China is the world’s largest soda ash producer and consumed more than 40% of total global supply in 2010. Driven by the high expectation of increased demand from downstream sectors, China’s soda ash industry has gone through a round of immense capacity expansion since 2005. During that period, China has also witnessed its soda ash output grow at annual rate of nearly 9%.
The global financial crisis hit the industry hard, causing sharp price fluctuations and weak demand. However since 2010, the industry has witnessed a resurgence, buoyed by the recovery in China’s domestic economy.
The recently released 12th Five-Year Plan for China’s Soda Ash Industry focuses on measures to curb unduly fast expansion of capacity, encouraging industry consolidation and vertical integration, economies of scale and improved product quality.
How will ongoing industry consolidation affect China’s supply and what influence will this have on world soda ash markets? How will the landscape of market competition change? How will the advocated greener production affect the economics of production?
Applying its proven first principles research methodology, the CM Group conducted a thorough, ground up analysis of the soda ash industry. Informed by the findings of numerous field visits, interviews with key industry players and data from our comprehensive industry database, the view generated from our analysis is original, up to date and - thanks to our exclusive access to primary data - often different from the prevailing market view or from that of other analysts.
The CM Group adopts both top down and bottom up methodology to assess the industry. Field studies are one of many tools used to conduct comparative regional research and to identify and rank producers. Our dedicated teams continually monitor industry dynamics and our databases are kept up to date with the most accurate data sources available to reflect the latest changes, pressing issues and market trends.
Backed by years of research experience coupled with a strong local presence and enviable industry network in China, CM Group has the proven capability to dig deep and deliver timely, independent insightful analysis to support informed decision making for the soda ash industry.