homebusiness Newscompanies NewsTata Chemicals Share Price: Domestic brokerage says company cut Soda Ash prices yet again, stock declines
Tata Chemicals Share Price: Domestic brokerage says company cut Soda Ash prices yet again, stock declines
In the last few months the company has cut soda ash prices by 17 percent, Centrum wrote in its note. The brokerage said that Chinese domestic soda ash prices have also corrected from $350 per MT in April to $250 per MT now.
Shares of Tata Chemicals plunged more than four percent on Wednesday after the company lowered soda ash prices due to improved availability of the product in the global market, stable domestic demand and softening of fuel costs.
The Tata Group company has slashed domestic soda ash prices by Rs 1,800 per metric (MT) tonne to Rs 30,500 MT, according to brokerage house Centrum Broking.
In the last few months the company has cut soda ash prices by 17 percent, Centrum wrote in its note. The brokerage said that Chinese domestic soda ash prices have also corrected from $350 per MT in April to $250 per MT now.
The brokerage has attributed the revision in domestic soda ash price to a correction in energy and fuel prices, stable domestic demand and an improvement in soda ash availability globally.
Centrum mentioned in its note that the domestic Soda Ash price revision will impact margins for companies like Tata Chemicals. However, it expects normalisation to emerge in the coming quarters.
Soda ash is used in glass manufacturing as well as the production process of FMCG goods such as soaps and detergents. It is also used in high-value products like batteries. In addition, it is also used across the pharmaceutical, metallurgical and cosmetic industries.
In May, Tata Chemicals reduced soda ash prices, taking it to the lowest level in 15 months. The company slashed the price of light soda ash to Rs 33,900 per MT from Rs 35,100 per MT earlier.
The price cut was undertaken in Andhra Pradesh, Telangana, Karnataka, Maharashtra, Bihar, Jharkhand, and Chhattisgarh.
Shares of Tata Chemicals are trading 3.1 percent lower at Rs 1,039.15. The stock is up 10 percent year-to--date.
First Published: Aug 2, 2023 10:22 AM IST
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