Soda Ash Prices to Surge Globally on the back of Consistent Supply Concerns

Soda Ash prices have been surging since the start of the week due to delays in the supplies of Soda Ash globally. Production in the downstream industries such as textile and glassware factories are facing setbacks due to delays in the shipment of soda ash by the Indian exporters over the past four months in countries like Bangladesh. Additionally, traders have been anxious that the outages in China since the resurgence of covid in the country has resulted in a short supply of Soda Ash in China's domestic market.

Soda Ash is prepared by Solvay process or ammonia soda process. Since the Solvay process holds the primary importance for global industrial production and Russia -Ukraine are substantial Ammonia and fertilizer exporters, the conflict has triggered international markets to be disrupted globally. Supplies remained interrupted since Russia is considered as the major Soda Ash exporter. Indian exporters are delaying the transport of over 50 MT of soda ash. The Indian exporters have been demanding $60 per MT due to lack of ships and increased freight charges. All imports from India, including steel, iron, and chemical substances’ prices have increased due to disruption in production because of a severe crisis in the neighbouring country stemming from the Covid-19 pandemic.

Soda Ash is mostly used as an ingredient in the manufacture of dyes and colouring agents, synthetic detergents, fertilizers, glass, and gum. According to ChemAnalyst, "Soda Ash prices are expected to witness further hike until the supply of the product attains normalcy in China." Additionally, the announcement of another shutdown scheduled in the Soda Ash plant in China with massive manufacturing capacity has exacerbated the concerns over Soda Ash supply in the upcoming quarter. Supplies are expected to remain down until the coolness in the Russian invasion.