[Soda ash]8.1 Soda ash Daily Review: Soda ash market prices are stable and declining

Analysis of soda ash market

Today, the domestic soda ash market continues to operate weakly. As of now, the price of light soda ash in Northeast China is between 1,950 - 2,050 yuan/ton, and the price of heavy soda ash is between 2,150 - 2,200 yuan/ton; the price of light soda ash in East China is between 1,750 - 2,000 yuan/ton, and the price of heavy soda ash is between 1,900 - 2,100 yuan/ton; recently, the operation of soda plants has fluctuated slightly, and the supply has been high; In order to reduce inventory pressure, some soda ash companies mainly reduce prices and ship. The overall price in the Northeast market has been adjusted to the range of 50-100 yuan/ton; the downstream still maintains low prices and needs to purchase, and the demand performance is average; the market transaction atmosphere is weak. Under the game of supply and demand, the soda ash market is operating in a weak position.

Futures dynamics

According to Boduo data, the opening price of SA2409, the main contract for soda ash, on August 1, was 1778 yuan/ton, and finally closed at 1749 yuan/ton, an increase of-0.40% within the day. The highest intraday session was 1804 yuan/ton, the lowest was 1732 yuan/ton, with a total position of 749770 lots, a month-on-month period of-661 lots.

Today, soda ash futures prices mainly fell due to the high market environment. The overall commodity market sentiment has weakened today. Coupled with the lack of actual upward driving force for soda ash itself, expectations of supply growth and demand collapse have also continued to intensify, and prices have fallen rapidly. In the short term, the logic of the soda ash market is unlikely to change significantly. However, at a time when the main force is moving positions and changing the month, capital behavior may intensify market volatility, and the overall wide-ranging fluctuation pattern is dominated by fluctuations in the market environment.

market outlook

There are still maintenance plans in the future, and there is disturbance in the supply side equipment; there may be further demand for replenishment of the downstream warehouse at the beginning of the month, and the sentiment of purchasing goods may improve. Specific attention should be paid to the market trading performance; it is expected that the soda ash market will operate weakly and steadily in the short term, with narrow adjustments mainly.