Tata Chemicals shares slide after it cuts soda ash prices
The company reduced the price of soda ash by 5 per cent (Rs 1800), which came into effect today (August 2).
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03:35 PM IST
Tata Chemicals shares fell 2.17 per cent to Rs 1049.00 in early trading after the company cut soda ash prices for the fourth time in the current financial year. The company reduced the price of soda ash by 5 per cent (Rs 1800), which came into effect today (August 2). In the Financial Year 2023–24, soda ash prices have been cut 18 per cent.Â
A decline in the cost of soda ash is passed on to customers. It is likely the reason for the sharp fall in the share price.
For some time, the chemical sector has been facing a decline in demand. Apart from that, Inner Mongolia has increased its supplies by 1.5 million tonnes.
Such factors have led to many cuts in the price of soda ash.
Tata Chemicals Share Trend
Before a sudden fall on Wednesday morning, the shares of Tata Chemicals were in good health with a 5.06 per cent rise in the last five sessions compared to a 1.05 per cent fall of the Nifty 50 in the same period.
The shares of the chemicals firm have performed well in the last one month with a rise of 4.06 per cent as against the Nifty 50's 1.62 per cent rise in the last one month.Â
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Tata Chemicals Price Cut Trend
The company had made a huge cut of 7 per cent, or Rs 2,300, in the prices in June. In May, the cut was Rs 1,200 or 3.4 per cent. It was followed by a 3 per cent cut (Rs 1,000) in April.
The decision to cut the price of soda ash will cost dearly to Tata Chemicals, DCW, and GHCL, while it will benefit companies such as HUL, Jyothi Labs, BOROSIL, AGI Greenpac, UBL, and USL.
Tata Chemicals Price cut trend
| Month    Per MT       Change | ||
| APRIL     Rs 1,000         -3% | ||
| MAY       Rs 1,200         -3.4% | ||
| JUNE       Rs 2,300        -7% | ||
| AUGUSTÂ Â Rs 1,800 Â Â Â Â Â Â Â Â Â Â Â Â Â -5% |
Losers After Price Cut
| Tata Chemicals | |
| DCW | Â |
| GHCL | Â |
Gainers After Price Cut
| HUL | Â |
| Jyothi Labs | |
| BOROSIL | Â |
| AGI Greenpac | |
| ubl | Â |
| USL | Â |
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