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[Soda ash] Soda ash Weekly Review: High soda prices fluctuate, market supply and demand game is obvious

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May 31, 2024, 5:31 PM

1. Analysis of China's soda ash market

This week, China's soda ash market fluctuated upward. As of Thursday, China's light soda ash prices are between 2,250 - 2,350 yuan/ton, and the heavy soda ash prices are between 2,250 - 2,450 yuan/ton. This week, some manufacturers in China maintained maintenance status, and the market was still under construction. The supply of soda ash has decreased; some orders from the soda factory, and the manufacturer's inventory continues to be removed from the warehouse, and the price has increased. However, the inventory concentration in some areas is more obvious, and the market production and sales are basically balanced; As downstream procurement has been completed one after another, the market transaction atmosphere has weakened. The market remains in need of replenishment. It is still resistant to high-priced soda ash, and low-priced transactions are better; the soda ash market as a whole remains strong.

In terms of futures, soda ash prices fluctuated widely during the week. The fundamentals remain strong, but subsequent margins are expected to weaken, further upward drive is blocked, and the market atmosphere will retreat if it does not advance. Superimposed by repeated macro sentiments during the week, the soda ash market fluctuated more widely with the market environment.

Forecast for next week: As companies undergoing maintenance resume production in the later period, soda ash supply is expected to increase; downstream market demand is stable, companies are just in need of replenishment, downstream float glass and photovoltaic glass production capacity is stable, while soda ash prices are high, and the market supply and demand game is dominated. Prices are expected to remain volatile.

2. Comparison of market prices of soda ash in regions

Unit: yuan/ton

3. Soda ash process profit statement

As of May 30 this week, the profit of the combined alkali method was 910 yuan/ton, up 129 yuan/ton from the previous week; the profit of the ammonia-alkali method was 455 yuan/ton, unchanged from the previous week.

4. Equipment maintenance of soda ash enterprises

About 82.50% of the soda ash industry started this week, down 1.55% month-on-month. According to incomplete statistics, the output of soda ash manufacturers this week was about 687,500 tons.

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5. Soda ash manufacturer inventory

The total inventory of Chinese soda ash manufacturers this week was 820,000 tons, compared with around 862,000 tons last week, a month-on-month decrease of 42,000 tons, or 5.12%.

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