Asian soda ash buying and selling price spreads continue to reach stalemate

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Asia's soda ash purchase and sale price gap continues to reach deadlock July 30, 2012 15:51 Business News reported that Asian soda ash spot price discussions have been at a deadlock since early July. The price difference between the two parties is too large and may not change significantly in the short term, industry insiders said. According to ICIS, the prices of 99% purity grade soda ash in the week ending July 26 were US$205-215/ton FOB China main port, US$220-240/ton CFR Northeast Asia, and US$220-235/ton CFR Southeast Asia. Compared with the beginning of June, the price dropped from 210-225 US dollars/ton FOB China main port by about 5-10 US dollars/ton, the price in Northeast Asia fell by 25-30 US dollars/ton, and the price in Southeast Asia fell by 15 US dollars/ton. 　　Most buyers are still waiting and watching because they expect prices to fall further in the near future, but manufacturers are unwilling to lower their offers. In addition, some buyers emphasized that the current inventory is sufficient and they will not rush to purchase spot goods before mid-August. A Northeast Asian glass manufacturer said that the upper limit of its willingness to purchase spot goods is US$200/ton CFR Northeast Asia, but the manufacturer does not consider lowering its offer to that level. 　　There are also a few manufacturers who hope to increase their quotations by US$5/ton to US$220/ton FOB China because production costs and raw material costs are increasing. According to ICIS data, the spot price of soda ash in Asia during the same period last year was US$280-310/ton CFR Northeast Asia, US$280-320/ton CFR Southeast Asia, and US$260-290/ton FOB China main port. Since February this year, prices have continued to decline. Soda ash is mainly used in glass manufacturing, other inorganic chemicals, detergents, flue gas desulfurization, water treatment, pulp and paper production.