3.31 Soda Ash Daily Review: Individual prices in the soda ash market have been slightly reduced

Soda ash market analysis

Today, some prices in the domestic soda ash market have been slightly lowered. As of now, the price of light soda ash in East China is 1,300-1,500 yuan/ton, and the price of heavy soda ash is 1,500-1,600 yuan/ton; the price of light soda ash in Central China is 1,300-1,500 yuan/ton, and the price of heavy soda ash is 1,450-1,600 yuan/ton. Today, some soda ash plants in Henan Province have reduced their operation, but the overall supply remains high and volatile; affected by the continued poor downstream demand, enterprises have weak purchasing intentions and are cautious about taking goods overall; the soda ash market price has weakened steadily, and the trading atmosphere has continued to be light.

Futures dynamics
According to Boduoduo data: On March 31, the opening price of the main soda ash contract SA2505 was 1,391 yuan/ton, and finally closed at 1,373 yuan/ton, with a daily increase of -2.21%. The intraday high was 1,397 yuan/ton, the low was 1,369 yuan/ton, and the total position was 1,154,525 lots, down 12,539 lots from the previous month.

Today's soda ash futures prices weakened significantly, mainly because after the supply disturbance itself came to an end, the upstream inventory pressure increased again. Although the downstream demand scale still has a certain volume and repair expectations, the actual demand increase before the delivery of the main contract is difficult to form a strong concentrated improvement drive for the short-term market, and the linkage support for soda ash has also weakened after the downstream glass price fell sharply. In the short term, the fundamental weakness of the soda ash market is difficult to change, and it is necessary to guard against the risk of soft pressure before the delivery of the main contract. On the positive side, we can also expect the positive transmission of further improvement in demand in the subsequent terminal market peak season.

Market forecast
Subsequent soda ash maintenance equipment will resume, and soda ash supply will hover at a high level; approaching the Qingming Festival, the downstream wait-and-see sentiment is strong; it is expected that the soda ash market will be narrowly consolidated in the short term, and it is still necessary to pay attention to the subsequent equipment dynamics and changes in the downstream procurement rhythm.