Brief description of soda ash market

This week domestic soda market movements smooth, the market trading atmosphere, downstream shopping on-demand, procurement cautious, soda ash stable market in north China at present, a line of alkali factory light alkali surrounding the mainstream to price 1800-1900 yuan/ton, heavy alkali around 2200-22500 yuan/ton, the market atmosphere is smooth, the downstream recovery is good, in central China soda market price consolidation, area light alkali mainstream ex-factory price 1550-1650 yuan/ton, heavy alkali 1800-1900 yuan/ton, solid sheet on the low side.Enterprises actively shipping mainly, some enterprises control orders, the market performance is stable, the south China soda market consolidation operation, Guangdong light alkali factory quotation in 1850-1900 yuan/ton, heavy alkali 2100-2200 yuan/ton, firm low, stable market, it is expected that the short line soda market will run smoothly.

Operation rate analysis

This week, the operating rate of soda enterprises fell, the weekly operating rate of around 76.63%, the domestic soda price fell, the main reason is that Shandong Haitian, Shandong Haihai, Tangshan Sanyou and other early month are different degrees of production limit, but the overall demand for soda is still weak, the game between supply and demand intensified, the market price rise is difficult to continue.It is expected that the operating rate of soda will be improved steadily in the later period, the production of soda will be increased gradually, and the sluggish market will continue to intensify.

Inventory analysis

This week the domestic soda ash inventory is still continuing to grow, at the beginning of the month, the total domestic inventory reached 951,600 tons, an increase of 446,400 tons compared with last month, an increase of 88.36%, the inventory destocking is accelerated slow, and the operation rate of enterprises to restore high-speed running state, soda ash industry conference proposed to limit production 20-30%, some enterprises have joined the pace.Single domestic soda market demand is still weak, supply and demand is in a stalemate, it is expected that the recent demand reduction of soda soda market supply and demand contradiction intensifies.

This week, the factory price of soda enterprises is relatively stable, the current soda prices rising trend of strong stability, inventory has fallen to a lower level.Downstream demand slowed down, and holiday manufacturers’ inventory consumption was faster.Later also need to pay attention to the specific situation of spot price and after the festival to the warehouse.Main contract is expected to narrow range shock.

Analysis of market influencing factors

Cost: raw salt market supply and demand increased, prices in some regions rose, the market did not change much, manufacturers supply and demand exist game, the market performance is light, negative in the soda ash market.

Supply side: The soda ash industry conference calls for a 20-30% production limit this month.At present, some enterprises have joined in the pace of production restriction, the downstream early performance is normal, the price is high, the downstream market has resistance psychology, procurement is not active, end users are more cautious to look at the market, the enthusiasm of taking goods is not high.Inventory runs are slow.The upstream and downstream game is becoming more and more obvious. In the short term, the stable operation of the quotation of domestic soda manufacturers is the main task, and the transaction center of heavy alkali market is moving down, and the market support is weakened.

Demand side: the recent domestic float glass price stable price movement, the market trading atmosphere is flat, shahe region production and sales are more optimistic.The demand for heavy alkali of float glass and photovoltaic glass will keep a small increase.It is expected that the later demand for soda ash will be deadlocked.Current soda ash is still at the stage to inventory, soda ash factory

production and marketing gradually improving, some manufacturers inventory increase gradually, the market supply and demand of stalemate, earlier this month, the market mentality is still weak, later still need to pay attention to upstream and downstream market price movements, enterprise production and capacity utilization, market environment, the weather will affect the price movements, such as short-term soda market will continue to steady state, the follow-up to be seen is required as well.

Market outlook forecast

In a word, soda ash inventory high, soda ash market once again into the weak stage, if the operation rate is not effectively controlled, the output will continue to rise, supply and demand balance once again into a stalemate, the downstream market performance is general, more wait-and-see state, the market as a whole to the weak direction.Short – term soda ash market price is expected to run weak.