Production: In August, sea salt consumption mainly drew down existing inventories, while raw salt supply was relatively ample. Well-and-rock salt production in North China ran normally and supply was stable, with inventories falling at a relatively fast pace. In August, Shandong brought 1.2 million mt of new well-and-rock salt capacity online, indicating a clear future increase in supply. Early in the month, Middle East geopolitical tensions persisted, keeping ocean freight rates elevated. Downstream chlor-alkali and soda ash producers were generally not enthusiastic about imported salt purchases, kept a wait-and-see stance, and actual transaction volumes were limited.
Monthly raw salt price changes in China
| Market | Aug 2026 | Jul 2026 | Change | Change % |
|---|---|---|---|---|
| North China (well-and-rock salt) | 185-200 | 190-200 | -5/0 | -2.6%/0 |
| North China (sea salt) | 205-215 | 220-225 | -15/-10 | -6.8%/-4.4% |
Unit: RMB/mt
Data source: Chempricehub Information
In August, sea salt prices in North China remained weak, though the pace of decline moderated later in the month. Specification-compliant sea salt is currently priced at RMB 205–215/mt ex-works including tax. Recent rainfall has affected the autumn sea salt harvest to some extent, and output of specification-compliant sea salt from the third-quarter autumn harvest may decline. This supported a slower sea salt price decrease in late August. Sea salt inventories for chlor-alkali production continued to be consumed. As downstream chlor-alkali producers increased their share of well-and-rock salt usage, sea salt destocking slowed. Shandong’s newly added 1.2 million mt of well-and-rock salt capacity came online during the month, intensifying competition as supply increased and pushing well-and-rock salt prices downward. The delivered-to-plant price gap between sea salt and well-and-rock salt narrowed, and sea salt prices declined in tandem.
In East China, well-and-rock salt inventories showed no significant improvement, and outbound shipments from the region continued. East China chlor-alkali companies may increase their use of well-and-rock salt in the future, slightly easing sales pressure. Regional well-and-rock salt prices remained largely stable, with downstream purchases still mainly based on rigid demand.
In Northwest China, lake salt and well-and-rock salt prices were stable. Lake salt supply was steady, with downstream chlor-alkali and soda ash producers purchasing on an as-needed basis and mainly fulfilling prior orders. Well-and-rock salt supply was stable, and company price adjustments were modest. Operating rates in Northwest China have recovered somewhat, increasing raw salt demand.
In July 2026, China’s raw salt imports totaled 888,541.34 mt, up 31.47% month-on-month and down 12.08% year-on-year, with an average import price of USD 34.98/mt. As Middle East geopolitical tensions eased slightly at the end of June and domestic raw salt prices were in an uptrend at the time, Chinese buyers became more willing to purchase imported salt. July raw salt arrivals were therefore significantly higher than in June. At present, domestic raw salt prices are trending down, competition in the domestic market is intense, and imported salt no longer has a clear price advantage upon arrival. Downstream chlor-alkali and soda ash producers have consequently become increasingly wait-and-see.
Chlor-alkali demand: In August, the North China liquid caustic soda market remained divergent. In Shandong, prices were broadly stable in the first half of the month. In the latter half, driven mainly by the western Shandong area, prices experienced phased upticks, but higher prices were difficult to sustain in some locations. Toward the end of the month, local prices softened again. In Cangzhou, Hebei, discount strategies were flexibly adjusted based on inventory levels, while base prices changed little. The Hengshui area had unstable operating loads but remained largely stable for most of the month, later following the western Shandong increases. In Tianjin, operating rates were steady, and with relatively low preferential quotes in Cangzhou, local prices declined moderately during the month.
Soda ash demand: In August, the domestic soda ash market showed signs of stabilization. A few producers raised prices slightly at the end of the month. On the supply side, maintenance shutdowns ended and output remained high, though some producers had operational irregularities, causing output fluctuations. Looking at the trend, more producers are expected to conduct maintenance next month, including several large plants, so soda ash supply is expected to decline. On the demand side, downstream demand was ordinary, with only low-price replenishment and little intention to build raw material inventories. Downstream consumption was weak, and capacity in some sectors declined. Overall, production and sales remained unbalanced, and inventories trended upward. Spot prices were low, and the industry was in a loss-making state. Futures prices rebounded, boosting spot-futures arbitrage procurement and raising soda ash plant order backlogs. Spot prices stabilized, and some companies made narrow upward price adjustments.
Forecast: The raw salt market is expected to ease modestly in September. Recently increased rainfall has affected the autumn sea salt harvest, raising uncertainty over harvest output. Specification-compliant sea salt production is expected to decline, and sea salt prices may show signs of stopping their decline in the short term. After Shandong’s new 1.2 million mt well-and-rock salt capacity is commissioned, well-and-rock salt supply will be even more ample, and market competition may intensify. As downstream chlor-alkali producers increase their use of well-and-rock salt, the impact of a smaller sea salt harvest will be somewhat weakened.
On the demand side, planned maintenance in North China is essentially complete, and chlor-alkali operating rates are expected to rise, leading to greater raw salt demand. Given weak profitability in the chlor-alkali and soda ash markets, downward pressure on raw material costs will remain. Domestic raw salt prices are therefore expected to decline for the most part in September.
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