China soda ash export prices fall; domestic demand weak

SINGAPORE (ICIS)–China’s export prices for dense grade soda ash weakened this week as producers cut offers amid weak domestic demand, market sources said.

On 15 July, prices were assessed at $215-220/tonne FOB (free on board) China, down $5/tonne from the previous week, with lower discussions for July and August deliveries, according to ICIS data.

Export offers were quoted lower as demand from China’s domestic downstream flat glass sector was weak, reflecting sluggish real estate and construction activities, a local producer said.

Offtakes in southeast Asia declined ahead of the Eid-ul-Fitr holiday, which marks the end of the Muslim month-long fasting month of Ramadan, on 17 July.

Selling indications for dense grade soda ash were heard at around $220-225/tonne FOB China from producers based in Hebei and Jiangsu provinces.

A southeast Asia-based buyer was offered dense grade cargoes at below $220/tonne FOB China for cargoes from Shandong, whereas selective cargoes from Jiangsu were heard being offered at a lower level of $210-215/tonne FOB China to Vietnam for July and August deliveries.

A stockist capped bids for the dense grade product at around $220/tonne CFR (cost and freight) SE (southeast) Asia but no deals transpired during the week ending 15 July. The buyer opted to carry over discussions to the following week, as end-users put off purchases ahead of the upcoming Eid Al Fitr holidays.

In northeast Asia, buying interest was constrained to September-delivery cargoes as demand from the downstream detergent sector is described as stable to soft, market sources said.

China’s export prices of the light grade soda ash similarly edged lower to $210-215/tonne FOB China, down by $5/tonne at the high end of the range.

Offers from Jiangsu-, Shandong- and Tianjin-based producers were mainly at $210-215/tonne FOB China.

Weak demand is expected to persist into August, with buyers taking a wait-and-see stance on the market, a Tianjin-based producer said.

Deals were heard concluded at around $210/tonne FOB China to Vietnam, or equivalent to a landed price of $215-220/tonne CFR Vietnam.

Soda ash is mainly used in the manufacture of glass, metallurgy, paper, textile, dyeing, synthetic detergent, soap, washing powder, etc.