Soda ash company performance warning industry prospects are worrying

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Soda ash company performance warning industry prospects are worrying July 19, 2012 13:52 Caijing.com Under the impact of overcapacity and insufficient demand, the price of soda ash has been declining, from 1,900 yuan/ton at the end of the second quarter of last year to the current 1,200 yuan/ton. In this regard, industry insiders said that the current soda ash industry still presents a situation of "oversupply" and soda ash prices may continue to fall. 　　Judging from the performance forecasts for the first half of 2012 recently released by many soda ash companies, the profitability of domestic soda ash companies in the first half of the year is not "very ideal." Recently, Shuanghuan Technology (000707.SZ), Tianma Refining Chemicals (002453.SZ), Shandong Haihua (000822.SZ), Qingdao Alkali Industry (600229.SH), Lantai Industrial (600328.SH), Huachang Chemical (002274.SZ) and other listed soda ash companies have released interim performance forecasts. The profitability of most companies in the first half of this year has declined to varying degrees. Among them, Shuanghuan Technology and Huachang Chemical Company were able to achieve profitability, but they both fell by more than 50% year-on-year. ； Shandong Haihua, Qingdao Alkali Industry, Lantai Industrial and other companies even suffered losses. 　　According to the performance forecast released by Shandong Haihua on the evening of July 5, the company's net profit attributable to shareholders of listed companies in the first half of 2012 was a loss of 160 million to 165 million yuan. On July 11, Lantai Industrial released a performance forecast, predicting a loss of about 14 million yuan in the first half of the year. On July 13, Huachang Chemical issued a revised performance forecast, predicting a net profit of 9.8852 million yuan to 12.7095 million yuan in the first half of the year, but a decrease of 55% to 65% compared with the same period last year. 　　Regarding the reasons for the obvious decline in performance in the first half of the year, most of the above-mentioned companies explained that due to the impact of the macro economy, the company's downstream companies did not operate enough and the demand was not strong, resulting in a significant decrease in the sales price and sales volume of the company's products compared with the same period last year. 　　Many people in the industry are not optimistic about the future of the soda ash industry. A staff member of Shuanghuan Technology told reporters that in the first half of this year, affected by the downturn in the glass and other building materials industries, the soda ash industry showed a very weak trend, and the company's profitability also experienced a significant decline. Regarding the future price trend of soda ash, the person said that the situation is not optimistic, "Judging from the current situation, the demand for soda ash is still difficult to see a significant recovery in the foreseeable period. ”　　An analyst at a brokerage firm who did not want to be named said that due to the decline in output growth of the glass and alumina industries, the soda ash industry has shown severe weakness in demand. He said that soda ash prices have begun to fall since the end of the second quarter of last year. They stabilized for a period in the fourth quarter, but this year, soda ash prices have begun to decline again. “The current price of soda ash is basically maintained at around 1,200 yuan/ton, which is far lower than the 1,900 yuan/ton in the second quarter of last year. ”　　However, it is worth noting that last week, in order to control the continued downward trend of soda ash prices, southwest soda ash manufacturers held a coordination meeting in Zigong City. The meeting decided to increase the price of soda ash by 50 yuan. The price of light alkali in various regions was 1,380-1,400 yuan in southern Sichuan, 1,350 yuan in eastern Sichuan, 1,350 yuan in northwest Sichuan, Guizhou, and 1,350-1,380 yuan in Yunnan. 　　“This move simply cannot stop the weakening trend of the soda ash industry. ”The above-mentioned analysts said that the increase in prices will only reduce the demand for soda ash. “The soda ash industry is very competitive, and controlling the decline in soda ash prices through this approach will be 'futile'. ”He said that currently the industry has shown a serious "oversupply" situation, with insufficient demand and overcapacity. 　　It is understood that the current operating rate of the soda ash industry is between 75% and 80%. “The operating rate is low and demand is insufficient. The soda ash industry is still seeing a recovery trend and may continue to decline.