![]() Consequently, the recent upswing in Soda Ash prices in Europe in Q3 was governed by the limited supplies and increase in international and regional offers including Belgium and other European countries amidst expansion in the automotive industry sales volume.Īt the start of the 2nd Quarter, prices of Soda Ash in the North American market were stable due to unchanged demand from the glass industry. ![]() The forthcoming weeks are expected to be more affected by declining production rates than by low demand. During August 2023, in Germany, Soda Ash prices gained upward momentum as the regional participants slowly came back from their extended summer vacations and chose to cautiously engage in pre-purchasing activities for the month ahead. Furthermore, industrial producer prices in August 2023 saw a 0.6% increase and remained stable in September 2023, reflecting a steady state of inflationary pressures in the regional market according to data from the Eurostat Commission. Concerns about reduced demand in the glass industry segment among market participants were overshadowed by supply reductions within the Eurozone. The European market saw a notable increase in Soda Ash prices during the Quarter ending September 2023, driven by growing uncertainty surrounding production rates in the Chlor Alkali industry, which had a cautious impact on Soda Ash market players as well. Additionally, the overall rise in the Soda Ash price trajectory has resulted from the supply limitation since August 2023 amid typhoons in the country followed by the holiday season in China during Q3. Hence, the last price increase in September 2023 has resulted from the limited supply in line with the improving downstream demand fundamentals. Meanwhile, some of the merchants across the nation had reduced production run rates ahead of the Golden Week Holiday in China in the H1 of September 2023. ![]() Apart from the export prices, the domestic production in the downstream glass manufacturing industry elevated amidst rising Chinese glass industry offtakes in the building sector along with the automotive industry prompting inclination in the Soda Ash demand fundamentals this month. The inclination in the regional demand is expected to keep the export prices of Soda Ash on the northward side in October as well. In Asia, the prices of Soda Ash surged in the September 2023 ending quarter, owing to the elevation in the international offers coupled with the robust demand in the glass production industry. Thus, the average month-on-month price of Soda Ash light was quoted at USD 33/MT Ex-Works Wyoming (USA) at the termination of the Q3. From the demand perspective, the Soda Ash price dynamics gained strength in the US market as a result of elevating glass consumption in the nation’s automotive industry since the start of August 2023. Therefore, the Soda Ash market players experienced a shortage of inventories to fulfill the existing offers. Likewise, an improvement in international and domestic offers this week prompted the Soda Ash market bullishness in the US market. Moreover, the export prices of Soda Ash in the USA were impacted by the rise in output costs amidst high energy prices. ![]() Moreover, the rising uncertainties in the production run rates along with supply disruptions caused by Hurricane Idalia, and as a ripple effect, limited the availability of stocks in the middle of the quarter. The Soda Ash prices exhibited an upsurge in the quarter ending September 2023 in the North American region, owing to the escalating international demand amidst rising consumption in the glass industry.
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