Soda ash industry is in its most difficult period or has passed

Demand Significantly Increases Prices Stabilizes Recovery The soda ash market has stabilized and recovered this year. Soda Ash Industry Association Chairman Tong Lili said in an interview with CCIN reporters this week that in 2010, soda ash production, sales volume and prices will all be higher than in 2009, and the industry’s loss situation will be significantly improved. The overall situation will be better than in 2009.
According to Tong Lili, 2009 was the most difficult year for the soda industry in the past 10 years. The industry's capacity was only 85.75%. The increase and increase in output was the smallest year in recent years. Soda ash exports hit record highs. However, export prices have been declining month by month; the entire industry has suffered losses, and only individual companies have maintained low margins. Until the fourth quarter of last year, sales and prices of soda ash gradually recovered slightly, and monthly production recovered to 1.65 million to 1.7 million tons, which was the same as the high monthly production in 2008. With the encouragement of the Central Government's growth policy measures this year, the domestic economy will quickly recover and develop. The demand for downstream industries will surpass the most difficult in 2009 and will inevitably stimulate the recovery and development of the soda industry.
In 2010, with the stabilization of GDP, the downstream industry improved, sales of automobiles and flat glass went hot, and sent to soda ash, prompting the recovery of soda ash prices. The current price of light alkali in the Northeast China is 1,550 yuan (t price, the same below), and the price of heavy alkali is between 1600 and 1,650 yuan. Li Weifeng, Marketing Director of Jiangsu Huachang Chemical Industry Co., Ltd., told CCIN that the price of the company rose by 100 to 150 yuan in January compared with January, and that the price of light alkali in early March rose by nearly 400 yuan from the end of last year, and the amount of heavy alkali increased. 450 yuan; Lianyungang Soda Plant Sales Director Liu Shou-wei introduced the factory light alkali prices in 1600 yuan, the price of heavy alkali reached 1800 yuan, basically full production; Qingdao Alkali Industry Co., Ltd., director of supply and marketing Lu Su collar It said that as the market price rebounded, the operating rate of the company reached more than 90%, and the operating rate of the production facilities of various production enterprises increased significantly, and the inventory was small.
But at the same time, they reminded the industry that the soda ash industry was affected by the global financial crisis and entered a trough, which was totally different from the downturn of the Asian financial crisis at the end of the last century. In the period from the second half of 1996 to the second half of 1999, the soda ash industry did not have an old factory expansion or a new factory. As a result, after the Asian financial crisis, the market recovered rapidly, quickly reached the bottom and entered a long period of time. Year of rapid development. At present, the capacity of millions of tons of soda ash is under construction. Therefore, after the global financial crisis is eased, the sluggishness of the soda ash industry may continue for several years. The industry still needs to control production capacity and stabilize the market.

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