A challenging market for the soda ash industry is expected over the next few years, following a 9.5% drop in world soda ash demand in 2009, representing a decrease in volume of 4.5M/t compared with 2008. From 2004 to 2008 soda ash enjoyed on average, an annual growth rate of almost 5%, but come 2009, the market was severely impacted by weak demand from its main consuming market - glassmaking. Further, world soda ash production operating rates averaged just 74% of capacity in 2009, thought to be the lowest rate the industry has ever seen. A new report, 2010 World Soda Ash Analysis by Chemical Market Associates, estimates that world demand in 2009 is expected to be close to 2005 volume, & is likely to take a few years for demand to come back to pre-recession levels. The next few years may be challenging, due to the considerable overhang of global capacity.
