4.22 Soda Ash Daily Review: Soda Ash Market Consolidated in Weakness, Local Prices Slightly Declined

Soda ash market analysis

Today, the domestic soda ash market maintained a weak consolidation, and local prices fell slightly. As of now, the price of light soda ash in North China is 1400-1550 yuan/ton, and the price of heavy soda ash is 1480-1550 yuan/ton; the price of light soda ash in Central China is 1245-1380 yuan/ton, and the price of heavy soda ash is 1300-1450 yuan/ton.

Today, the domestic soda ash market as a whole showed a loose supply and demand pattern, the industry operating rate remained high, and the supply of goods was sufficient, but affected by the weak terminal demand, the soda ash market transaction performance was light, and some manufacturers slightly lowered their quotations to stimulate shipments, and the market was cautious.

Futures dynamics

According to Boduoduo data: On April 22, the opening price of the main soda ash contract SA2509 was 1340 yuan/ton, and finally closed at 1315 yuan/ton, with a daily increase of -1.42%. The intraday high was 1,343 yuan/ton, the low was 1,310 yuan/ton, and the total position was 1,068,990 lots, up 70,912 lots from the previous month.

Today, the price of soda ash futures fluctuated in a narrow range and plunged significantly in the afternoon. On the one hand, it may be due to the decline in overall market sentiment, and on the other hand, it may be due to the downward support of the market valuation by the news of the manufacturer's price reduction, and the market rumored that the demand scale of downstream photovoltaic glass was expected to tighten. In the short term, the logic of strong supply and weak demand of soda ash itself has not seen obvious signs of improvement. There is a risk of soft forced liquidation in the near-month contract, and under the dual pressure of weak reality and weak expectations, the funds of the far month gradually killed the market profit. However, in the short term, it is worth waiting to see whether the downstream May Day holiday stocking and macroeconomic policies at the end of the month can provide a rebound opportunity for emotional resonance.

Market outlook

In the short term, the current soda ash market is well supplied, but the demand follow-up is limited. Some manufacturers flexibly adjust prices to promote transactions. In the absence of obvious improvement in the supply and demand fundamentals, the market may continue to consolidate in a narrow range. In the future, attention should be paid to the implementation of the May maintenance and changes in downstream demand.