In 2010, compared with major competitors in China, the cost advantage of US soda ash companies has exceeded US$100/tonne. Due to increasing pressure on energy costs, Asian synthetic soda ash prices have increased. This year, the cost advantage of US natural soda ash producers will be further expanded, and export competitiveness will be further enhanced.
The United States soda ash export consortium US natural soda ash company claims that about 70% of the world's soda ash production comes from the synthetic process, and the rest is processed with natural alkali deposits, most of which are distributed in the United States. Kevin McCarthy, an analyst at Merrill Lynch in the United States, said that rising raw material prices have made the cost advantages of US soda ash producers even more pronounced. Compared with Chinese synthetic methods, US companies' average soda ash costs in 2010 are as low as US$114 per ton. The spread widened 54% year-on-year. He believes that in 2011, due to increased pressure on energy costs, China's synthetic soda ash production costs will continue to increase. In return, the cost of energy such as natural gas and coal in the United States will be lower, and the cost advantage of U.S. producers will increase by about US$7/tonne on the basis of last year.
According to the ICIS assessment, the average spot price of soda ash in China on February 9 was US$260/ton, which was 41% higher than the same period of last year. On February 11, the US soda ash price was US$179/ton, compared with US$171/ton during the same period last year.
At present, the United States soda production accounts for about 25% of the world. The United States Natural Soda Ash Company stated that last year more than half of the soda production in the United States was exported, which was the first time in history. This situation will continue in 2011 due to further increase in price competitiveness.
US FMC Corporation expects that global soda ash market demand will continue to increase in 2011, and will increase by 4% to 5%, exceeding the historical peak demand of approximately 48 million tons in 2008. According to the US Geological Survey, last year, the US soda production capacity was 13.2 million tons, and the output was about 10 million tons, which was 700,000 tons more than the output of 2009. At the end of this year, domestic soda production in the United States is expected to climb to 12 million tons, a slight increase from 2010, mainly because FMC recently announced that it will restart a 1.3 million tons/year soda ash plant in Granger, Wyoming, USA. The device was idle in the second quarter of 2009 due to the market downturn.
Major US soda ash producers include FMC, General Chemicals and OCI Chemicals.
The United States soda ash export consortium US natural soda ash company claims that about 70% of the world's soda ash production comes from the synthetic process, and the rest is processed with natural alkali deposits, most of which are distributed in the United States. Kevin McCarthy, an analyst at Merrill Lynch in the United States, said that rising raw material prices have made the cost advantages of US soda ash producers even more pronounced. Compared with Chinese synthetic methods, US companies' average soda ash costs in 2010 are as low as US$114 per ton. The spread widened 54% year-on-year. He believes that in 2011, due to increased pressure on energy costs, China's synthetic soda ash production costs will continue to increase. In return, the cost of energy such as natural gas and coal in the United States will be lower, and the cost advantage of U.S. producers will increase by about US$7/tonne on the basis of last year.
According to the ICIS assessment, the average spot price of soda ash in China on February 9 was US$260/ton, which was 41% higher than the same period of last year. On February 11, the US soda ash price was US$179/ton, compared with US$171/ton during the same period last year.
At present, the United States soda production accounts for about 25% of the world. The United States Natural Soda Ash Company stated that last year more than half of the soda production in the United States was exported, which was the first time in history. This situation will continue in 2011 due to further increase in price competitiveness.
US FMC Corporation expects that global soda ash market demand will continue to increase in 2011, and will increase by 4% to 5%, exceeding the historical peak demand of approximately 48 million tons in 2008. According to the US Geological Survey, last year, the US soda production capacity was 13.2 million tons, and the output was about 10 million tons, which was 700,000 tons more than the output of 2009. At the end of this year, domestic soda production in the United States is expected to climb to 12 million tons, a slight increase from 2010, mainly because FMC recently announced that it will restart a 1.3 million tons/year soda ash plant in Granger, Wyoming, USA. The device was idle in the second quarter of 2009 due to the market downturn.
Major US soda ash producers include FMC, General Chemicals and OCI Chemicals.
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