HOUSTON, Jan. 4 /PRNewswire/ -- Chemical Market Associates, Inc. (CMAI) announces the completion of the 2010 World Soda Ash Analysis, an annual global study that covers past and future developments in supply, demand, production, capacity, trade, pricing and profitability of the global soda ash industry for the period 2004 to 2014. Included with each analysis is 12 months of access to CMAI's online capacity and supply/demand databases with a mid-term supply/demand update incorporating the latest economic and market outlook. New for 2010 editions is access to the key graphics contained in the Analysis in both Microsoft Excel and PowerPoint. The Analysis is a necessary resource for business managers and planning professionals who need to make strategic business decisions in a rapidly changing global economic and market environment.
After growing at an average annual rate of almost 5 percent per year since 2004, world soda ash demand fell by about 9.5 percent in 2009. This represented a loss in volume of about 4.6 million metric tons compared to 2008. Demand in 2009 is estimated to be close to the 2005 volume, and it will likely take a few years for demand to come back to pre-recession levels. As a result of weak demand, world soda ash operating rates averaged just 74 percent of capacity in 2009, likely the lowest rate the industry has ever seen.
Soda ash is a basic chemical product with a primary application in the glass industry. In general, soda ash demand tracks fairly closely with GDP. However, in 2009, demand in most regions of the world tracked more closely to the trend in industrial production rather than GDP. World industrial production in 2009 is set to fall by about 9.5 percent below the 2008 level versus a forecast decline in GDP of 2.1 percent. Therefore, CMAI's forecast for a decrease in soda ash demand of 9.5 percent is in line with the decline projected for industrial production.
The soda ash industry is in an evolutionary phase. Part of the current changes are a legacy of the difficult environment the industry faced a decade ago, and part is a reflection of the changing global economic environment. The rapidly developing economies of China, India and Russia are prompting changes across the world, and pose both opportunities and challenges for this industry. The difficult economic environment faced by the industry in 2009 will precipitate some further changes in future years.
The next few years are likely to be challenging for the soda ash industry, due to the considerable overhang of global capacity. Unless there is some rationalization, some of the planned capacity is scaled back, and/or demand recovers faster than projected, margins for many producers will likely to take some time to recover.
To find out more about the current market issues and CMAI's outlook for soda ash industry, order this analysis now at www.cmaiglobal.com. The analysis is available in electronic format along with access to CMAI's Online Capacity and Supply/Demand databases on CMAI'S website. With updates to the Capacity database as changes in the marketplace occur, and an annual mid-year update to the Supply/Demand database, clients can rely on these databases as a necessary tool for their strategic business decisions.
CMAI is the premier provider of Market, Planning and Business Advisory services offering a unique combination of consulting analytics and expertise for the global chemical, plastics, fibers and chlor-alkali industries. With offices in Houston, New York, London, Dubai, Dusseldorf, Singapore and Shanghai, CMAI has provided expert business advisory services to a broad base of companies across multiple value chains and geographies since 1979. Clients to CMAI services include chemical and oil companies, technology & EPC companies, banking and financial institutions, plastic converters, textile & apparel manufacturers, brand-owners, grocers/retailers, government agencies and trading companies.
Contact: Anne Geraci 1-281-531-4660
SOURCE Chemical Market Associates, Inc.