Brazil caustic soda producers to seek $50 hike

22 May 2008 18:10  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian caustic soda Braskem has proposed a $50/dry metric tonne (DMT) (€32/DMT) domestic price hike to be implemented on 1 June amid tightening supply conditions, a source close to the company said on Thursday.

However, a competing producer in Brazil called Braskem’s nomination conservative and said it would likely implement an even greater price hike for June.

Market sources in Brazil said domestic price hikes are typically implemented with little warning and without negotiation.

Domestic caustic soda prices in Brazil were assessed last week in the $700-750/DMT CFR (cost and freight) range, according to global chemical market intelligence service ICIS pricing.

Brazil relies on imported caustic soda to feed its booming alumina and pulp-and-paper industries, but with the availability of imported material quickly drying up amid globally tight supply conditions, producers said prices in Brazil were likely to surge during the summer months.

($1 = €0.63)

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By: Greg Holt
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