The supply of caustic soda in China is tight, while demand in the alumina industry is rising

The delivery schedule is becoming increasingly tight.

Supply side:

The production of Zhongtai Nenghua is seriously abnormal, with a daily output of 600 tons of equipment only capable of producing 400 tons of goods. There are 13000 tons of undelivered import and export orders , and there have been orders received recently.

The overdue order has been over 2 months, and we plan to produce 7000 tons of foreign alkali for delivery next week. Affects domestic trade production by 1000 tons per day.

The Xinjiang Zhongtai plant is under significant pressure at the end of 2024

In terms of demand:

Southern alumina factories are urgently requesting deliveries, with two major alumina companies in Baise, Guangxi demanding shipments of 1,000 tons per day from Zhongtai. Chongqing alumina still has 15,000 tons of overdue orders from before October, which must be fulfilled by the end of the year. Guizhou and Yunnan are facing significant shortages and have been persistently pressing for deliveries through various channels. Zhongtai is under immense pressure to meet these demands, and its sales team is struggling to manage the situation on a daily basis with no viable alternatives.

Chinalco plans to place continuous procurement orders totaling over 70,000 tons within the next two months. The tight supply of caustic soda is expected to persist until January.