Analysis of soda ash market
Today, the price of soda ash in China remains stable. As of now, the price of light soda ash in South China is between 2,400 - 2,450 yuan/ton, and the price of heavy soda ash is between 2,500 - 2,600 yuan/ton; the price of light soda ash in East China is between 2,200 - 2,400 yuan/ton, and the price of heavy soda ash is between 2,350 - 2,500 yuan/ton; as early maintenance enterprises resume production, the supply of soda ash will increase; Downstream demand remains stable, soda plants still have some support orders in hand, and soda ash prices are operating firmly.
Futures dynamics
According to Boduo data, the opening price of SA2409, the main contract for soda ash, on June 4, was 2209 yuan/ton, and finally closed at 2233 yuan/ton, an increase of-1.15% within the day. The intraday high was 2246 yuan/ton, the lowest was 2186 yuan/ton, with a total position of 714349 lots, a month-on-month +10694 lots.
Today, soda ash futures prices bottomed out and rebounded mainly. In the short term, soda ash prices lack upward drive, existing maintenance plans at the supply side are basically implemented, and soda ash losses may recover in June. However, the actual losses in the subsequent maintenance season cannot be determined, and demand growth is also expected. Short-term soda ash prices have been adjusted back with the market environment, and the medium-term trend has not yet reversed. Although the industrial fundamentals show signs of weakening, there is still support for short-term spot prices. In the short term, we can wait and see whether the overall market sentiment can stabilize and the support for the previous lows.
market outlook
The start of the soda ash market fluctuated within a narrow range, and enterprises began to coexist with maintenance and restoration; downstream demand remained basically stable. At the beginning of the month, most downstream enterprises continued to need procurement, and the market had no mood to stock up. Supply and demand in the soda ash market were basically balanced, and prices in some regions may be adjusted. Mainstream prices have temporarily stabilized.
