Abstract: With the advancement of global economic recovery, there has been a certain degree of fluctuation in the domestic raw material market. In August, the prices of raw materials such as alumina, caustic soda, and coal in China are expected to experience some fluctuations.
With the advancement of global economic recovery, there has also been a certain degree of fluctuation in the domestic raw material market. In August, the prices of raw materials such as alumina, caustic soda, and coal in China are expected to experience some fluctuations.
Firstly, the price of alumina raw materials is expected to fluctuate in a narrow range. Recently, the price of alumina has continued to rise, and the restoration of profits has driven an increase in production willingness, which is expected to increase demand. However, the domestic bauxite mining capacity is insufficient, and the tight supply of domestic bauxite is difficult to alleviate, which will have a certain impact on the production and price of alumina. Therefore, it is expected that domestic bauxite prices will continue to fluctuate at high levels in August.
Secondly, the price of caustic soda may rebound. Although it is still difficult to reach the bottom of caustic soda prices at present, some downstream industries are starting a new round of bidding and procurement. In addition, the traditional peak season of the industry is approaching, and with suitable liquid alkali prices, the procurement volume may increase. In addition, the production of liquid caustic soda has been declining for several consecutive months, and the market supply and demand gap has gradually narrowed, which also provides some support for the rebound of caustic soda prices.
Finally, coal prices will fluctuate weakly in the range. The supply of coal from the main production area remains stable, and the national hot weather is gradually decreasing, and the daily consumption of power plants will also decrease slightly. In addition, the heavy rainfall brought by the typhoon has also affected the coal market, and hydropower may improve, further driving a reduction in downstream procurement demand. At the same time, the long-term supply of electricity and coal is abundant, and the demand for non electricity procurement is relatively low. Under the trend of loose supply and high inventory in power plants, it is expected that coal prices will continue to fluctuate weakly in August.
In summary, it is expected that the domestic raw material prices in August will exhibit a narrow range of fluctuations in alumina, a rebound in caustic soda, and a weak range of fluctuations in coal.