[Soda ash]9.10 Soda ash Daily Review: Soda ash market is running weakly and stably

Analysis of soda ash market

Today, China's soda ash market prices are temporarily stable. As of now, the price of light soda ash in East China is between 1,500 - 1,850 yuan/ton, and the price of heavy soda ash is between 1,550 - 1,800 yuan/ton; the price of light soda ash in Central China is between 1,400 - 1,700 yuan/ton, and the price of heavy soda ash is between 1,500 - 1,750 yuan/ton. The equipment in the soda ash market is operating steadily and with small movements, and some soda plants have reduced production in a small amount; downstream demand has not yet rebounded significantly, and soda ash manufacturers mainly deliver early orders; some companies are not offering prices for the time being, and transactions are only negotiated. The soda ash market is operating weakly and steadily.

Futures dynamics

According to Boduo data, the opening price of SA2501, the main contract for soda ash, on September 10, was 1398 yuan/ton, and finally closed at 1357 yuan/ton, an increase of-2.58% within the day. The highest intraday session was 1408 yuan/ton, the lowest was 1357 yuan/ton, and the total position was 1295498 lots, a month-on-month increase of 52069 lots.

Today, soda ash futures prices surged high and fell back, hitting a new low again in the intraday session. Affected by the policy and news that the upstream will open a joint production reduction meeting, soda ash prices rose slightly at night. However, in view of the questionable actual situation and the relatively limited impact, prices fell sharply again after sentiment fell. At present, the fundamentals of soda ash itself continue to be strong and weak. The expectation of a decline and weakening on the demand side is temporarily unsolved. If the supply side correspondingly reduces production, it will require greater efforts to achieve certain actual improvement. However, given the relatively high profit levels of various types of manufacturers. Differentiation, unified implementation of production reduction may be subject to consideration, and there is still a risk of accelerated collapse of demand under the premise that there is no improvement in downstream undertaking capabilities. In the follow-up, it will be difficult to reverse the downward trend for the time being, and it will be observed that how the actual situation of upstream behavior develops in the short term can give a certain price elasticity.

market outlook

The units of the soda plant under early maintenance have gradually resumed operation, and the market starts have increased. However, the operating conditions of the downstream glass industry are difficult to improve rapidly, and the demand for soda ash is still insufficient. It is expected that the soda ash market will continue to operate in a weak manner in the short term.