US soda ash hits the Chinese market

Drying equipment Since the beginning of this year, the soda ash in the United States has continued to grow, making the domestic soda industry even worse. According to statistics from China Customs, in January this year, the United States exported 52,500 tons of soda ash to China, with an average price of US$140 per ton (CFR, China). In February, there were also US sources of goods arriving in Hong Kong, and the number was about 30,000 tons. discharge. In the first two months of this year alone, the total amount of soda ash in the United States has reached more than 80,000 tons. Last year, China imported only 30,000 tons of soda ash from the United States.

According to report, due to the increase in the production of soda ash in the United States and the slow growth in demand from local and major export markets in Europe, the demand for eased sales pressure through exports to China and the entire Asian market has increased. According to the statistics of the US Geological Survey and U.S. Customs, the total soda ash production in the United States totaled 11.2 million tons in 2012, an increase of nearly 5% from 2011; the total export volume was 6.1 million tons, and the export dependence was nearly 55%, compared with 51% in 2011. There is a clear increase. Since 2013, the production of trona in the United States has remained at a high level in 2012. However, the demand for soda ash in the United States and Europe is still weak, especially for some glass production lines. Once the demand for soda ash in the European and American markets began to shrink markedly, the US side will have more reason to maintain its strategy for 2012—to increase its exports to China and even to the entire Asian market, thereby relieving the pressure on European and American markets.

In response, Wang Xiling, president of the China Soda Industry Association, said that the increase in the amount of alkali imports in the United States has caused an impact on domestic prices of heavy alkalis, which in turn will drive down the price of light alkali, which is already in a state of overcapacity and competition. The domestic soda ash companies suffered greater economic losses. According to his predictions, the US base that entered the domestic market in the first half of 2013 is estimated to reach 150,000 tons, and it is expected that the total amount of US bases imported throughout the year will reach 200,000 to 300,000 tons.

According to report, in 2012, the domestic soda ash production capacity reached 28.70 million tons, and the total output was 24.01 million tons, an increase of 7.4% year-on-year. In addition, 3.2 million tons of soda ash will be put into production this year. Therefore, the amount of alkaloids in the United States is not enough to pose a threat to the domestic market. However, the obvious price advantage of trona in the United States can indeed attract some domestic customers. At present, the average transaction price of domestic heavy alkali is 1,400 yuan/ton, while the price of imported natural trona to domestic end-users in the United States is only 1,300 yuan/ton, which has aroused the interest of many downstream customers. At present, most imported American alkaloids are large domestic glass companies.

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