[Soda ash] Soda ash Weekly Review: Soda ash prices are stable and declining, and market supply continues to be high

1. Analysis of China's soda ash market

This week, the spot price of soda ash in China has stabilized and declined. As of now, the price of light soda ash in China is between 1,850 - 2,300 yuan/ton, and the price of heavy soda ash is between 2,100 - 2,350 yuan/ton. soda ash companies have started to operate at a high level, coupled with the new production capacity of individual companies, market supply continues to increase; Demand in the downstream market is weak, companies are not active in purchasing intentions, and some companies maintain just need to purchase. The shipping pressure of soda ash companies has increased. In addition, soda ash prices have been continuously lowered, and the market has a strong wait-and-see attitude. This week, some soda ash manufacturers have quoted new orders one after another, and the price of new orders has been lowered to around 200 yuan/ton. Some manufacturers have obvious accumulation of warehouses, and the soda ash market is weak.

In terms of futures, due to negative market feedback such as spot price cuts, the soda ash futures 05 contract price once again struggled after falling below 1800 yuan/ton at the beginning of the week. As important meetings approached, market news was disturbed repeatedly, macro sentiment warmed up, and soda ash prices, which were already supported by costs, were once again blocked. The overall trend during the week was dominated by shocks.

Forecast for next week: There is no maintenance plan in the soda ash market in the near future, and the market starts to remain high; at the end of the month, some companies have successively adjusted the prices of new orders, and some companies have experienced a relatively large decline, and soda ash prices have continued to fall; downstream demand has gradually returned to normal, but the market has been affected by buying and selling. Whether buying and selling, the recent market purchasing sentiment has not been high, and the focus is on watching the market, and the soda ash market will remain weak in the short term.

2.  Comparison of market prices of soda ash in regions

Unit: yuan/ton

3. Soda ash process profit statement

As of February 29 this week, the profit of the combined alkali method was 642 yuan/ton, down 138.2 yuan/ton from the previous week; the profit of the ammonia-alkali method was 351 yuan/ton, down 234.5 yuan/ton from the previous week.

4. Equipment maintenance of soda ash enterprises

About 91% of the soda ash industry started this week, an increase of 1.11% from last week. According to incomplete statistics, the output of soda ash manufacturers this week is about 748,000 tons.

5. Soda ash manufacturer inventory

The total inventory of Chinese soda ash manufacturers this week was 850,000 tons, compared with around 750,500 tons last week, an increase of 99,500 tons month-on-month, or 11.71%.