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Southern soda ash market recovery

Recently the South soda ash prices rose slightly, up 50 yuan / ton or so, we judge this phenomenon reflects the gradual improvement in demand for soda ash downstream. soda sales by the transport radius of influence, Guangdong, Hubei and other provinces of flat glass production year substantial growth, leading to the first recovery of soda ash market in the South.

9 Yuefen China's soda ash output of 1.7536 million tons, reaching the highest level, growth of 11%, an increase of 9.24% capacity utilization rate of 87.68%. We expect Q4 soda ash production will remain at high level.

10 Yuefen real estate area of 082 million square meters of newly started, an increase of more than 50% in October completed in an area of 043 million square meters, at a high level this year. Flat Glass industry is still at a high boom cycle, pre-cut-off 40 production lines, about 3 percent of the production line to resume work, and other production lines are also being gradually resumed. under construction in more than 20 production lines will also be focused on the second quarter of 2010 release.

is expected in 2009, 2010, flat glass production growth rate of 5.5%, respectively, 10%, other industries and the GDP growth rate of demand growth in soda ash equivalent to 8.3% and 8.5% in 2010 Apparent consumption of soda ash will reach 19.55 million tons, estimated at 2.5 million tons of net exports in 2010, soda ash production is expected to reach 22.05 million tons. We expect that by 2010, the actual capacity of 24.5 million tons, corresponding to the industry operating rate will reach 90%. " BR>
as a recovery in demand soda ash industry, the trend has become profitable turn for the better. We expect that in 2010 industry average operating rate of 90%, which means that soda ash industry will revert to a reasonable gross interest rate (eg 2004-2006), while the price does not appear Fast sharp rise (eg, 2007). we judge the industry by 2010, gross margin of 15% -20%. If the addition to other industries outside the flat glass industry, demand for soda ash recovery rate exceeded our expectations, then the soda ash industry, its profit will be significantly to improve.

proposes a focus on double-loop technology, Shandong Haihua, three Friends of the chemical industry. bicyclic main market in the Hubei and Hunan Guangdong and Guangxi Science and Technology will be the first to benefit from the recovery of soda ash in the South. Shandong Haihua, and double-loop performance of technology companies on the Soda greater price elasticity. "

Date:[2009-11-9]

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