Tata Chemicals has once again cut soda ash prices, reducing it to the lowest level in 15 months. It has cut the price of light soda ash to Rs 33,900 per MT from Rs 35,100 per MT earlier. The price cut has been undertaken in Andhra Pradesh, Telangana, Karnataka, Maharashtra, Bihar, Jharkhand, and Chhattisgarh.

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On Tuesday, the company also declared revisions in other grades of soda ash throughout the country.

Prices of soda ash peaked towards the end of 2022, due to high energy prices. While prices remained elevated throughout the remainder of the year, they had been steadily falling. The price of the compound saw a drastic drop since the start of 2023, with the company setting the price as Rs 36,000/MT in the middle of February 2023, before dropping it to Rs 35,100/MT by the middle of April 2023.

Brokerage firm Centrum says that the domestic soda ash price revision is prompted due to a correction in energy and fuel prices. As a result, there has been an improvement in global Soda Ash availability. The revision in prices is expected to have a limited impact on the margin of Tata Chemicals' domestic segment and GHCL, Centrum said.

Soda ash is one of the most highly consumed inorganic materials on the planet with nearly half of the global production of the compound being used in glass manufacturing. It is also used in the manufacturing process of FMCG goods like soaps and detergents and high-value products like batteries. The compound also sees use across the pharmaceutical, metallurgical and cosmetic industries.

Brokerage firm Morgan Stanley recently put out an overweight rating on Tata Chemicals shares, expecting a 21 percent upside after the company posted its Q4FY23 results with a 54 percent jump in profit after tax for the period. Morgan Stanley had a price target of Rs 1,192 per share.

Shares of Tata Chemicals are trading 3.4 percent lower at Rs 953.80.