It has been a difficult few years for soda ash producers and 2005 is going to be critical for the industry in Europe. Demand is expected to be strong. Pricing issues are dominant. Industry problems go back to 2001 when the price of soda ash had been static or falling for a number of years. This meant that many EU producers were already operating on dangerously tight margins. The global industry was then faced with a seismic shift, the effects of which were felt across Europe. The growth in the Chinese soda ash industry began to displace US producers from their traditionally strong position in SE Asian markets. This, combined with the introduction of new capacity through American Soda and the falling dollar, led the US industry look to the EU market. The subsequent influx of soda ash into Europe brought prices down further.
