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Collective price increase in soda ash Enterprises

wallpapers News 2020-11-09

according to the China Securities Daily, Shong soda ash enterprises plan to collectively raise the price of soda ash by 20-40 yuan / ton in early December, 2% - 3% higher than the current low-end price of 1150 yuan / ton in East China, similar situations have occurred in other provinces.

analysts believe that soda ash has experienced a year a half of the downturn, the inventory of production enterprises is lower than the normal level, the downstream glass industry has come out of the bottom, the success of this price increase is more likely. Before the industry association has led the brewing for many times to limit production price protection, but none of them succeeded. The enterprise's initiative to raise the price may mean the coming of the turning point of the industry prosperity. The

stocks are relatively low, the price rise is imminent. According to the industry insiders of

, recently, the inventory of soda ash industry has fallen below the reasonable inventory, which makes the supply of soda ash supply decrease the market price trend shows signs of improvement. Shong manufacturers hope to take this opportunity to jointly raise the price by 20-40 yuan / ton in early December. Most of the soda ash enterprises in most parts of the country are eager to raise the price. It is expected that the price of soda ash will rise in different ranges. According to the data provided by Jia Baoxia, an analyst at the

business agencies, the capacity utilization rate of the national soda industry is low, about 7-80%. After the digestion of the downturn, the industry's inventory is on the low side. For example, the normal stock of Haitian in Shong is 30000 tons, now it is only about 25000 tons. According to the industry data of

, from January to October this year, the cumulative output of domestic soda ash enterprises was 2004 million tons, which was 19.131 million tons in the same period of last year, up 4.8% year-on-year. In 2011, the total output of domestic soda ash enterprises was 23.0331 million tons, with a year-on-year increase of 13.4%. Output growth has fallen sharply this year. Before

, soda ash industry association once led deliberated several times to limit production ensure price, but they failed in the end. In the fourth quarter of 2011, the soda industry has been in the process of recession. The industry association has convened more than once a meeting of production restriction price protection suspension of projects, but the enterprises have not carried out according to this. Industry insiders said that at that time, enterprise production was still profitable, no one was willing to take the lead in doing so.

is precisely because of the sharp rise in product prices, the domestic soda ash production increased sharply in 2011, the production capacity also exped simultaneously, which laid hidden dangers for the subsequent economic downturn. According to business agency data, by the end of 2012, China's soda production capacity is expected to reach 30 million tons.

by the third quarter of this year, the soda ash industry has suffered a lot. Wang Xiling, President of China Soda Industry Association, said in an interview with the media that the soda industry has encountered unprecedented difficulties. Affected by the sluggish market dem of soda ash downstream products at home abroad, the continuous increase of soda ash output, the price of domestic soda ash is going down all the way, the ammonia soda plant is in total loss. The downstream dem of

has improved. Analysts of

believe that although the inventory level of soda ash industry is still high at the end of the first half of the year, with the operation situation of the downstream industry improving the operating rate of the soda industry falling since the second half of the year, the inventory of pure soda enterprises has been rapidly digested, which directly leads to the current pattern of supply dem quietly changed. The consumption of soda ash by

glass accounts for 42% of the total domestic consumption of soda ash. The quality of glass industry is closely related to soda ash. A soda enterprise said that the changes in the glass industry will take about three months. The third quarter report of

