Analysis of soda ash market
Today, the market price of soda ash in China continues to be stable and weak. As of now, the price of light soda ash in Northeast China is between 2,200 - 2,350 yuan/ton, and the price of heavy soda ash is between 2,400 - 2,500 yuan/ton; the price of light soda ash in East China is between 1,950 - 2,250 yuan/ton, and the price of heavy soda ash is between 2,200 - 2,500 yuan/ton; Recently, a soda factory in Henan has stopped production, and supply may decrease this week; Soda plants still mainly deliver orders on hand, while downstream companies maintain just need to purchase and have a strong wait-and-see attitude.
Futures dynamics
According to Boduo data, the opening price of SA2409, the main contract for soda ash, on June 19, was 2071 yuan/ton, and finally closed at 2075 yuan/ton, an increase of-1.84% within the day. The highest intraday session was 2089 yuan/ton, the lowest was 2056 yuan/ton, with a total position of 726317 lots, a month-on-month period of-1471 lots.
Today, soda ash futures prices fluctuated mainly within a narrow range. Recently, the supply side of soda ash itself has been largely restored, and inventories have continued to grow. The phenomenon of rushing in the middle reaches of the spot market has intensified. Coupled with the fact that imported goods in the early stage are about to arrive in Hong Kong one after another, negative feedback resonance in the current market continues. However, subsequent supply-side maintenance plans still exist, and the actual losses during the maintenance season cannot be determined under the disturbance of high temperature factors. There is still some support for subsequent prices when downstream demand is stable. At present, the overall market sentiment is weak, but the existing negative factors are basically trading well. After prices break below the flat range, the downward trend has slowed down. We can wait and see whether there are signs of stabilization in the short term.
market outlook
The overall start of the soda ash market continues to be high. Some companies temporarily stop their installations; market demand is weak and transactions are relatively sluggish. Supply and demand of soda ash are gradually unbalanced. The prices of new orders of some companies are gradually adjusted, and the soda ash market is stabilizing and weakening.
