GHCL, RCF, Fertilisers & Chemicals Travancore, other chemical stocks rally up to 9% as soda ash prices rise

In December 2024, the government decided to implement a MIP or minimum selling price for soda ash.

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26 Aug, 2025 12:21

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Shares of fetiliser and chemical stocks surged almost 10 percent in trade on January 17 as the price of soda ash jumped.

Shares of Gujarat Heavy Chemicals jumped seven percent intraday, while Gujarat State Fertilizers and Chemicals, Rashtriya Chemicals and Fertilizers, and Fertilisers And Chemicals Travancore skyrocketed up to nine percent.

Rising soda ash prices drive chemical stocks higher due to its critical role as a raw material in industries like glass, detergents, and chemicals. When soda ash prices increase, it often boosts revenue and profit margins for soda ash producers, lifting their stock prices.

Over the past year, soda ash prices have fallen significantly, falling over 30 percent on-year. However, in a recent report, Emkay Global noted that soda ash prices have more or less bottomed out, indicating a recovery.

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In December 2024, the government decided to implement a MIP or minimum selling price for soda ash. In a notification, Directorate General of Foreign Trade said the import policy for soda ash has been changed from 'Free' to 'Restricted' and that minimum import price is Rs 20,108/MT.

Soda ash is a crucial component in several industries, with significant applications in glass manufacturing, chemical production, and the detergent industry. The government's intervention is aimed at stabilising the domestic market and supporting local producers, as the MIP protects domestic players from further global soda ash price declines.

Furthermore, the notification stated that the current free import policy would resume on July 1, 2025, barring any subsequent amendments. This development impacts multiple sectors relying on imported soda ash.

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