month-end contract negotiations and cautious downstream buying kept prices under pressure. South China was mostly stable, with downstream users buying on a need-based basis and limited willingness for large replenishment.

In Southwest China, earlier maintenance recovery increased supply, while low-priced cargoes from outside the region continued to weigh on local prices. In Central China, higher-concentration caustic soda continued to move outward, and non-alumina downstream demand was mainly based on immediate production needs.

Downstream and Related Markets

Alumina remained the key downstream sector to watch. Weekly alumina operating rates were reported around 82.2%, slightly higher than the previous week. Recent concern over bauxite supply stimulated alumina futures and encouraged some buyers to inquire for replenishment, but spot activity was still not very active and the market kept a wait-and-see tone.

Liquid chlorine prices in Shandong moved lower, while caustic soda prices also weakened. Chlor-alkali margins narrowed, with theoretical gross profit in Shandong reported around RMB 66/mt, about USD 10/mt, down from the previous week. Lower margins may limit the room for further aggressive liquid caustic soda price declines, even if supply is expected to recover next week.

Buyer Considerations

For international buyers, this market creates both opportunity and risk. A softer China caustic soda market may improve negotiation conditions, but buyers should not compare liquid and solid products only by headline price. Liquid caustic soda requires tank storage, suitable handling and different freight arrangements, while flakes are usually more practical for containerized export, longer storage and smaller-lot distribution.

Before confirming an order, buyers should specify NaOH content, product form, packing, quantity, destination port, shipment window and certificate requirements. Jinan ZZ International Trade Co., Ltd. can support overseas buyers with sodium hydroxide inquiries and provide quotations based on current market conditions and export logistics.

Short-Term Outlook

The short-term liquid caustic soda market in Shandong is expected to remain weak because shipment and destocking pressure still exists, while some maintenance units are scheduled to restart and may add supply. However, weak liquid chlorine and lower chlor-alkali profitability may restrict the downside space for liquid caustic soda.

For flake caustic soda, recent price cuts by major Northwest producers are expected to continue influencing spot transactions. Buyers should monitor actual transaction levels in major regions, alumina procurement negotiations in Shanxi and Henan, and the pace of chlor-alkali plant restarts before placing large-volume orders.

FAQ

Why did Shandong liquid caustic soda stay soft this week?
Prices stayed soft because downstream buying remained cautious, some regions still faced shipment pressure, and the market expected some supply recovery after maintenance.

Why did Caustic Soda Flakes prices move lower?
Northwest flake caustic soda prices fell after mainstream producer pricing moved down, which gradually affected spot market transactions and trader sentiment.

Should overseas buyers choose liquid caustic soda or flakes?
Liquid caustic soda can suit buyers with tank storage and nearby supply, while flakes are often more practical for container shipment, storage flexibility and smaller-lot distribution.

What information is needed for a sodium hydroxide quotation?
Please provide product form, NaOH content, quantity, packing, destination port, shipment time and any COA or documentation requirements.