Santos port congestion drives away caustic soda

07 May 2008 23:06  [Source: ICIS news]

HOUSTON (ICIS news)--Caustic soda importers in Brazil are considering alternatives to bringing in material through the chronically congested Santos port near Sao Paulo, sources said on Wednesday.

Demand for caustic soda is fierce in Brazil, where local alumina and pulp-and-paper industries require large quantities of caustic soda imports to maintain production.

Shipments not headed for Brazil’s alumina producing region in the northeast typically arrive at Santos - Latin America’s largest port - but an ongoing port worker strike and congested ship traffic delay the unloading of some shipments for weeks at a time, a buyer in Brazil said.

Frustrated at their inability to get caustic soda to buyers in a timely fashion, traders are considering importing material through other ports, such as the Maceio port in the northeastern state of Alagoas, the buyer said.

Most of the caustic soda shipped to Brazil is typically produced in the US, but sources said an increasing share of imports have arrived from Europe and Asia amid supply tightness in the US Gulf.

Caustic soda import prices in Brazil were assessed in the $600-660/DMT (dry metric tonne) (€390-429/DMT) CFR (cost and freight) range during the week ended 2 May, according to global chemical market intelligence service ICIS pricing.

($1.00 = €0.64)

For more on caustic soda visit ICIS chemical intelligence

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By: Greg Holt
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