BEIJING, April 19 (Xinhua) -- China Soda Industry Association (CSIA), a national trade organization, has asked its members to curtail production as demand for the chemical compound widely used in glass falls and inventory builds up to the highest level in five years.
From April 18 to October 18, soda ash producers should cut production by 30 percent, which analysts say would result in output cuts of around 5.6 million tonnes, Shanghai Securities News reported.
Delayed work resumptions in downstream sectors due to the novel coronavirus outbreak had dampened demand, leading to inventory pile-ups and depressed prices that incurred losses for many businesses.
Data from commodity information provider 100ppi.com showed soda ash prices in east China came in at around 1,510 yuan (about 216 U.S. dollars) per tonne on April 15, down 26.6 percent from the level seen at the start of 2018.
By April 9, soda ash inventory hit a 5-year high of 1.41 million tonnes, according to information service provider Oilchem.
As downstream industries gradually recover, consumption is likely to recover to 6.2 million tonnes in the second quarter and the current market mismatch will see notable improvements if the production cut policy gets implemented, the Shanghai Securities News cited unnamed analyst from Shenwan Hongyuan Securities. Enditem
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