Price of Soda Ash continue to slash due to Enter of New Capacity

（China Glass Network） New capacity of soda ash keeps increasing while market of the industry is still oversupplied. Part of capacity from Xuzhou Salt Chemical and Qinghai Kunlun has entered into the market  together, which causes accelerating decline of the price directly and another rise of inventory of East China.

Price of soda ash begin to fall from 2200 RMB/ton to 1400-1500 RMB/ton from May, 2011, and continue to slash due to enter of new capacity. May and June is the demand season of the year according to ever experience, sources reflect that new capacity of Qinghai and Xuzhou City is mainly concentrated on East and Center China. Inventory of Shandong Province has passed average stock of previous year.

Price of light alkali is about 1450 RMB/ton and heavy alkali is 1550 RMB /ton while mainstream price of Northeast China is 1600 RMB/ton and 1700 RMB/ton, which brings pressure to local manufacturers. Experts said that new capacity may keep banging the market with low price and the focus should be put on sluggish recovery demand from downstream.