Long-term Stability in Soda Market

(China Glass Network) Judging from the market demand, soda market will have long-term stability because soda is one kind of basic chemical raw materials.

First of all, Chinese urbanization will promote the demand of soda in the long-tem. As glass is the main downstream industry of soda, consumption accounts for nearly 50% of soda production. And glass is mainly used in construction and automotive industry. According to data from National Bureau of Statistics, Chinese urbanization rate is 46.6% in 2009, presenting a big gap from 75% in 2050. In addition, housing demand will still continue to grow for a large population in our country.

China has issued a series of macroeconomic regulations and control policies to make adjustment on real estate since 2010. But it was aimed at restraining the overheating of housing prices, not reducing supply. On Jan.27, 2011, State Council issued “Notice about Regulation on Real Estate”, which stated that the effective way was to increase the supply of housing and land. Especially, the construction of subsidized housing grew fast. Therefore, the demand for building glass also will remain stable growth.

With the growth of sustained economic and steady improvement of people's living standards, other downstream industries also will continue to grow, including flat glass, synthetic detergents, alumina, etc. Soda industry is expected to have very big development space.

Considering the market supply, soda production will be stable for industrial policy and energy conservation and emission reduction requirement. Moreover, soda demand will remain reasonable and stable growth. So soda industry will develop stably. With the gradual integration, the small and medium-sized soda enterprises will be eliminated out, which don’t match the requirements of emissions reduction and environmental protection. Owing to resources advantage and high technology, large soda enterprises will further develop.