Soda Ash prices stand firm in the Global market amid stable demand

In April, Soda Ash prices maintained consistent firmness, backed by the strong demand from the primary Soda Ash consuming glass industry in the global market. The glass industry demand is majorly affected by the weak production and logistics, which ultimately resulted in a bearish market for Soda Ash. In Asia, a resurgence of Covid 19 led to poor production activity and port congestion at several container terminals amidst the implementation of strict covid restrictions in China. Meanwhile, the European market has showcased stagnancy since March due to the stable demand from downstream industry.

In the North American region, spot soda ash prices fluctuated in a stable to narrow range with sufficient supply for catering to the regional demand. A marginal drop of 1% is observed in the prices of Soda Ash in the month of April amid ample availability of raw material in the USA and stability in the demand from the glass industry. A marginal decrease of 1.2% in spot prices was observed in the Chinese market as demand from the domestic glass industry witnessed stabilization. Meanwhile, disruption in Chinese shipments has lowered the market for Soda Ash which compelled the manufacturers to reduce the prices in the domestic market to clear their inventories. The Asia Pacific Soda Ash prices remained stable with ample supply in the domestic market and significant offtakes from the Soaps and detergents sector as buyers were apprehensive of a resurgence of Covid 19 in several Asian countries.

As per ChemAnalyst, Soda Ash prices are likely to continue rising as the market activities showcased favorable sentiments by the end of Q1 across the globe. Likewise, the operating rates in Soda Ash plants are also expected to gradually increase in the coming months. No signs of relief in the conflict situation in the European region will lead to high energy prices.