Caustic soda prices remained stable across prominent Asian markets during the first half of October 2025, backed by an even supply-demand relationship and steady industry demand. Although there were some mixed signals in certain countries, steady production costs, and cautious procurement contributed to a broadly steady pricing environment.
Strong market fundamentals support stability
Sodium hydroxide, commonly known as caustic soda, opened the month on a firm note in most Asian markets. Supply and demand were broadly balanced from the start of October, setting a stable tone.
While Japan’s auto sector continued to lag, a signal of weak global production and deferred consumer orders, the construction sector offered modest demand support. In contrast, India’s strong aluminium production and petrochemical growth underpinned caustic soda demand, offsetting weakness in textile exports.
Also read: Mysteel: China alumina prices continue downward trend on supply surplus
Regional highlights reflect caution
In China, pricing was uneven. Shandong saw the sharpest decline, pressured by falling alumina prices and oversupply ahead of the National Day holiday. Jiangsu and Inner Mongolia remained stable, supported by spot-driven procurement.
India’s industrial base remained a bright spot, with firm aluminium production. Domestic demand in the chemicals and manufacturing sectors supported even procurement levels.
Indonesia faced a 15.1 per cent year-on-year drop in auto sales, limiting alumina-linked caustic soda consumption. Construction activity provided some offset. Buyers adopted a defensive stance, focusing on core volumes.
Japan maintained steady domestic consumption despite weak exports linked to US trade frictions. Surveys showed that nearly 90 per cent of Japanese households expected prices to rise, sustaining consumer caution.
Singapore’s improving PMI and stable electricity tariffs kept production costs in check. Optimism in the electronics sector led to a slight uptick in downstream alumina demand, reinforcing pricing stability.
Consolidation expected in the coming weeks
Overall, defensive buying, heavy industry consumption, and stable operating conditions are expected to keep prices consolidated in the short term. According to ChemAnalyst, “Caustic soda prices are expected to remain in the mode of consolidation. Though domestic demand in some regions of the country remains weak and inventories remain high, uninterrupted consumption in heavy industries and defensive buying trends will support prices.”
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