Soda Ash prices in Asia and the USA experienced mixed trends last week, driven by fluctuations in production levels and varying downstream demand. While some Soda Ash plants increased output, others scaled back, leading to a decrease in overall supply. Downstream demand remained stable but unremarkable, primarily driven by essential purchasing needs. Despite these factors, shipments showed no significant improvement, and inventories of Soda Ash at individual companies increased, though production and sales across most producers remained largely steady.

In Asia, the National Day holiday brought a temporary boost in sentiment across several regions, driving up sales in many areas. However, after concentrated replenishment, demand for Soda Ash cooled, where temperatures dropped significantly, and sales in other regions followed a similar downward trend. In North China, the production and sales rates were notably high both before and after the National Day, as manufacturers made significant efforts to destock. Although shipments slowed after market sentiment cooled, inventories still saw a marked decline. East China experienced strong shipments and significant destocking driven by downstream stocking activities, easing inventory pressures for many manufacturers.

Despite weakening market sentiment post-holiday, the southwest managed to sustain balanced production and shipments. In the Northeast, float glass companies made significant destocking efforts, and downstream sentiment remained strong, although shipments slowed post-holiday as downstream buyers adopted a more cautious, on-demand purchasing approach. Overall, while the holiday period provided some temporary relief in terms of sales and destocking, the Soda Ash market across Asia remains cautious, with shipments slowing and sentiment cooling as the week progressed.

In the USA, the Soda Ash demand in the US glass market has been shown by the declining automotive sales in September 2024 and also lowered export demand. Despite this, FRED showed that glass production increased marginally prompting a slight recovery in the US Soda Ash market. The Conference Board Consumer Confidence Index dropped to 98.7 in September, down from an upwardly revised 105.6 in August. Consumers' assessments of current business conditions shifted to a more negative outlook, while their views on the labor market weakened further. Additionally, consumers became more pessimistic about future labor market conditions and less optimistic about future business prospects and income expectations.

As per ChemAnalyst, in the coming period, with the implementation of supportive policies and the gradual recovery of market confidence, both the real estate and Soda Ash industry chains are expected to stabilize in the USA and Asia. The resulting improvement in demand is anticipated to halt the decline in Soda Ash spot prices and potentially lead to a rebound.