End-Use Demand Influenced the Price Movement of Soda Ash
- 19-May-2022 8:42 AM
- Journalist: Nicholas Seifield
Shandong, China: Global Soda ash price movement has been going upward in several countries, including the USA and Germany, in the mid-week of May, backed by the strong demand in downstream glass and disinfectant segments. Moreover, in China, port congestion at several container terminals has delayed the export activity in the country, leading to high export demand for Soda Ash in China.
According to the analysis conducted by ChemAnalyst, Soda Ash prices surged in May in Asia pacific region due to appreciable demand from the primary Soda Ash consuming glass industry amid the ongoing pandemic COVID 19 and implemented lockdown, with bullish buying interest amongst the buyers. Chinese port congestion also results in delays in the export activity from China conclusively manufacturers indulge in attaining high offtakes in the domestic market with appreciable profit margins for Soda ash.
Strong demand from end-use consumers and uncertainties because of the escalated tension between Russia and Ukraine caused the supply chain disruption for Soda ash in the European market in the first week of May. Meanwhile, High logistics and production costs made the traders indulge in decent profit margins by slightly increasing the Soda ash prices in European market.
In the USA, market sentiments for the glass industry contributed to an upward price movement for Soda ash in the US domestic market due to high consumption in the construction sector.
As per ChemAnayst, “The Soda ash prices are anticipated to show an increase in June in Europe with an increment in the demand from downstream glass industry and detergent segments. Soda ash prices are expected to increase in China due to further firmness in demand from the end-user cleaning and glass industries. Manufacturing activities are possibly to enhance with the relaxation in the COVID 19 cases in the regional market of China”.