GHCL, RCF, And Other Chemical Stocks Rally Up To 9% After Soda Ash Price Rise – News18
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Shares of fertilizer and chemical stocks surged by nearly 9% on January 17, driven by a significant increase in soda ash prices.
Shares of fertilizer and chemical stocks surged by nearly 9%
Shares of fertilizer and chemical stocks surged by nearly 9% on January 17, driven by a significant increase in soda ash prices.
Gujarat Heavy Chemicals saw a 7% intraday jump, while Gujarat State Fertilizers and Chemicals, Rashtriya Chemicals and Fertilizers, and Fertilisers and Chemicals Travancore soared by up to 9%.
The rise in soda ash prices is a key factor behind the rally in chemical stocks, as soda ash is a vital raw material in industries such as glass, detergents, and chemicals. Higher soda ash prices often lead to improved revenue and profit margins for producers, driving up their stock prices.
Over the past year, soda ash prices had fallen sharply, dropping more than 30% year-on-year. However, Emkay Global recently reported that soda ash prices appear to have bottomed out, signaling a potential recovery.
In December 2024, the government introduced a Minimum Import Price (MIP) for soda ash. The Directorate General of Foreign Trade (DGFT) announced that the import policy for soda ash would shift from ‘Free’ to ‘Restricted,’ with a minimum import price set at Rs 20,108 per metric ton.
Soda ash is essential in multiple industries, including glass manufacturing, chemical production, and detergents. The government’s intervention aims to stabilize the domestic market and protect local producers from further declines in global soda ash prices.
Additionally, the DGFT noted that the current import policy will revert to ‘Free’ on July 1, 2025, unless there are further amendments. This development is significant for sectors dependent on imported soda ash.
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