Downstream photovoltaic glass demand supports "high prices" for soda ash companies to welcome industry peak season

On September 14, the domestic light soda ash price was 2,411 yuan/ton, and the heavy soda ash price was 2,656 yuan/ton.
Both have increased by more than 80% this year
.

The situation of this company is by no means unique
.

Since the beginning of this year, the prosperity of soda ash has continued to rise, and the spot price of soda ash has been raised more than 10 times, and has now risen to a high level in the past 10 years

As the price of soda ash continues to rise, the profitability of related listed companies involved in the production of soda ash has increased significantly
.

For example, Sanyou Chemical, Shandong Haihua, Zhongyan Chemical, Yuanxing Energy, etc.
, all saw a year-on-year increase in net profit in the first half of the year

The tight balance of supply and demand brings continuous price increases

The tight balance of supply and demand brings continuous price increases

"It's mainly due to the tight balance of supply and demand in the soda glass industry chain this year
.

" Talking about why the price of soda ash continues to rise, Mr.

It is understood that on the supply side, June to August is the traditional peak period for maintenance in the soda ash industry
.

From July to August this year, affected by the overhaul, the output of soda ash in a single month was reduced by about 300,000 tons, and the inventory of domestic soda ash manufacturers has been at a low level

On the demand side, the recent demand for photovoltaic glass has been significantly supported, and manufacturers' orders have followed up well.
In addition to rising costs, most soda ash companies have been more active in pushing prices up
.

　　"The fourth quarter is the traditional peak season for the soda ash glass industry chain
.

As far as I know, the orders of soda ash manufacturers are now very saturated.

　　From the perspective of demand stock, the total daily melting volume of float glass and ultra-white glass is more than 200,000 tons, which requires 43,000 tons of soda ash
.

The weekly output of heavy alkali fluctuates around 300,000 tons, equivalent to 43,000 tons per day, and supply and demand are basically in balance

　　Related listed companies have their own advantages

　　Related listed companies have their own advantages

　　Among the A-share listed companies, the main products of Sanyou Chemical, Shandong Haihua, Zhongyan Chemical, Yuanxing Energy, Huachang Chemical, and Yuntu Holdings all have soda ash, with production capacities of 3.
4 million tons/year and 2.
8 million tons/year respectively.
Annually, 2.
4 million tons/year, 1.
8 million tons/year, 660,000 tons/year, 600,000 tons/year
.

　　A few days ago, Sanyou Chemical stated on the investor interaction platform that the current production and operation of soda ash is stable, with sufficient orders, and basically full production and sales
.

The company's light to heavy alkali ratio is about 3:7, which can be adjusted in time according to market demand
.

　　Shandong Haihua is located in an important sea salt producing area in China.
It comprehensively utilizes the abundant local brine resources and has successively developed soda ash, raw salt, bromine, magnesium chloride and other products
.
The company's industrial chain layout is centered on the production of soda ash, with raw salt in the upstream and baking soda in the downstream, and supplemented by bromine, calcium chloride, potassium sulfate, magnesium chloride and other products.
It has significant economies of scale and synergy advantages between products
.

　　Sinosalt Chemical has salt resources in Inner Mongolia and Qinghai, with reserves of about 200 million tons, which provides raw material guarantee for the company's salt chemical industry.
At the same time, the production cost of trona method is low, and the quality of soda ash produced is high
.
The company said that the current soda ash products cover Hebei, Henan, Shanxi, Shaan, Sichuan, Shanghai, Jiangxi and other regions; the downstream is mainly distributed in the glass, alumina, inorganic salt, medicine, monosodium glutamate and other industries
.

　　The company announced on the evening of July 28 that Qinghai SDIC had publicly transferred its holdings of Fatou Alkali Industry through the Changsha United Property Rights Exchange.
The transfer price was 2.
83 billion yuan.
The company intends to transfer the listed equity through public delisting
.
Fatou Alkali Industry currently has a soda ash production line (Phase I) with a production capacity of 1.
4 million tons, and also has a soda ash production project under construction with a production capacity of 900,000 tons in the second phase
.

　　In addition, the company plans to implement a project with an annual output of 7.
8 million tons of soda ash and 800,000 tons of baking soda, and plans to acquire and increase capital in part of Yingen Mining
.
The project is expected to be put into production gradually after 2022, which will make the company the only domestic soda ash company capable of large-scale production expansion, greatly increasing the company's market share in the industry
.

　　Yuanxing Energy, as the largest trona production company in China, recently stated on the investor interaction platform that the current full cost of the company's soda ash is below 1,000 yuan/ton
.
It is understood that the company's trona method has low production costs, and the output of soda ash is of high quality, with obvious cost advantages, and the net profit is significantly higher than other manufacturers
.