In August, the Chinese soda ash market continued to decline

September 1st News

I. Price Trends

According to the commodity analysis system, the price of soda ash continued to decline in August. At the beginning of the month, the average market price of light soda ash was 1286 CNY/ton, and by the end of the month, the average market price was around 1210 CNY/ton. The price decreased by 76 CNY/ton during the month, a decrease of 5.91%.

II. Market Analysis

According to the commodity analysis system, the soda ash market trend continued to decline in August. On the supply side, some maintenance facilities resumed operations, increasing the capacity utilization rate of soda ash, and production remained at a high level. In terms of demand, terminal transactions were mediocre, with downstream consumption being slow and low replenishment intentions. Inventory at soda ash companies accumulated, and the fundamental situation of strong supply and weak demand persisted, creating a bearish atmosphere. To promote sales, the price of soda ash continuously decreased.

As of August 29, 2025, the mainstream market price for light soda ash in the East China region is around 1110-1400 CNY/ton, with a decrease of 140 CNY/ton within the month; in the Central China region, the mainstream price for light soda ash is around 1130-1300 CNY/ton, with a decrease of 70 CNY/ton within the month; in the North China region, the mainstream price for light soda ash is around 1200-1300 CNY/ton, with a decrease of 50 CNY/ton within the month.

On the demand side: According to the commodity analysis system, glass prices have shown a weak downward trend this month. The average market price of glass has dropped from 16.05 yuan per square meter to 13.88 yuan per square meter, representing an overall decline of 13.52%. Throughout the month, glass production capacity remained steady, with supply levels largely unchanged. Meanwhile, downstream demand has failed to keep pace, leading to slow sales for manufacturers and a gradual buildup of inventory. As a result, end-user industries remain cautious about entering the market, further weakening manufacturers' confidence, which has prompted continuous price reductions in the glass sector.

Outlook: Recently, the operating rate of soda ash has slightly decreased, and the inventory pressure on enterprises has somewhat eased. However, the overall inventory volume in the market remains high. Downstream buyers are mainly purchasing according to their needs. As the traditional peak season approaches, demand may see some improvement. The market is currently experiencing a supply-demand tug-of-war. It is expected that the price of soda ash in September will be weak and volatile, depending on the follow-up situation from downstream buyers.