[Soda ash]3.4 Soda ash Daily Review: Soda ash market prices maintain a downward trend

Analysis of soda ash market

Today, the market price of soda ash in China maintains a downward trend. As of now, the price of light soda ash in South China is 2,150 - 2,200 yuan/ton, and the price of heavy soda ash is 2,300 - 2,400 yuan/ton; the price of light soda ash in East China is 1,950 - 2,300 yuan/ton, and the price of heavy soda ash is 2,050 - 2,200 yuan/ton; The overall start-up of the soda ash market remains at a high level. As soda ash companies have successively adjusted the prices of new orders and the inventory consumption of downstream companies, the signing of new orders in the market has improved today. However, as soda ash prices have been continuously lowered, companies have been more cautious in purchasing and are in need. Focus on the market, the market remains weak.

Futures dynamics

According to Boduo data, the opening price of SA2405, the main contract for soda ash, on March 4, was 1796 yuan/ton, and finally closed at 1832 yuan/ton, an increase of 2.35% within the day. The highest intraday session was 1833 yuan/ton, the lowest was 1761 yuan/ton, with a total position of 576994 lots, a month-on-month period of-11805 lots.

Today, the main contract for soda ash fluctuated upward within a narrow range. Today, news of centralized soda plants meeting to insure prices and maintenance of some soda plants in March was heard. The current market prices were already highly contradictory. Affected by this news, the panic exit of short sellers rose sharply, once rising to 1800 yuan. However, some news later falsified and market sentiment also fell. The spot market is still filled with a pessimistic atmosphere. However, the current increase on the supply side has basically been realized and there is no negative driver for further growth. The demand side is currently reducing purchases and digesting its own inventory. The situation of new orders from soda plants in the short term is not good, but there is still a need for replenishment from downstream light soda companies. The short-term market may still be oscillating around 1750 to wait for new drivers.

market outlook

The supply-demand relationship in the soda ash market is difficult to change in the short term. Market shipments are under pressure. The price of new soda ash orders is stable and downward. Market purchasing sentiment is weak. Most of them are bearish on the future outlook. Moreover, the market is constantly impacted by low-cost sources, and the soda ash market will be stable and weak.