French soda ash producer, Novocarb has set out its vision to change the way soda ash is priced in a move that echoes the titanium minerals industry.
The Nancy based-company is looking to introduce a formula, developed by Pascal Bandelier, that takes into production costs for soda ash to more fairly reflect its price rather than being dictated by long term contracts.
The formula is also a challenge to the influence of China on pricing as the leading producer.
The input materials at highest risk of fluctuation, and therefore impacting on soda ash producer’s margins, are coal, gas and freight rates this is what Novocarb is targeting.
Soda ash production in Europe is synthetic, manufactured by the Solvay method, and as such is beholden in many ways to energy markets.
Gas and coal are used to produce steam, and also power generation for the plant. While coal...