Analysis of soda ash market
Today, the price of light soda in some areas of China's soda ash market has dropped slightly. As of now, the price of light soda ash in East China is between 2,150 - 2,400 yuan/ton, and the price of heavy soda ash is between 2,350 - 2,500 yuan/ton; the price of light soda ash in Central China is between 2,100 - 2,300 yuan/ton, and the price of heavy soda ash is between 2,300 - 2,500 yuan/ton; the start of soda plants has remained high, and individual companies have recently stopped installations, and soda ash supply expectations have decreased slightly; Recently, soda ash prices have stabilized more, but market purchasing sentiment is not good. Today, the low price of light soda in some regions has been lowered by 50 yuan/ton. At present, supply and demand in the soda ash market are basically balanced. There is no inventory pressure in soda factories, and prices are expected to continue to maintain stability.
Futures dynamics
According to Boduo data, the opening price of SA2409, the main contract for soda ash, on June 5, was 2218 yuan/ton, and finally closed at 2195 yuan/ton, an increase of-1.08% within the day. The intraday high was 2236 yuan/ton, the lowest was 2175 yuan/ton, with a total position of 706458 lots, a month-on-month period of-7891 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 soda ash market started to fluctuate within a narrow range, and the overall supply remained high; downstream demand remained basically stable, but companies were cautious in purchasing sentiments and maintained more demand. Prices in individual regions may be adjusted, and mainstream prices have temporarily stabilized.
