Effective July 1, 2024, the American Natural Soda Ash Corporation (ANSAC) will raise export prices by USD 25.00 per metric ton (MT) on all non-contract sales of Soda Ash and on contracted sales where contract terms allow. This price adjustment reflects the tightening global supply and increased demand for Soda Ash. Meanwhile, prices will also be increased in the major importing market of US Soda Ash including Southeast Asia countries and India.

On June 10, 2024, the ANSAC announced a price increase in the Soda Ash export market as they are seeing a tightening of the global Soda Ash supply environment, leading to an increase in demand for the product as stated by Jeffrey Jacobson, President of ANSAC.

ANSAC functions as the export sales, marketing, and logistics division for Genesis Alkali, a top producer of natural Soda Ash in the United States. Genesis Energy, L.P., based in Houston, Texas, is a diverse midstream energy master limited partnership. Its portfolio includes offshore pipeline transportation, soda, and sulfur services, marine transportation, and onshore facilities and logistics. These operations are mainly located in the Gulf Coast region, Wyoming, and the Gulf of Mexico.

From a demand perspective, downstream inquiries from the glass industry rose in May 2024, driven by low stocks. As per the data of the US Bureau of Labor Statistics, cooling inflation and a lower Consumer Price Index (CPI) compared to the previous month also improved procurement sentiments in the US Soda Ash market. Additionally, the energy index in the USA dropped by 2.0 percent in May after a 1.1 percent increase in April. The natural gas index fell by 0.8 percent, and the fuel oil index declined by 0.4 percent over the month, while the electricity index remained unchanged. Consequently, downstream production rates have increased due to reduced cost pressures.

Additionally, as a result of the announcement regarding a USD 25 per metric ton (MT) increase in export prices, effective July 1, Tata Chemicals is expected to increase the Soda Ash prices. ANSAC's decision to raise prices presents an opportunity for Tata Chemicals to potentially implement similar rate adjustments. This move could boost their revenue while maintaining their competitive position in light of the current market trend of tightening supply and growing demand.

As per ChemAnalyst, Soda Ash prices in the US market are expected to rise due to tight supply, as American producers face uncertainty regarding the duration of reduced production rates amid adverse weather conditions. Some buyers are delaying spot purchases, anticipating a price drop later in the summer. However, the seasonal increase in downstream glass demand may continue to push U.S. Soda Ash prices higher. In May and June 2024, U.S. crude futures prices averaged between USD 73 and USD 78 per barrel, providing no strong indication to adjust upstream crude oil production at this time.