Soda ash market tight price rise in the short term market or good operation

June 12, 2024, 9:21 AM

Boododo

2724

Guide

Highlights at a glance

This week, domestic soda ash prices rose steadily, with light ash priced at 1,850–2,100 yuan/ton and heavy ash at 2,050–2,200 yuan/ton. Tight supply due to plant maintenance and low operating rates supported the firm market trend. Inventory dropped to 325,000 tons, down 13.79% from last week, while demand improved slightly with new photovoltaic and float glass production lines starting up. The industry’s overall开工 rate remained around 82%, unchanged from last week, with ammonia-soda plants at 83%, combined-soda at 80%, and trona-based producers at full capacity. Profit analysis shows the combined-soda method earned 687 yuan/ton (down 43 yuan), while the ammonia-soda method saw a slight increase to 483.2 yuan/ton. Looking ahead, ongoing maintenance at Shandong Haihua and Henan Jinshan plants will keep supply constrained. With healthy order books and improving downstream demand, market sentiment remains positive in the short term.

1. Domestic soda ash market analysis

This week, the domestic soda ash market price has risen steadily. As of now, the mainstream ex-factory price of domestic light ash this week is 1,850-2,100 yuan/ton, and the mainstream domestic heavy ash delivery terminal price is 2,050-2,200 yuan/ton; some manufacturers in the soda ash market have equipment maintenance, and the supply of some goods in the market is tight; / ton; in addition to the recent increase in the price of soda ash futures, the market atmosphere is good.

Forecast for next week: Next week, Haihua in Shandong, Jinshan in Henan and other areas are expected to start construction, and there will be enterprise equipment maintenance in the market again. The overall operating rate of the market has not changed much and remains low, and manufacturers have more orders in hand, and the market inventory continues to be low. Recently, some production lines of photovoltaic glass and float glass have been ignited, and the rigid demand for heavy alkali continues to improve. In the short term, market participants’ pessimism about the soda ash industry has improved; .

2. Market price comparison of soda ash in different regions

3. Profit statement of soda ash process

As of July 20 this week, the profit of combined soda method was 687 yuan/ton, a decrease of 43 yuan/ton from last week; the profit of ammonia-soda method was 483.2 yuan/ton, an increase of 3.6 yuan/ton from last week.

4. Maintenance of equipment in soda ash enterprises

This week, the soda ash industry started at 82%, which was basically the same as last week. Among them, ammonia soda manufacturers started at 83% on average, combined soda manufacturers at 80% on average, and trona factories at 100% on average. According to incomplete statistics, the output of soda ash manufacturers this week was around 550,000 tons.

5. Inventory of soda ash manufacturers

This week, the total inventory of domestic soda ash manufacturers was 325,000 tons, compared with 377,000 tons last week, a month-on-month decrease of 52,000 tons, or 13.79%.