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India: soda ash update

Average soda ash prices in India dropped steeply by 43.6% in August 2000 over August 1999. Prices have been depressed over the last several months, and the average price of soda ash during April-Augus…

Average soda ash prices in India dropped steeply by 43.6% in August 2000 over August 1999. Prices have been depressed over the last several months, and the average price of soda ash during April-August 2000 was 18.5% lower than in the corresponding period of the previous year. Soda ash production data available until June 2000 indicates healthy growth. Production growth in the first quarter of 2000-01 was 17.6% as opposed to a decline of 0.8% in the corresponding period of the previous year. Healthy production growth in the domestic market coupled with cheaper imports appear to be exercising downward pressure on soda ash prices. Caustic soda prices improved very marginally in June 2000 and the average price during April-August 2000 was 2.6% higher than in the same period of the previous year. Prices had declined by 0.4% in April-August 1999. Caustic soda production posted a healthy growth by 21% in the first quarter of 2000-01 compared to a 2.1% decline in the corresponding period of the previous year. Chlorine, sulphuric acid and titanium dioxide production growth was healthy at 13.8%, 8.5% and 7.7% respectively, during the first quarter of 2000-01.

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