listed companies showed that although the net profit of glass industry in the first three quarters decreased significantly year on year, from the perspective of month on month situation, the single quarter profit has turned into deficit. Xiangcai securities analysts said the glass industry's gross profit margin in the third quarter recovered to 16.99%, compared with 15.82% in the first quarter 16.19% in the interim. The industry gross margin cycle bottomed out in March this year, while the inventory cycle peaked last year, the worst may have passed. Wanlian securities analysts believe that the fourth quarter glass industry performance of listed companies is still expected to continue to improve. At present, the inventory level of glass industry is relatively low. In the first ten days of October, the total inventory was 26.6 million weight boxes, down 1.04% month on month; in the middle of November, the total inventory was 25.9 million heavy containers, down 2.5% month on month. Analysts believe that the low inventory level of the glass industry means that the dem for soda ash is difficult to further deteriorate. In fact, in November, the second line of fulette the second line of Hongyu were ignited, the dem for soda ash also formed a certain pull. Recently, China Securities Regulatory Commission (sfkds) China Securities Regulatory Commission (sfkds) approved the "spkds" futures trading in Zhengzhou. Industry analysis shows that after the establishment of the glass futures market, under the perfect security mechanism, glass production enterprises can register the overstocked inventory in the early stage as stard warehouse receipts, so as to exchange a large proportion of futures trading margin, so as to alleviate the plight of freezing their own funds, to some extent improve the operation ability of all funds in the whole industry chain from soda ash to glass. In terms of export of

, the export of soda ash this year is different from that of previous years, which plays an important role in digesting the surplus domestic output. The data shows that the export volume of soda ash has been decreasing year by year since 2010, from 2.232 million tons in 2009 to 1.514 million tons in 2011, with the export volume decreasing by 34.8%. However, the situation has reversed this year. In the first nine months, the export volume increased significantly year-on-year, with an increase of 12.2%. In September, the export volume reached 151000 tons, an increase of 60.9% compared with the same period last year. The main exporting countries are ASEAN, South Korea Japan, among which, soda ash sold to South Korea, Indonesia, Vietnam Thail accounted for more than 60% in recent two years. The upstream raw salt supply of

restricts the start-up of

. As China's soda production capacity ranks first in the world, there is a great pressure of overcapacity. Therefore, when judging the trend of future product prices, there are always worries that the price of products will be suppressed after the operating rate rises. In this regard, analysts believe that the raw salt of raw materials for soda ash production will be in short supply stage by stage, which will further limit the start-up of soda ash manufacturers provide support for the price increase of the whole industry. Shong Haihua [3.642.25% stock bar Research Report], Sanyou chemical [3.535.37% stock bar research paper], Shuanghuan technology [4.663.79% stock bar Research Report], Xindu chemical industry [8.19 3.80% stock bar Research Report], Hebang stock [12.25 4.26% stock bar Research Report], Qingdao alkali industry [5.493.98% stock bar research paper] other related companies welcomed the good.

data show that from January to October,China's crude salt output only increased by 3.4% year-on-year, which was lower than that of soda ash caustic soda. The decrease of actual supply growth rate was greater than that of dem decrease. Analysts believe that in the next half year, the domestic raw salt supply is limited the inventory level is low, there is a possibility that the industrial salt supply will continue to fall short of dem, which will restrict the capacity release of soda ash.

on the one h, raw salt inventory is low. From the data, the crude salt industry has entered a 10-year continuous inventory decline since 2001. Even if the seasonal factors are excluded, the absolute level of crude salt inventory is still at a historic low level, the downstream two alkali manufacturers also have no inventory. On the other h,

on the other h, due to the strong seasonality of crude salt production (mainly due to the requirement of light for sea salt crystallization), according to the statistics of the output distribution in the past seven years, 65% of the crude salt production comes from May to October each year, while November to April of the next year is the off-season of production, so it is difficult to greatly increase the supply. In terms of import, the import of industrial salt has maintained a growth rate of more than 30% in recent years, accounting for 7% of the original salt output. If domestic edible salt is excluded, the import volume is close to 10% of domestic industrial salt production.

in the long run, the rise of raw salt price will provide cost support for soda ash price. Due to the instability of sea salt production the conversion of salt fields to other uses (industrial parks mariculture), the effective crystallization area has gradually decreased. In particular, the output of Shong Jiangsu provinces, the major sea salt provinces, has basically not increased. The domestic increment mainly comes from the well salt in the west, the cost of well salt is higher than that of sea salt, which will further increase in the future (the mining depth will increase, the cost of electricity coal will rise). "

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TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.
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