Currently, the market trend in China’s soda ash industry is stuck in a “quagmire””

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Yuanda Trading released on September 26: “The current soda ash market is facing extremely severe challenges.” With unsatisfactory sales prospects for soda ash both domestically and internationally, production levels of this substance have remained high, leading to a continuous decline in domestic market prices. As a result, some manufacturing companies have incurred losses. It is understood that in the short term, regulatory measures targeting the real estate sector will continue. Coupled with the ongoing increase in production capacity in the soda ash industry, this situation is expected to persist for some time. ” 　　According to industry insiders, in the first eight months of 2012, the soda ash market has been hit by one negative factor after another. The market transaction price of soda ash has fallen close to its cost price. According to statistics from the China Soda Ash Industry Association, currently, the domestic price of soda ash has decreased by 1,000 yuan per ton compared to its peak price last year. With soda ash currently in a downturn, it is inevitable that manufacturing companies will incur losses. 　　In China, alkali-intensive chemical products such as sodium dichromate, sodium silicate, sodium metabisulfite, sodium tripolyphosphate, sodium nitrate, and sodium nitrite, which use soda ash as their main raw material, are primarily exported to developed countries; exports account for 30%–50% of their total output. However, due to the current sluggish economic conditions both domestically and internationally, international market demand has declined significantly. With export volumes hindered and enterprises operating at only half of their usual capacity, the demand for soda ash has also relatively decreased. 　　Given that most domestic soda ash producers are currently incurring losses, each producer should appropriately reduce production volume and promptly adjust its production structure. They should also clarify their future development strategies in order to rectify the current situation as soon as possible, so as to jointly build a wonderful and happy home for us all. Date: September 26, 2012. Source: Guangzhou Yuanda Trading Co., Ltd. We strive to be the best in the fields of chemical industry in Guangzhou, Huadu, Foshan, Qingyuan, Conghua, Huizhou, Zhongshan, Dongguan, Shenzhen, Sanshui, and Jiangmen. Related topic: Currently, the market trend of China’s soda ash industry is stuck in a “quagmire””