Soda Ash Methodology

Soda ash (sodium carbonate) is predominantly produced by one of two major routes.  The longest established method is the synthetic chemical process known as the Solvay ammonia-soda process. The second method is by the treatment of naturally mined trona ores. Soda ash is mainly used in the production of glass (flat, container, fibre etc), which accounts for around half of global consumption. Other significant applications are in the soaps & detergents and chemical industries. Smaller application sectors include the pulp & paper industry, water treatment and flue gas desulphurisation. Soda ash is both non combustible and non toxic.Europe traditionally produces soda ash synthetically while Turkey mines most of its soda ash. As a result, European soda ash tends to be more expensive because of the higher costs involved in its production. 

ICIS pricing quotes soda ash in a global and Asian report.

Frequency:

Published weekly on Fridays and Wednesdays for the Asian report.

Soda Ash (Global report)

Weekly Price Assessments:

Soda Ash Dense Bagged

• FOB NWE (USD/MT & conversion to US CTS/LB)
• FOB BL SEA (USD/MT & conversion to US CTS/LB)

Soda Ash Light Bagged

• FOB NWE (USD/MT & conversion to US CTS/LB)
• FOB BL SEA (USD/MT & conversion to US CTS/LB)

Soda Ash Dense US Gulf

• FOB Bulk (USD/ST & conversion to US CTS/LB)

Asia Pacific report

Weekly Price Assessments:

Soda Ash Dense Bulk

• FOB China Main Port (USD/MT & conversion to US CTS/LB)CFR NEA – covers Japan, Korea and Taiwan (USD/MT & conversion to US CTS/LB)
• CFR SEA – covers the Philippines, Thailand, Malaysia, Indonesia and Vietnam (USD/MT & conversion to US CTS/LB)

Soda Ash Light Bulk

• FOB China Main Port (USD/MT & conversion to US CTS/LB)

General Information:

Assessment window:

Price assessments are based on information supplied by market participants through the week up to close of business on Wednesdays for the Asian report and Fridays at 1700 hours in London, Singapore and Houston.

Specification:

Sodium Carbonate, Na2CO3, 99.2% min; Sodium Oxide, Na2O, 58.1% min; Sodium Sulphate, Na2SO4, 0.15% max; Sodium Chloride, NaCl, 0.08% max; Water Insolubles, 0.05% max; Sieving, on 20 mesh – 0.4% max, on 30 mesh 5.0% max, on 100 mesh – 85.0% min, through 200 mesh – 2.0% max; Dense soda ash – 900-1,000 kg/m3; Light soda ash – 480-600 kg/m3

Timing:

Cargoes loading or delivered four-six weeks forward from the date of publication.

Terms:

30-60 days after bill of lading date.

Standard cargo size:

The prices for bagged shipments are typically of 25-50 kg size.  The prices quoted for bulk shipments are typically reflecting business for parcels of 2,000-5,000 tonnes.

For Asia, the prices quoted for bulk shipments are typically reflecting business for medium sized parcels of 500-1,000 tonnes and large sized parcels of 1,000-3,000 tonnes.

Assessment basis:

In Europe and in the US, ICIS quotes annual prices for soda ash. Annual prices are typically agreed at the beginning of the calendar year for the whole year ahead.
Apart from US domestic consumption, the main export routes are natural ash from the west coast of the USA to Latin America and Asia.  China has emerged as the largest producer and is increasingly active in the export market.

The report offers market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence.

20 June 2012