Tata Chemicals has cut prices of domestic soda ash for all grades by up to ₹1,500 per tonne due to oversupply in the domestic market.
The Tata Group company reduced the prices of soda ash light by ₹1,000 per tonne. Similarly, the prices of soda ash dense and GRANPLUS were lowered by ₹1,500 per tonne, the company said in a stock exchange filing.
The prices would be different for different markets due to other costs.
Soda ash is used in a wide range of products such as detergents and batteries and glass manufacturing, metallurgical processes. It’s a key ingredient across the food, cosmetic and pharmaceutical industries.
Since the beginning of 2023, Tata Chemicals has taken a 20% cut in soda ash prices amid increased supply in local markets.
The company in a conference call after the second quarter financial results noted that the net supply of soda ash from China had increased post its reopening.
Oversupply in the soda ash market has come in earlier than expected and domestic supply has been impacted due to higher imports.
The company acknowledged that there were challenges in the global supply chain but only for a short term.
Tata Chemicals reported a 27.1%year-on-year decline in net profit to ₹495 crore for the July-September quarter compared to ₹680 crore in the year-ago quarter.
Its total revenue declined 5.7% year-on-year to ₹3,998 crore in the second quarter of this fiscal against ₹4,239 crore in the quarter that ended a year ago.
The company's MD and CEO R Mukundan had then stated that the demand environment for soda ash in domestic markets and the US was stable.
Tata Chemicals shares were trading 0.36% lower at ₹969.05 apiece at 11.20am on Thursday, November 30.
(Edited by : Shloka Badkar)
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