Analysis of soda ash market
Today, China's soda ash market continues to operate weakly and steadily. As of now, the price of light soda ash in East China is 1,400 - 1,600 yuan/ton, and the price of heavy soda ash is 1,500 - 1,600 yuan/ton; the price of light soda ash in Northeast China is 1,700 - 1,850 yuan/ton, and the price of heavy soda ash is 1,700 - 1,850 yuan/ton. Recently, some companies have successively cut production. Although some have increased their operations, the overall supply of soda ash in the spot market is sufficient. In addition, some companies with great inventory pressure have lowered prices and promoted quantities. The overall market operation is average; downstream procurement has not improved at the end of the month, and the soda ash market has maintained stability.
Futures dynamics
According to Boduo data, the opening price of SA2501, the main contract for soda ash, on October 28, was 1500 yuan/ton, and finally closed at 1560 yuan/ton, an increase of 1.56% within the day. The highest intraday session was 1584 yuan/ton, the lowest was 1475 yuan/ton, with a total position of 1242357 lots, a month-on-month period of-23232 lots.
Today, soda ash futures prices rebounded mainly at a low level. Last Friday, due to the impact of a large factory's announcement of full production, the price opened sharply lower, but the impact was relatively short-lived. Immediately after, the market traded policy expectations again and downstream profits were repaired, and prices rebounded in shock. Overall, soda ash itself is relatively weak, the logic of increasing supply and reducing demand has not yet been improved, and there is no actual upward drive. However, short-term policy expectations and the situational recovery driven by downstream price repairs still cannot be falsified. In the short term, the above two major benefits are expected to remain dominant before being falsified or to follow market environment fluctuations.
market outlook
In the future, some soda ash manufacturers plan to reduce production, and market supply may tighten slightly; however, downstream purchasing sentiment remains cautious, focusing on low prices and on-demand. It is expected that the weak pattern of the soda ash market will continue in the short term.
