SunSirs: Downstream Demand Was Weak, and the Soda Ash Market Continued to Be Weak

Price trend

According to the commodity analysis system of SunSirs, the price of light soda ash remained stable on September 8, with the average market price at 1,186 RMB/ton, down 24 RMB/ton from the price of 1,210 RMB/ton at the beginning of the month, a decrease of 1.98% from the beginning of the month.

Analysis review

Since September, the soda ash market has remained weak. On the demand side, downstream follow-up has been modest, with low enthusiasm for market entry and limited purchases at low prices based on just-in-time needs. On the supply side, soda ash capacity utilization has improved overall, leading to increased market inventory. To boost shipments, some companies have shifted their focus downward, maintaining a market-wide trend of strong supply and weak demand.

On the demand side: According to the SunSirs commodity analysis system, glass prices have fluctuated narrowly since September, with the average market price at 14.00 RMB/square meter as of the 8th, a 0.86% increase from the beginning of the month. Glass production lines were operating stably, with small-scale follow-up purchases by end users. The market trading atmosphere was positive, with relatively stable supply and demand. Some companies were experiencing strong shipments, leading to a slight increase in glass prices.

Market outlook

As of September 8, the domestic soda ash spot market was mainly weak and stable, with high market inventory and insufficient confidence among industry players. The downstream glass market followed up just on demand and provided limited support for soda ash. There was a game between supply and demand in the market. It is expected that the soda ash market will consolidate weakly in the later period, depending on the downstream market demand.

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