Shares of Tata Chemicals fell 5.5% in early trade on April 18 after the company cut prices of light soda ash and high-strength soda ash across India by 3-4% on Monday.

The price cut comes as Chinese soda ash prices have fallen since mid-March as the market adjusts to news that Yuanxing Energy will unexpectedly ramp up production capacity in China’s Inner Mongolia region from May 2023.

Shares of Tata Chemicals also reacted negatively to the news, trading 4.07% higher at Rs 950.50 at 9:49 am on the National Stock Exchange.

A total of 700,000 shares of the company’s stock changed hands on the exchange, compared with a one-month daily average of 500,000 shares.

Yuan Xing Energy’s capacity expansion was expected to be completed later. However, according to recent information, the plant is poised to expand next May, starting with a capacity of 1.5 million tonnes per annum (TPA). This capacity is expected to increase gradually over the year, reaching 5 million tonnes annually by the end of 2023.