Night trading: Caustic soda price increased by over 2%, subsequent focus should be on changes in liquid chlorine prices and spring inspection expectations.

Night trading sees caustic soda prices rise over 2%. Hua Wen Futures research report indicates that on the supply side, the latest sample companies have a capacity utilization rate of 87.8%, a slight increase of 0.1% month-on-month, with a weekly output of 864,000 tons, up 10,000 tons from the previous week; some companies in Central China are undergoing maintenance, but overall industry operation remains high. On the demand side, there is a clear divergence, with main downstream aluminum oxide operating at 84.0%, down 0.8% month-on-month, affected by tight bauxite supply and poor profit margins leading to weak procurement; viscose short fiber capacity utilization remains steady at 88.43%, with non-aluminum sectors showing rigid demand procurement. In terms of inventory, sample factories hold 471,400 tons, down 9,410 tons from the previous month; low-price clearance in North and East China is evident, but inventory is up 2.97% year-on-year, indicating ongoing inventory pressure. On the profit side, chlor-alkali profits are divided, with losses increasing for companies without self-owned power plants, while those with self-owned power plants are near break-even. Overall, strong supply and weak demand combined with high inventory exert pressure; additionally, the cold wave in the north may impact upstream shipments, inventory buildup, and transportation. Short-term prices may gradually shift to oscillation, with future focus on changes in liquid chlorine prices and spring maintenance expectations; a reversal may occur when production volume significantly changes.