US 2019 soda ash prices increase amid globally short supply

Manar Hindi

15-Jan-2019

HOUSTON (ICIS)–US 2019 soda ash prices were assessed upward by $10/short ton on Tuesday, based on market feedback.

Persistently tight global supply pressured US annual contract prices higher. The market generally accepted price increase initiatives, separately announced by producers.

Prices were assessed at $212-232/short ton.

Market fundamentals are largely unchanged, as worldwide demand continues to exceed global supply inventories.

Aside from meeting domestic contractual obligations, US producers have looked to export material to Latin America and Asia, where the market is underserved, as China has pulled back on exports.

Domestic demand for US material in 2019 is expected to be “fairly stable, with a slight pullback from 2018 demand,” according to one market participant.

While US material was sufficient to meet domestic demand, producers of US material focused on growing export opportunities as the global supply situation remains tight.

Global supply was tight throughout 2018 as the Kazan Soda Elektrik plant in Turkey, which did not relieve the worldwide shortage as was initially thought, was slow to ramp up.

All five lines were heard to be up and running by end-2018, though it is unclear whether the facility is at full capacity.

Scaled-back production at some Chinese synthetic soda ash facilities may also put pressure on global soda ash supply in the medium term.

Wyoming trona mines account for about 90% of the US production of soda ash (sodium carbonate). Downstream, about 50% of soda ash goes into glass making.

Producers of US soda ash include Genesis Alkali, Solvay, Tata, Ciner and Searles Valley Minerals.

ICIS Editorial Chart goes here

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?