[Asia] Contract Discussions Stall Over Raw Material

Asia's soda ash contract discussions for 2009 have stalled on the back of weaker demand for consumer items such as glass and detergents, said buyers and traders in December. "The auto industry in Japan, which is one of our biggest end users, has seen plummeting sales over the past few months. This has forced major car makers to reduce their production shifts from 3 to 2 days, which in turn, cuts their demand for our product by over 30%," said a source from Asahi Glass Co. The decline in spot prices due to weakening demand was also discouraging some market players to lock in on long-term contracts, market sources said.