Increasing Demand for Renewable Energy to Drive the Demand for Soda Ash in India | ChemAnalyst
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As we know that the focus on renewable energy is increasing which is supported by both government and private sector investments in the sector. This is strongly driving the demand for Soda Ash which has major applications in flat glass for solar applications.
It is due to this increased demand for Soda Ash which is the reason for upwards firmness in the prices of Soda Ash in India in the recent scenario.
The industries which use Soda Ash as a key ingredient in their manufacturing process have swung back into action post-COVID constraints and are working at full operating efficiency. It is expected that the rise in demand will continue with sustainable growth foreseen in both the construction and automobile sectors. More significantly, as the focus on sustainability increases, even higher growth is and will continue to be witnessed in the demand for PV solar panels which are made of high-quality solar flat glass.
Soda Ash is a product of the Chlor Alkali process and has major applications in the glass, chemicals, soaps and detergents, metallurgy, water treatment, pulp & paper. The global demand for Soda Ash stood at around 55 million tons in 2020 and is expected to grow at a CAGR of 5.54%.
As per ChemAnalyst, “the rising demand for renewable energy and more sustainable energy solutions have compelled the countries including India to develop policies regarding increasing the usage of sustainable energy solutions including solar panels which will surely require Soda Ash production. Hence, the demand for Soda Ash will be experiencing growth from the renewable energy sector in the near future.”
In China, the Soda Ash market outlook strengthened amidst the cost support of the key feedstock Caustic Soda. Feedstock prices in the Chinese domestic market constantly observed an uptrend due to the rising cost pressure on raw materials in China. As a ripple effect, prices observed a consistent surge with FOB Shanghai discussions settling at USD 261 per tonne. The supply outlook in China remained influenced by the joint impact of curtailed synthetic Soda Ash production, and higher shipping freight charges. However, export to India declined in April and May period due to a decline in demand from Covid the second wave.
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