China's Soda Ash Market Remains Stable

November 28th, according to reports

I. Price Trends

According to the commodity analysis system, on November 28, the average market price of light soda ash in China was 1,224 CNY/ton, which is the same as the price of 1,224 CNY/ton on November 21. The price of soda ash remained stable throughout the week.

II. Market Analysis

This week, the soda ash market in China operated steadily. Downstream production decreased, leading to a decline in demand for soda ash. Market transactions followed the rigid demand, and some enterprises reduced their production or underwent maintenance, resulting in a decline in the operating rate of soda ash. This situation provided some support to the market sentiment. However, the fundamental supply-demand imbalance, characterized by strong supply and weak demand, has not yet improved. Industry players remain cautious, and soda ash prices are holding firm.

On the demand side: According to the commodity analysis system, this week glass prices first fell and then rose. As of November 28, the average market price stood at 13.68 yuan per square meter, representing a 1.48% increase compared to the price of 13.48 CNY per ton on November 21. This week, the glass industry’s operating rate declined slightly, while downstream buyers became more active, leading to better sales performance for enterprises. Consequently, social inventories of glass have decreased, and glass prices have experienced a narrow-range upward trend.

Future market forecast: Currently, the Chinese soda ash spot market is mainly stabilizing. The supply side is expected to see a recovery in production capacity and an increase in operating rates. The downstream market has stopped falling and is warming up, which may lead to an increase in soda ash purchases. It is expected that the soda ash market will remain in a stalemate and consolidation phase. Specific attention should be paid to the market's shipping conditions.