Analysis of soda ash market
Today, prices in individual regions in China have been adjusted within a narrow range. As of now, the price of light soda ash in South China is between 2,050 - 2,100 yuan/ton, and the price of heavy soda ash is between 2,150 - 2,250 yuan/ton; the price of light soda ash in Central China is between 1,750 - 1,900 yuan/ton, and the price of heavy soda ash is between 1,950 - 2,100 yuan/ton; some manufacturers have had equipment maintenance and reduced production slightly, but the overall impact is not significant; Transactions in the Central China market were light, regional prices were falling one after another, and overall inventories were showing a slight increase; downstream companies were generally enthusiastic about purchasing, mostly low-cost and just-needed, and the soda ash market was operating weakly and steadily.
Futures dynamics
According to Boduo data, the opening price of SA2409, the main contract for soda ash, on July 23, was 1888 yuan/ton, and finally closed at 1854 yuan/ton, an increase of-3.39% within the day. The intraday high was 1897 yuan/ton, the lowest was 1853 yuan/ton, with a total position of 824123 lots, a month-on-month +175 lots.
Today, soda ash futures prices continue to operate in a weak position. The domestic financial market was greatly frustrated by the news that short-term large-scale stimulus policies were falsified. The fundamental weakness of soda ash itself continues, and supply pressure and demand containment jointly suppress soda ash prices. If there are no concentrated large-scale disturbance events and preconditions for the recovery of downstream industries 'capacity, the main logic of soda ash's medium and long-term weakness will remain unchanged, and the valuation may still gradually move down over time.
market outlook
The overall supply in the market is still relatively sufficient, but the demand in the downstream market is weak, the willingness to purchase is not high, and the orders issued by companies have dropped. Specifically, we still need to pay attention to the replenishment situation in the middle and lower reaches of the month. It is expected that the soda ash market may operate slowly and steadily in the short term.
