Europe soda ash prices slip, production cut

06 March 2009 23:59  [Source: ICIS news]

LONDON (ICIS news)--Soda ash prices have begun to slip and production is being cut across Europe, market players said on Friday.

“A recent flush of soda ash from countries such as China, Russia, and the Ukraine has meant that there’s a glut of soda ash in Europe,” a source said. “That, combined with dropping global demand, means that production is being cut.”

A producer agreed, saying it had heard that capacities had been reduced by around 20% or more in Europe. “Anyone failing to follow suit would be foolish,” it added.

Market sentiment was that prices had begun to slip, and the range was adjusted down by $5/tonne to reflect it this week. Participants said that this was now following the falling trend in both the Middle East and Asia.

Dense soda ash bags were pegged at $325-350/tonne FOB (free on board) NWE (northwest Europe) and light soda ash bags at $325-340 FOB NWE.

In the Black Sea area prices slipped under the $300/tonne mark, with both grades pegged at $295-325/tonne FOB by global chemical market intelligence service ICIS pricing .

A source said that recent pricing policies at major producers were also to blame for the decrease.

“This minor drop is only the beginning, as continuing imports will exert further pressure”, it added.

Demand for soda ash was generally described a depressed, especially in the flat glass sector, where consumption was reported to have fallen by over 20%.

For more on soda ash visit ICIS chemical intelligence
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By: Stuart Moir
+44 20 8652 3214

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