SunSirs: The Recent Soda Ash Market Was Weakly Consolidating

Price trend

According to the commodity analysis system of SunSirs, the price trend of soda ash has declined slightly recently. As of August 25, the average market price of soda ash was 1,220 RMB/ton, which was 4 RMB/ton lower than the soda ash price of 1,224 RMB/ton on August 19, a decrease of 0.33%.

Analysis review

The soda ash market has been weak and consolidating recently. Supply-side operating rates have fluctuated narrowly, with soda ash production increasing slightly, and manufacturers maintaining active shipments. On the demand side, downstream buyers were less enthusiastic, the glass market was relatively stable, and companies had limited demand for replenishment. Some soda ash suppliers lowered their transaction prices to maintain shipments. The market's strong supply and weak demand situation remained unchanged, and soda ash prices were trending weakly. On August 25th, the price of light soda ash in East China remained between 1,130 and 1,400 RMB/ton; in Central China, the price dropped by 10 RMB/ton to a range of 1,130 to 1,300 RMB/ton.

According to the SunSirs commodity analysis system, downstream glass prices were weakening. From August 19th to 25th, glass prices dropped from 14.28 RMB/square meter to 13.83 RMB/square meter, a 3.15% decrease. While production lines were operating stably, companies were experiencing some inventory accumulation, and downstream orders were insufficiently fulfilled. Companies were primarily shipping on demand, resulting in limited market transactions and a weak downward trend in glass prices.

Market outlook

As of August 25, the price trend of soda ash was downward, the mentality of the industry was weak, the downstream was not willing to stock up, and people enter the market to purchase based on their needs. The inventory of soda ash companies was accumulating, and the fundamental supply exceeded demand. It is expected that the soda ash market will consolidate weakly in the later period, and special attention should be paid to the follow-up situation of the downstream.

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