Analysis of soda ash market
Today, domestic prices in East China and Central China have dropped within a narrow range. As of now, the price of light soda ash in East China is between 1,900 - 2,150 yuan/ton, and the price of heavy soda ash is between 2,000 - 2,200 yuan/ton; the price of light soda ash in Central China is between 1,800 - 2,000 yuan/ton, and the price of heavy soda ash is between 2,000 - 2,200 yuan/ton; the start of soda plants is still at a high level, and the low price of heavy soda in some regions has been loosened, and there are deficiencies just needed; Recently, orders from soda ash companies have gradually been absorbed, but new orders are still relatively sluggish; the downstream market has a poor mood to get goods, and the soda ash market has maintained a weak adjustment.
Futures dynamics
According to Boduo data, the opening price of SA2409, the main contract for soda ash, on July 17, was 1933 yuan/ton, and finally closed at 1929 yuan/ton, an increase of-0.62% within the day. The intraday high was 1967 yuan/ton, the lowest was 1896 yuan/ton, with a total position of 822908 lots, a month-on-month +8580 lots.
Today, soda ash futures prices were mainly weak and volatile, with relatively violent intraday fluctuations, and once dropped to the 1900-yuan integer mark. The fundamentals of soda ash itself are still weak. While the supply problem remains stable, there may still be pressure on the production and marketing problems in the middle and upper reaches before the next round of downstream replenishment, and there is a lack of practical driving force in the short term. However, important meetings during the week are about to end but policy guidance has not yet been issued that exceeds expectations. Today's market may be short-listed trading expectations. In the short term, soda ash lacks actual driving force or still operates around its own weak logic.
market outlook
The summer maintenance plan is maintained, and the supply side is hovering at a high level; affected by weak downstream demand, the market sentiment is cautious and companies lack the willingness to support prices. It is expected that the domestic soda ash market price may operate weakly and stably in the short term.
