The Soda Ash Market Strengthens in Asia With Rise in Downstream Inquiries
- 20-Feb-2023 6:02 PM
- Journalist: Li Hua
The Soda Ash prices fluctuated at the highest levels in the APAC region, owing to the elevation in downstream offers and a slight rise in the weekly output. In late February 2023, the Soda Ash inventories were reduced to a narrow range amidst rising operations after the resumption of the plant in the region.
In India, the recovering downstream offtakes supported the Soda Ash market in mid-February 2023. Besides, Soda Ash prices in India fell in the week ending February 17, 2023, as the increase in inventories amidst adequate production activity in the country diminished the supply-demand gap. Additionally, anticipated positive market sentiments in the downstream glass industry, an improvement in the real estate sector, and an expected rise in new orders will lead to inventory replenishment in the Soda Ash market by the market participants, increasing commodity prices in India.
Soda Ash prices increased in the Chinese market at the end of February, backed by tight supplies and a surge in downstream demand. According to the sources, the global economic slowdown and weak export offers have substantially obstructed the international market for the commodity. Demand for Soda Ash is growing at a slow pace following the Lunar New Year holiday, and the Chinese market is moving self-sufficiently toward the end of the month.
As per ChemAnalyst, prices of Soda Ash may further improve in March 2023, owing to improving downstream glass industry demand in the APAC region. In addition, expected fluctuations in upstream energy prices are anticipated to impact the cost of the commodity. Additionally, the domestic market will likely get more positive on supply and demand in March 2023. Moreover, with the energy drive and push in self-reliant India, GHCL Limited announced the addition of a Soda Ash manufacturing unit in Bada village of Mandvi taluka in Kutch (Gujarat) amidst the anticipation of an uplift in the downstream demand in the solar glass segment of India, and the plant is expected to come into operation by 2025.