The operation of the domestic soda ash market this week
Date：
2024-01-24 09:49
This week, the domestic soda ash market has been weak and volatile, with strong prices and improved transactions.
According to data monitoring from Longzhong Information, the overall operating rate of soda ash during the week was 90.07%, an increase of 1.28% compared to the previous week. The production of soda ash was 701200 tons, an increase of 1.44%, and the equipment was running smoothly with an increase in production and operation; During the week, the inventory of soda ash manufacturers was 438100 tons, a month on month increase of+12200 tons, an increase of 2.86%. The burden was removed slightly, but the overall fluctuation was not significant. The inventory concentration was obvious, and some enterprises had high inventory; The number of pending orders for enterprises increased within the week, with nearly 12 days until the end of the month. It is understood that social inventory is not high, with a narrow decline and little fluctuation.
On the supply side, some enterprises have experienced fluctuations in load, resulting in a downward trend in production and operation. It is expected that the production will reach 690000 tons next week, with an operating rate of 89%+. Currently, most companies have pending orders until the end of the month, and their inventory is fluctuating, resulting in a recent boost in shipments. Spot prices are hovering at the bottom, with some companies experiencing a narrow increase or order closure at the bottom.
On the demand side, the demand for caustic soda has eased, spot prices have remained stable, and downstream pre holiday stocking expectations are expected. From the current understanding, the demand for light weight has improved, the activity of low-priced transactions has increased, and the downstream performance of heavy quality soda ash is average, mainly based on demand. Different regions also have differences in inventory. For some light downstream units, the operation of the equipment is generally stable, with high operating performance and little fluctuation in soda ash consumption. The inventory of raw material soda ash is maintained for 7-13 days, with some having high levels. Recent purchases are needed. Fluctuations in spot prices and expectations for the future market of soda ash may have an impact on pre holiday stocking levels, and sentiment is relatively cautious. This week, float glass resumed production of a 1000 ton production line and a 250 ton photovoltaic cold repair line. The downstream float is stable, and it is expected that a 650 ton photovoltaic line will be cold repaired. The current daily melting capacity of float glass is 1731200 tons, and that of photovoltaic is 97300 tons.
In summary, the short-term trend of the soda ash market is fluctuating. (Source: Longzhong Information)
