Wuxi High Mountain Hi-tech Development Co., Ltd. is pleased to present the January 2026 Monthly Analysis for the Caustic Soda Flakes market. As a specialized leader in chemical supply chains, we provide this deep dive into price fluctuations, production capacities, and the macro-economic factors shaping the Chinese alkali industry.

1. Market Dynamics: A Strategic Mid-Month Shift

Throughout January 2026 (Jan 1st – Jan 27th), the domestic Caustic Soda Flakes market underwent a period of strategic price adjustment. The nationwide average price for solid caustic soda closed at 3,080 RMB/ton, reflecting a minor MoM decrease of 0.29%.

The "Pre-Holiday" Paradox: In early January, manufacturers in Inner Mongolia and Shaanxi lowered their quotes by 50-80 RMB/ton to stimulate sales amidst high inventory levels. However, as the Spring Festival approached in late January, the imminent suspension of hazardous material logistics triggered a wave of "panic buying" from downstream traders. This temporary supply tightening effectively stabilized the market, shifting the focus from "price-cutting" to "order-fulfillment."

2. Supply Side: Operational Rates and Output Analysis

The supply of Caustic Soda Flakes remained resilient in January:

• Total Capacity: China's Chlor-alkali capacity currently stands at 51.798 million tons, with an impressive overall operating rate of 89.66%.

• Segment Production: The specific Caustic Soda Flakes sector maintained an operating rate of 72.29%, with a projected monthly output of 500,000 tons.

• Supply-Side Optimization: Major plants in Inner Mongolia dynamically adjusted the ratio between Liquid Caustic Soda and Flakes based on profitability, preventing a massive inventory glut.

3. Downstream Sector Performance: Divergent Demand Profiles

For global stakeholders, understanding China’s internal consumption is key to predicting export availability:

• Alumina (The Primary Driver): The Alumina industry faced challenges in January, with an operating rate of 78.66%. High production costs led to reduced activity in Shanxi and Henan provinces, resulting in stagnant demand for high-volume caustic soda purchases.

• Specialty Chemicals (The Growth Engine): Conversely, sectors such as Lithium Hydroxide (crucial for EV batteries) and Ammonium Paratungstate saw prices skyrocket due to tight supply and high feedstock costs. These industries provided the necessary "demand floor" to prevent a steeper decline in alkali prices.

4. Regional Price Benchmarks for Global Logistics (As of Jan 27)

For international buyers calculating Landed Cost, please consider these ex-factory and delivered price points:

• Northwest China Hubs (Xinjiang/Ningxia): 2,300 - 2,650 RMB/ton (Ex-factory).

• Eastern China (Coastal Consumption Zone): Delivered price via truck/rail at 3,050 - 3,150 RMB/ton.

• Southern China (Manufacturing Hubs): Delivered price at 3,200 - 3,250 RMB/ton.

5. Strategic Forecast for February 2026

Wuxi High Mountain’s analytical team predicts a "Stable-to-Soft" transition in February. While production will remain constant, the Spring Festival holiday will inevitably lead to a build-up of inventory at factories. Once logistics resume in late February, we expect a flexible price adjustment, likely a reduction of $7 - $14/MT to facilitate inventory clearance.

About Wuxi High Mountain Hi-tech Development Co., Ltd.

Leveraging decades of chemical industry expertise, Wuxi High Mountain serves as your reliable bridge to China’s top-tier chemical manufacturers. We specialize in the export of Caustic Soda Flakes, PVC Resin, and MCAA, ensuring rigorous quality control and efficient global logistics.

Contact our export desk or visit our official site for real-time quotes: https://www.wxhmchem.com/