Outlook

Dumped import of soda ash has been a major concern for the soda ash industry. As a result of imports, the domestic industry is not able to increase its prices in proportion with the increase in cost. This is impacting the margins of soda ash producers. The imports were earlier depressing and now suppressing the prices of the domestic industry in the market. The Finance Ministry has imposed a definitive anti-dumping duty on soda ash imports from Russia and Turkey. This anti-dumping duty will be valid for a period of five years.

The Alkali Manufacturers' Association of India (AMAI) had filed the petition seeking anti-dumping probe on soda ash imports from Russia and Turkey. The application was made on behalf of the domestic industry — Nirma Ltd, Saurashtra Chemicals Ltd, Gujarat Heavy Chemicals Ltd and DCW Ltd. In the case of soda ash imports from Russia, the anti-dumping duty has been pegged at $35.99 per tonne. For soda ash imports from Turkey, the anti-dumping duty ranges from $18.39 per tonne to $75.16 per tonne depending on the producer and exporter.

Government's decision to levy an anti-dumping duty on soda ash imports is set to keep their price in upward trajectory. Demand for soda ash would mainly be driven by buoyant consumption from key user industries like glass, soap and detergents. All these factors are likely to keep prices of soda ash firm in the domestic market in the near term.