Soda Ash Producers Report Lower Demand, Price

Ciner Resources LP of Atlanta, GA has reported a second quarter 2020 net loss of US$3.3 million on net sales of US$76.2 million compared with a net income of US$11.3 million on net sales of US$129.8 million in the same period of 2019.

Ciner’s international soda ash sales fell over 60%, to US$32.0 million, reflecting a 51.8% decrease in sales volumes, to 231.2 million tons, and an 18.8% decrease in average selling price to US$138.41/ton. The company’s domestic sales fell 7.9%, to US$44.2 million, reflecting a 1.7% decline in sales volumes, to 195,300 tons, and a 6.3% decline in average selling price to US$226.32/ton. The decrease in volumes was primarily attributable to the decline in global demand as a result of the COVID-19 pandemic.

Natural Resource Partners LP (NRP) of Houston, TX reports that 49%-owned Ciner Wyoming was negatively impacted by the COVID-19 pandemic as lower activity in the global auto, container and construction industries reduced demand for glass and soda ash in the second quarter of 2020. Revenues and other income were lower at US$14.4 million compared with the prior quarter primarily due to a combination of lower pricing and volumes sold.

NRP says that distributions received from Ciner Wyoming were US$7.1 million in the second quarter of 2020 compared with US$9.3 million in the second quarter of 2019. NRP notes that the managing partner of Ciner Wyoming has reduced distributions to fund a multi-year capacity expansion project (see ISN, March 9/20) expected to start later this year. However, they have delayed the timing of significant costs related to the project until they have more clarity and visibility into the impact of COVID-19 on its business.

Genesis Energy LP of Houston, TX reports that its Sodium minerals and sulfur services segment generated a segment margin of US$24.8 million in the second quarter of 2020, versus US$57.7 million in the corresponding period of 2019. The company says that the decrease was primarily due to lower volumes and pricing in its Alkali business and lower NaHS volumes in its refinery services business. The segment produced 594,810 tons of soda ash in the second quarter versus 824,881 tons in the prior year period. Production of caustic soda fell from 20,525 tons to 20,326 tons.

Solvay SA of Belgium reports second quarter sales for its Performance Chemicals segment of €658 million (US$773.7 million), a 21.3% decrease from the second quarter of 2019. In soda ash and derivatives sales were down 16.6%, to 359,000 tons, as demand for flat and container glass applications impacted volumes, while pricing was relatively stable.

Volume 34, Issue 16

Leave a Reply