Supply increasing soda ash market may have downward pressure in the near term

Since the middle of last week, the atmosphere of the domestic soda ash market has shown signs of loosening, and this week's weakening trend has become increasingly apparent. The market waited for sentiment to spread and the transaction was affected. At present, Jiangsu, Shandong, and central and southwest soda ash markets all experienced slight declines or decline expectations. Zhong Yanwang believes that with the completion of energy-saving and emission reduction missions around the country, the start-up load of soda ash companies will increase, and enterprises in early-stage parking will also drive one after another. The supply of goods in the market will increase, which is a result of the unaffordable support of high-priced markets in which the former futures sources rely on tight supply of supply sources. The most important reason.
On the one hand, Shuanghuan Soda and Jinshan Chemical started to gradually recover, and there are still manufacturers who have plans to drive in the later period. The supply of goods in the market has increased significantly. On the other hand, the price of soda ash in the previous period has continued to climb. Some downstream companies have already been unable to bear the cost pressure and reduce their production, which has led to a reduction in downstream demand. Although the demand for downstream flat glass and other industries remains stable, it is undeniable that the supply and demand situation of the soda ash market has undergone subtle changes.
In addition, it was heard that some soda ash makers held a large factory meeting in Haihua, Shandong Province on November 5. At the meeting, some manufacturers proposed to “limit the production price”. This shows that the mentality of the industry, has already expected the market downward pressure. From a few days ago, the narrow range of market fluctuations may be relatively large in the short term, and it may not be ruled out. It is understood that by the 9th, the mainstream market prices in various regions: light alkali in the Northeast region in 2100-2200 yuan / ton, heavy alkali in the 2200-2300 yuan / ton; light alkali in North China in the 2200-2400 yuan / ton, weight Alkali in 2300-2500 yuan / ton; East China light alkali in 2400-2500 yuan / ton, heavy alkali in 2500-2600 yuan / ton; light alkali in South China 2400-2450 yuan / ton, heavy alkali in 2450-2500 yuan / ton.

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