NAV

1. Market Overview: Stability with Localized Volatility

The domestic chlor-alkali market as of May 12, 2026, shows a multifaceted performance. While the core commodities like PVC and Calcium Carbide remain largely stable, the liquid chemicals—specifically Caustic Soda and Liquid Chlorine—are experiencing regional price adjustments driven by facility maintenance schedules and fluctuating logistics costs.

2. Segment Analysis: Price Trends and Drivers

A. Liquid Caustic Soda: Regional Adjustments and Supply Tightening

• Market Sentiment: Flexible price adjustments are occurring across key hubs.

• Regional Dynamics: In Shandong (Jining), operating rates have dipped slightly due to safety inspections, while the Binzhou area expects further reductions. Demand from alumina refineries in Hebei has provided a localized boost. In Southern China (Shanghai), planned maintenance is further tightening supply, supporting potential upward price flexibility in neighboring regions.

B. Caustic Soda Flakes: Resilient Pricing Amid Cost Pressures

• Market Sentiment: Shipments remain steady with a strong emphasis on maintaining current price levels.

• Key Drivers: Maintenance in Northwest and Shandong provinces continues to restrict overall supply. Although producers are keen on holding prices firm, rising logistics costs (due to fuel price hikes and tightened hazardous material transport regulations) are compressing profit margins.

C. Liquid Chlorine: Divergent Trends and Regional Mismatch

• Market Sentiment: Mixed price movements depending on downstream profitability.

• Supply-Demand Play: Prices in Shandong (Jining) rose by approximately 50 RMB/ton due to reduced supply. Conversely, in Jiangsu, the resumption of production has increased availability, leading to price corrections. Demand in Anhui remains modest, keeping prices under slight pressure.

D. Industrial Salt & Calcium Carbide: Consolidating at Current Levels

• Industrial Salt: Expected to trade steadily with an average ex-factory tax-inclusive price of approximately 241 RMB/ton. Well-salt production is stable, while sea-salt output is expected to increase as seasonal harvesting begins.

• Calcium Carbide: Market prices remain flat. Ex-factory prices in the Wuhai region (Ningxia) are hovering around 2,300 RMB/ton. Procurement from downstream PVC plants in the Northeast and Shaanxi has slowed slightly as they approach scheduled maintenance periods.

E. Hydrochloric Acid: Firming Upward Trend

• Market Sentiment: Prices are trending slightly higher due to supply-side constraints.

• Dynamics: Maintenance at chlor-alkali plants in Shandong and Sichuan has notably reduced market supply. Low inventory levels in Anhui provide strong bottom support. Prices for 31% Synthetic Acid are currently concentrated in the 100–300 RMB/ton range.

F. PVC: Narrow-Range Consolidation

• Carbide-Process PVC: Prices are seeing a marginal upward trend in East and South China hubs. However, weak downstream demand from terminal markets continues to limit any significant rally. Trading remains centered in the 4,900–5,050 RMB/ton range.

• Ethylene-Process PVC: Market remains stable. Downstream inquiry activity is low, with actual transaction prices largely determined through negotiation. Expected trading range is 5,500–6,050 RMB/ton.

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3. HM Perspective: Navigating Maintenance and Logistics

At Wuxi High Mountain Hi-tech Development Co., Ltd., we observe that the market is currently in a balancing act. While localized maintenance provides supply-side support, the slow recovery of downstream rigid demand and rising transportation costs act as a ceiling for price increases.