SunSirs: Soda Ash Market Was Weak (August 11-18)

Price trend

According to the commodity analysis system of SunSirs, the price trend of soda ash continued to decline last week. As of August 18, the average market price of soda ash was 1,224 RMB/ton, down 28 RMB/ton from the soda ash price of 1,252 RMB/ton on August 11, a drop of 2.24%.

Analysis review

The soda ash market has been weak recently. With fewer companies undergoing maintenance on the supply side, soda ash production has increased, with manufacturers primarily actively shipping. Downstream demand has been mediocre, and due to the continued weakness in glass prices, the market has been less enthusiastic about soda ash purchases, leading to accumulated inventories at soda ash manufacturers. The market was clearly showing a strong supply and weak demand, and soda ash prices continued to decline. On August 18, the price of light soda ash in East China was reduced by 10 RMB/ton, to a range of 1,130-1,400 RMB/ton; in Central China, the price remained at 1,140-1,300 RMB/ton.

According to the SunSirs commodity analysis system, downstream glass prices continued to decline. From August 11 to 18, glass prices dropped from 15.05 RMB/square meter to 14.28 RMB/square meter, a 5.12% decrease. Glass market production capacity was operating steadily, inventory continued to increase, downstream demand was generally weak, glass inventory reduction was slow, and companies were struggling with shipments, resulting in a weak downward trend in glass prices.

Market outlook

As of August 18, the price trend of soda ash was downward, and the industry players were bearish. In terms of inventory, manufacturers had limited shipments and accumulated inventory. The downstream market was weak, and there was insufficient support for soda ash. It is expected that the soda ash market will be mainly weak in the later period, and specific attention will be paid to the follow-up situation of the downstream.

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