The cost advantage of soda ash in the United State

2022-10-16
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The cost advantage of U.S. soda ash has further expanded

in 2010, compared with its main competitor Chinese enterprises, the cost advantage of U.S. soda ash enterprises has exceeded $100/ton. Due to the increasing pressure of energy costs and the rising price of synthetic soda ash in Asia, the cost advantage of natural soda ash producers in the United States will be further expanded this year, and their export competitiveness will also be further enhanced. Their structural performance fully meets the requirements of experimental specifications

according to the US soda ash export consortium, about 70% of the world's soda ash production comes from synthetic processes, and the rest is processed from natural alkali deposits, most of which are distributed in the United States according to the standard requirements. Kevin McCarthy, an analyst at Merrill Lynch Securities, said that the rise in raw material prices has made the cost advantage of American soda ash producers more significant. Compared with China's synthetic method, the cost of American soda ash manufacturers in 2010 was on average $114/ton lower, and the price difference increased by 54% year-on-year. He believes that the production cost of synthetic soda ash in China will continue to increase in 2011 due to increased pressure on energy costs. On the contrary, the cost of natural gas, coal and other energy sources in the United States is currently lower, and the United States 1 The cost advantage of manufacturers in countries with longer processing operation time will be increased by about $7/ton on the basis of last year

according to the evaluation of ICIS, the average spot price of China's soda ash on February 9 was 260 US dollars/ton, an increase of 41% over the same period last year; On February 11, the contract price of soda ash in the United States was $179/ton, compared with $171/ton in the same period last year

at present, the output of soda ash in the United States accounts for about 25% of the world. Us soda ash company said that last year, more than half of the US soda ash production was exported, which was the first time in history. Due to the further improvement of price competitiveness, this situation will continue in 2011

American FMC company predicts that the global market demand for soda ash will continue to strengthen in 2011, with an increase of 4% - 5%, exceeding the historical peak demand of about 48million tons in 2008. According to the US Geological Survey, the US soda ash production capacity was 13.2 million tons last year, with an output of about 10million tons, an increase of 700000 tons over 2009. At the end of this year, the domestic soda ash production in the United States is expected to climb to 12million tons, a slight increase over 2010, mainly because FMC recently announced that it would restart a 1.3 million ton/year soda ash plant located in Granger, Wyoming, which was idle in the second quarter of 2009 due to the market downturn

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