Global Soda Ash Prices Slump in March 2023 Amidst Ample Stocks and Feeble Demand

The Soda Ash prices were low in the global market during March 2023, owing to slow demand in the end-use industries and ample stock availability. The downstream glass industry mainly purchased on demand amidst softness in the offers from the construction and automotive sector. In March 2023, the global economic slowdown and high-interest rates weighed on the Soda Ash inquiries impacting international discussions. Moreover, the Soda Ash demand continued to slump in Asian countries on subdued offers from the automotive and other competitive downstream sectors this month.

In China, the prices of Soda Ash on a month-on-month basis witnessed stagnancy in March 2023 on the negative side after showing a significant fall in the previous month owing to the slowdown in the downstream operational activities in the face of ample stocks and bearish consumer sentiments in the market amidst an insufficient recovery in the economic growth of the country. On the other side, with a downturn in demand from the downstream Pulp and Paper segment, Soda Ash purchasing enthusiasm was average in March 2023 amongst the Chinese market players. Meanwhile, a rise in seasonal energy consumption restricted energy-intensive businesses like chemical sectors affecting Soda Ash price momentum at the termination of March 2023.

In the USA, the Soda Ash prices saw a downward trajectory in March 2023, owing to the weakening of demand from the downstream glass manufacturing sector and the high level of inventories. The business activity remained at a slow pace towards the end of Q1 2023, driven by the slowed-down operational activities in the downstream sector amidst higher interest rates and modest economic growth. The widening of the demand-supply gap this week has impacted the pricing dynamics of Soda Ash significantly. As per the latest insights, the prices were affected by the delays in cargo movement in the international market and rising volume at US ports in March 2023. Thus, the price of Soda Ash Light was quoted at USD 286/MT at Ex-Works Wyoming (USA) in the fourth week of March 2023.

As per ChemAnalyst, the Soda Ash price dynamics are projected to decline in the APAC market in April 2023, owing to the anticipated sluggish demand from the downstream industry and ample inventory availability. The downstream inquiries are expected to remain weak, which might cap commodity cost hikes attempts in April.