Escalating Energy Values Impacted the September Soda Ash Prices Globally
- 03-Oct-2022 4:35 PM
- Journalist: Bob Duffler
The Global Soda Ash market witnessed an upward trend throughout September 2022 due to high input costs and consistency in the domestic offers from the downstream glass and construction industry. Meanwhile, high inflation and a stronger US dollar have increased the product's profit margins.
In Europe, the prices of Soda Ash continued to increase due to the high energy values and limited availability of inventories in the regional market. Besides, the Soda Ash market has experienced stability in the demand from the Glass production industries during the last week of September 2022. The upcoming winter season in Europe hampered production activities amidst soaring energy prices and supply disruptions. Therefore, high energy values and input cost escalation have triggered the Northward trajectory of the Soda Ash market in the European market. Moreover, the rapid surge in gas and electricity costs amid the hampered Russian supplies led the French group to drop production this month.
Meanwhile, USA Soda Ash costs witnessed a week-on-week increment due to the increasing demand in the Glass manufacturing and the automotive sector during the week ending 30 September 2022. In addition, the planned permanent closure at the primary Chlor Alkali plant, Olin, for diaphragm grade at Texas and Freeport at the end of the year 2022 also led to bullish buying sentiments amongst the local buyers of the USA. Meanwhile, escalation in the energy costs amidst the upcoming winter season has significantly impacted the commodity prices in the US market.
ChemAnalyst predicted that the Soda Ash prices are expected to increase due to an elevation in demand and a hike in the energy prices in Europe. Moreover, improvement in the cost support from the downstream Glass manufacturing segment is expected in the European market, with a rebound in customer confidence in October. Meanwhile, in September, USA Soda Ash prices may continue to increase due to bullish buying sentiments in the domestic market.