Tata Chemicals, Gujarat Alkalies, GHCL shares rise on soda ash price hike buzz

Tata Chemicals, GHCL and Gujarat Alkalies & Chemicals shares were in high demand on Wednesday in anticipation of a rise in the prices of soda ash, a chemical used as input in a range of industries. Zee Business learned from dealer channel checks that domestic soda ash prices were in for a five per cent increase next week amid the closure of major Chinese plants for another three months. 

The stock of the Tata group chemical manufacturer gained by as much as Rs 47.4, or 4.7 per cent, to Rs 1,063 apiece on BSE. The stock of Gujarat Alkalies rose by Rs 26.9, or 3.7 per cent, to Rs 749.1 apiece and that of GHCL strengthened by Rs 45.5, or 7.7 per cent, to Rs 651.9 apiece at their strongest levels of the day. DCW shares surged by as much as Rs 6.7, or 11.9 per cent, to Rs 62.9 apiece. 

At 11:30 am, Tata Chemicals, GHCL, Gujarat Alkalies, Chemfab Alkalis, DCW and Lords Chloro Alkali shares enjoyed gains to the tune of 3-6 per cent after a strong start to the day. All of the companies produce soda ash.  

In the past two-and-a-half months, soda ash prices in China have increased by about 50 per cent, according to Zee Business research. 

What is soda ash and where is it used?

Soda ash, a common inorganic compound, is extracted from naturally-occuring trona. The chemical has its use in the manufacturing of a wide range of products, including glass, detergents, soaps and rechargeable batteries. It is also widely used in the production of a host of food products as well as in metallurgical processes.

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