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The Rate of Operation in Soda Industry Has Risen

Post Time:Jun 25,2009Classify:Industry NewsView:382

Since 2009, the rate of operation in soda industry has raised from less than 70% to more than 80% in May. The price of soda has been at the bottom. The whole industry operated at the loss. The united securities analyst thought that the demand for soda became less because of glass industry that is influenced by the real estate industry. Real estate started to recover gradually, which will promote the soda industry. The soda industry has the hope to welcome its spring.

The analyst pointed out that the new work area in real estate indicated the development of soda industry. Regression model showed that the new work area growth had a positive correlation with soda industry demand growth, and led before the soda industry demand growth for six-seven months. The sales of national real estate in May have set records. Though the new work area is still smaller than average area last year. The analyst estimated that in the third quarter of 2009, the new work area would rise and the demand of soda would recover gradually from the fourth quarter to early next year.

The price of main types of flat glass continued to rise in May, gaining a little profit, which was the third month for price rising since the price of flat glass reached the bottom in February. In May, the key glass enterprises’s production chain raise 4.46%, while sales chain dropped fall 6.05%. The stock started to rise after five months decline, which indicated that the capacity of the market needing glass was still unstable. According to the analyst’s statistics, there were five new or renew production lines in May to June. The increasing number of flat glass products could reach 1.1 billion ton/year. Except for a new stop line with 550t/d, the increasing number could reach 900 thousand t/year.

Though the rate of operation in Soda Industry had reduced a little, the price was stable. With the repair season coming, the analyst estimated that the rate of operation would continue to decline from June to July. This year, the decline of soda production was greater than the downstream production. The stock was in a lower level compared to last year.under this situation, the soda price and the rate of operation would react rapidly to the need of the downstream production.

Considering that the real estate started to come over, the soda industry had the safe margin and the analyst kept his opinion that the soda industry would keep on rising.


Source: GlassInChinaAuthor: shangyi

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