Resumen de World Soda Ash 2015: : Chinese soda ash spills further into export markets
The country has idled some of its Hou-based soda ash production capacity in what IHS expects to become permanent closures of manufacturing lines. Hou process soda ash, which uses salt and ammonia as the principal raw materials to make synthetic soda ash, previously posted better margins than Solvay process material, which is made from salt and limestone. "This is not the case anymore," [Vincent Pedailles-Ledoux] said.
He explained that a recovery in the price of ammonium chloride, a chemical used in fertilisers produced as a by-product of Hou-based soda ash, this year had encouraged an increase in soda ash output in China. Ammonia prices averaged around $168/tonne last year and Hou-based producers also received a $63/tonne credit for making the material. However, IHS believes that this recovery in ammonium chloride prices is likely to be only temporary and that a fall in prices will undermine the competitiveness of Hou-based soda ash.
