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Alkali, also known as sodium hydroxide, is an important basic chemical raw material, widely used in pulp and paper, textile, printing and dyeing, petroleum, chemical fertilizer, chemical reagents and other fields. Its price fluctuation is affected by many factors. This paper will analyze the main factors affecting the price of flake alkali in detail.
The production of flake mainly depends on electrolysis, in which sodium chloride (table salt) and electricity are the most important raw materials and energy. The price fluctuation of table salt will directly affect the production cost of flake. Changes in electricity prices are also a key factor, with electricity costs accounting for a large proportion of the cost of caustic soda production. If the power supply is tight or the electricity price is raised, it will directly push up the production cost of the caustic soda, thus affecting its market price.
The relationship between market supply and demand is one of the important factors affecting the price of caustic soda. When market demand increases and supply is insufficient, the price of caustic soda tends to rise. Conversely, when supply exceeds demand, prices fall. In recent years, with the tightening of environmental protection policies, some small-scale production enterprises that do not meet the standards have been forced to stop production or limit production, resulting in a reduction in market supply, thereby driving up the price of caustic soda. Fluctuations in demand in the downstream industry will also directly affect the market price of caustic soda.
Environmental policies have an important impact on the caustic soda industry. Strict environmental regulations require manufacturers to increase investment in environmental protection and increase the cost of environmental protection equipment and process improvement, thereby pushing up production costs. For example, the Chinese government has strengthened its supervision of emission standards for chemical companies in recent years, requiring companies to carry out technological transformation to meet environmental protection standards.
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