[Soda ash]6.24 Soda ash Daily Review: Soda ash prices are weak and declining

Analysis of soda ash market

Today, the domestic soda ash market price is weak and downward. As of now, the price of light soda ash in Southwest China is 2,150 - 2,250 yuan/ton, and the price of heavy soda ash is 2,250 - 2,350 yuan/ton; the price of light soda ash in South China is 2,250 - 2,300 yuan/ton, and the price of heavy soda ash is 2,350 - 2,450 yuan/ton; Recently, the start-up of enterprises in the market has remained stable and the supply of soda ash is sufficient. However, the demand in the downstream market is average. Enterprises just need to purchase, and there is no sign of recovery. The inventory of some manufacturers has increased. Today, the price of new soda ash orders in some areas has been lowered to 50-100 yuan/ton. The soda ash market is weak.

Futures dynamics

According to Boduo data, the opening price of SA2409, the main contract for soda ash, on June 24, was 2103 yuan/ton, and finally closed at 2023 yuan/ton, an increase of-5.33% within the day. The intraday high was 2117 yuan/ton, the lowest was 2019 yuan/ton, with a total position of 720154 lots, a month-on-month +247997 lots.

Today, soda ash futures prices increased significantly and declined. The fundamental weakness of soda ash itself continued. This week, the quotations of major manufacturers were significantly lowered, and the futures price was immediately revised downward. Coupled with poor shipments in the spot market over the weekend, a significant accumulation of inventories, market sentiment continued to weaken, and negative feedback from the spot market continued simultaneously. The rebound after the marginal improvement in fundamentals last week did not appear to be driven. The current weak reality dominates the market. The supply disturbances, demand growth and macro expectations that can be expected in the future have not occurred in the short term. Before that, the market logic may still revolve around its own fundamentals. Weakening operation.

market outlook

The overall start-up of the soda ash market continues to be high. Due to weak demand, corporate prices have been lowered one after another. In the short term, downstream demand has not yet been driven by strong replenishment. Companies are waiting and seeing, and the soda ash market is expected to fluctuate downward.