SunSirs: The Soda Ash Market Continued to Decline in Early July

Price trend

According to the commodity analysis system of SunSirs, the price of light soda ash fell on July 9th, with a market average price of 1,174 RMB/ton, a decrease of 84 RMB/ton compared to the beginning of the month price of 1,258 RMB/ton, a decrease of 6.68%.

Analysis review 

The soda ash market continued to decline in early July. On the demand side, downstream consumption was slow during the off-season, with low enthusiasm for entering the market and insufficient support for soda ash; On the supply side, although some soda ash plants have been adjusted, the fundamental supply was still sufficient. Soda ash manufacturers had high inventory and strong shipping intentions, but the market supply was strong and demand was weak. The mentality of operators was bearish, and the focus of soda ash transactions continued to shift downwards.

On the demand side: According to the commodity analysis system of SunSirs, the glass market saw a narrow upward trend in early July, with an average market price of 14.03 RMB/square meter on the 9th, an increase of 1.30% from the beginning of the month. Some production lines in the glass market have undergone cold repairs, resulting in a decline in output. Downstream demand followed suit, and the trading atmosphere in the market was still acceptable. The market has slightly reduced inventory, and glass prices have been adjusted upwards.

Market outlook

As of July 9th, the domestic soda ash spot market was sluggish, and enterprise inventory pressure was high. Although the downstream glass market has slightly increased, the intention to replenish was not high, and the demand for soda ash was limited. There was a game between supply and demand. It is expected that the soda ash market will operate weakly and steadily, depending on downstream market demand.

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