Soda ash prices are mixed, manufacturers 'inventories show a downward trend (6.1 Weekly Review of Soda Ash)
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June 2, 2023, 5:04 PM 1. Analysis of China's soda ash market
The decline in China's soda ash market has slowed down this week. As of now, the mainstream ex-factory price of light soda in China this week is 1,750 - 2,050 yuan/ton, and the mainstream terminal price of heavy soda in China is 1,900 - 2,300 yuan/ton; soda ash market prices are mixed. Currently, there are not many maintenance companies in the industry, and the market starts remain high; due to the continuous decline in soda ash prices, the industry's profit margin has shrunk significantly; Due to the rise in soda ash futures, shipments in the spot market have improved, and the pressure on manufacturers 'inventory has eased. Some companies have raised the prices of new orders by 50 yuan/ton, and some companies have closed orders and not quoted prices. Downstream demand for light soda remains weak, while demand for heavy soda has improved. Due to the recent fluctuations in soda ash prices, procurement in the downstream market has been cautious.
Forecast for next week: New orders in the market will improve this week. Some manufacturers will place new single-row orders until the end of the month. Manufacturers are obviously willing to bid; market procurement remains cautious, and manufacturers are generally willing to hoard goods. It is expected that soda ash prices will operate stably in the short term.
2. Comparison of market prices of soda ash in regions
Unit: yuan/ton
|
areas |
specifications |
on May 25 |
June 1 |
rise and fall |
previous month |
|
Northeast China |
light soda ash |
2250 |
2150 |
-100 |
-6.25% |
|
heavy sodium carbonate |
2400 |
2200 |
-200 |
-4.00% |
|
|
in North China |
light soda ash |
2100 |
2050 |
-50 |
-8.70% |
|
heavy sodium carbonate |
2100 |
2050 |
-50 |
-8.70% |
|
|
East China |
light soda ash |
2150 |
1950 |
-200 |
-4.44% |
|
heavy sodium carbonate |
2050 |
2100 |
50 |
-8.89% |
|
|
central China |
light soda ash |
1750 |
1750 |
0 |
-16.67% |
|
heavy sodium carbonate |
2000 |
2050 |
50 |
-11.11% |
|
|
South China |
light soda ash |
2100 |
2100 |
0 |
-8.70% |
|
heavy sodium carbonate |
2200 |
2150 |
-50 |
-10.20% |
|
|
southwestern region |
light soda ash |
2050 |
2050 |
0 |
-8.89% |
|
heavy sodium carbonate |
2150 |
2100 |
-50 |
-8.51% |
|
|
northwestern region |
light soda ash |
1700 |
1700 |
0 |
-15.00% |
|
heavy sodium carbonate |
1750 |
1750 |
0 |
-10.26% |
3. Soda ash process profit statement
As of May 25 this week, the profit of the combined alkali method was 688 yuan/ton, down 262 yuan/ton from the previous week; the profit of the ammonia-alkali method was 500 yuan/ton, down 320 yuan/ton from the previous week.
|
production process |
on May 25 |
June 1 |
Weekly ups and downs |
rise and fall |
|
combined alkali method |
688 |
600 |
-88 |
-12.79% |
|
ammonia-soda process |
500 |
483 |
-17 |
-3.40% |
4. Equipment maintenance of soda ash enterprises
This week, the soda ash industry started at 90.0%, up 2.0% month-on-month last week. Among them, ammonia and alkali manufacturers start operating on average 94%, combined alkali manufacturers start operating on average 86%, and natural alkali plants start operating on average 100%. According to incomplete statistics, the output of soda ash manufacturers this week is about 600,000 tons.
|
Equipment maintenance list of soda ash enterprises on June 1, 2023 |
|||
|
process |
enterprise name |
production capacity |
device condition |
|
combined alkali method |
Fujian Yaolong |
40 |
Maintenance will start from September 11, 2022, and recovery time will be determined |
|
Xuzhou Fengcheng |
60 |
It will be stopped for maintenance on May 6 and is expected to resume at the end of the month |
|
|
Xiangyu Yanhua |
80 |
It was stopped for maintenance on May 9, and the device is being restored this week |
|
|
Jiangsu Shilian |
100 |
It will be stopped for maintenance on May 10, and the maintenance is expected to take about 20 days |
|
|
Gansu Jinchang |
20 |
At present, the company's equipment is under construction |
|
|
chlor-alkali process |
Shandong haihua |
300 |
At present, the company's equipment is under construction |
|
salt Lake magnesium industry |
120 |
At present, the company's equipment is under construction |
|
5. Soda ash manufacturer inventory
The total inventory of Chinese soda ash manufacturers this week was 518,000 tons, compared with 542,000 tons last week, a month-on-month decrease of 24,000 tons, or 4.43%.
