Soda prices continue to weaken

The domestic soda ash market continued to show a downturn in the recent period. Demand generally showed a weak pattern and prices continued to decline slightly. In January, the domestic average production price of light alkali was 1,750 yuan (t price, the same below), and the average price of heavy alkali was 1,850 yuan, both down 20 yuan from the previous month. From the perspective of domestic soda ash production, due to the fact that the domestic soda ash market generally presents an oversupply situation, the average operating rate of the soda ash production facilities is still at a relatively low level.

The main factors affecting the soda ash market in January are: the domestic market demand continues to be at a low level, giving the soda ash market a greater pressure, especially soda ash. The major downstream industries such as metallurgy, glass, construction, and textile industries continue to slump, affecting the soda ash industry . The domestic chemical fertilizer and pesticide industry is currently in a light storage phase and it has played a positive role in the soda industry. In January, the international crude oil price rose to US$100/barrel, domestic crude oil prices rose to 6,325 yuan, and the prices of water, electricity, coal and other resources and raw materials including raw salt continued to rise, and all had a higher impact on the soda ash market. Great influence.

The continued sluggish international market demand has made domestic soda ash exports still show no sign of improvement, and the growth rate of exports continues to show negative growth. According to the latest statistics, the total amount of soda ash exported in November 2011 was 140,000 tons, up 16.19% month-on-month and up 19.31% year-on-year. In the first 11 months of 2011, it exported 1.39 million tons, down 4.95% from 1.46 million tons in the same period of last year. In November 2011, China's soda ash imports were 1989 tons, which was lower than the previous month.

At present, the world economy is still in a doldrums. The U.S. economy still cannot shake off the difficulties caused by the financial crisis. The debt crisis in Europe continues to expand, the trade environment is deteriorating, and it will continue to have a negative impact on the global economy. It will also affect China’s economic development. Impact on market demand. China's soda ash and soda ash all have met with resistance to the major downstream industries, and the oversupply situation will not be effectively improved in the short term. The first quarter is the off-season market demand for the main downstream industries of soda ash. Therefore, the domestic soda ash market is under pressure to recover. Soda ash prices are expected to remain low in the near term.