[Soda ash]7.2 Soda ash Daily Review: Soda ash market trend remains weak

Analysis of soda ash market

Today, the domestic soda ash market price is stable and weakening. As of now, the price of light soda ash in Northwest China is between 1,600 - 1,700 yuan/ton, and the price of heavy soda ash is between 1,700 - 1,750 yuan/ton; the price of light soda ash in North China is between 1,950 - 2,100 yuan/ton, and the price of heavy soda ash is between 2,150 - 2,250 yuan/ton; This week, some soda plants were repaired, and the market operating rate decreased slightly during the week. The overall market operating rate remained high. Light soda stocks in some regions were under great pressure, and low prices were lowered. Today, the increase in market inquiries was mostly sold at low prices. The sentiment eased, but downstream demand did not rebound significantly. There was resistance to high prices, and the market still maintained a weak operation.

Futures dynamics

According to Boduo data, the opening price of SA2409, the main contract for soda ash, on July 2, was 2120 yuan/ton, and finally closed at 2188 yuan/ton, an increase of 3.45% within the day. The intraday high was 2189 yuan/ton, the lowest was 2119 yuan/ton, with a total position of 750536 lots, a month-on-month +37436 lots.
Today, soda ash futures prices continue to operate in a strong trend. Due to the new maintenance plans and the recent recurrence of supply disturbances from major factories in the soda ash market, market worries have once again been fermented. In the short term, it is necessary to continue to observe how the supply disturbance problem evolves and its impact on the purchasing mentality of the middle and lower reaches. In addition, there are still certain expectations for policy expectations before the important meeting in July, and there may still be some support for soda ash prices before the above uncertain events cannot be falsified. However, whether we can open up upward space still needs to observe the direction of the actual supply and demand relationship.

market outlook

The soda ash market continues to operate weakly,Procurement in the downstream market is still cautious, high-priced transactions are under pressure, and low-priced goods are flowing into the market.The realistic logic of soda ash is still weak, but the recurrence of supply disturbance problems may still lead to positive feedback in the spot market, and the persistence of market sentiment can be observed in the short term.