Exports drive US soda ash operating rates, prices

18 October 2007 22:31  [Source: ICIS news]

HOUSTON (ICIS news)--US soda ash producers are running at full rates to keep up with export demand, a seller said on Thursday.

“We estimate the industry operating rate is around 97.6%,” a producer said.

The domestic market has declined due to the sluggish US housing market, but exports remain strong, the producer added.

The US Geological Survey estimates that nearly 50% of the soda ash produced in the US is shipped to Asia and Europe.  

“US material is typically priced lower than cargoes from the rest of the world due to the availability of soda ash in the natural state in the US,” a buyer said.  

In addition, it is the export demand that is driving up soda ash prices in the US, a buyer said.

Exporter ANSAC raised its spot price in October for the second time in as many months and is now selling limited parcels at these rates, a trader said.

In addition, market participants said it is now contract season in the US, and the majority of sellers have nominated hikes. Solvay, OCI, FMC and General Chemical have all announced a $15/short ton price hike for 2008 negotiations.

The contract price for 2007 was settled at $130-170/short ton ($143-187/tonne) FOB (free on board) Wyoming, according to global chemical market intelligence service ICIS pricing.

Since 2004, there have been a total of $115/short ton of price increases announced, including the ones for 2007, a producer said.

US soda ash sellers include Solvay, FMC, IMC, General Chemical and Searles Valley Minerals.

By: Heather McGuire Doyle
+1 713 525 2653

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