The Recovery of the Construction Industry Sustains Profitability in the Soda Ash Market

Soda Ash prices are likely to increase in November 2023 in the European and US markets with a positive outlook of downstream demand from the automotive and construction sectors. Meanwhile, tightening production rates amidst an escalation in electricity costs also imposed northward cost pressure on the Soda Ash market players at the termination of October 2023. However, the Asian Soda Ash prices were still on hold amidst the high supplied market.

In the USA, the Soda Ash price trend is expected to be resilient in the coming weeks of November 2023 after following a downturn in the second half of October 2023. This price alteration is likely to be prompted by the rise in seasonal consumption and supply shortages in the American region. The downstream automotive glass industry for the Soda Ash industry continues a steady rebound in the line of tight availability of stocks stemming the rise in the new regional orders with the end of the UAW automakers strike.

Despite high-interest rates in Europe, Soda Ash prices witnessed an upward trend on account of improving downstream orders from the automotive and building sectors. The European Soda Ash market has been in a phase of recovery driven by increased construction and infrastructure development activities in October 2023. As per the latest insights, government and private investors have been contributing support to the construction projects by allocating funds. Moreover, the Soda Ash prices in November 2023 are also anticipated to elevate with high upstream energy costs and a positive regional demand outlook.

Unlikely Europe and the USA, the Asian Soda Ash price trend anticipated that the fourth quarter would witness a concentrated release of Soda Ash capacity. The surge in supply is expected to outpace the growth in demand, marking a shift from a tight market to an oversupplied Asian market. This change in supply dynamics is conclusively anticipated to exert significant downward pressure on Soda Ash prices. Moreover, in October 2023, the overall inventory of Soda Ash manufacturers has risen amidst slowed downstream demand in the region. Additionally, the arrival of alkali goods imports at ports from September to October has gradually increased the domestic supply pressure on the Soda Ash market players in October 2023.

As per ChemAnalyst, Soda Ash prices will gain a positive demand outlook in the coming weeks of November 2023 globally. However, Asian Soda Ash prices are likely to be influenced by the highly supplied market, and the increase in the stock levels may overshadow the regional demand in the downstream sectors for the product in November for a short term.