APIC '08: Japan caustic sellers seek $70-100/t hike

28 May 2008 06:26  [Source: ICIS news]

SINGAPORE (ICIS news)--Japanese caustic soda producers aim to increase their domestic offers by another $70-100/dry metric tonne (DMT) to more than $400/DMT on strong demand and a robust export market, traders said on Tuesday.

Japan’s domestic prices of caustic soda in May have already increased $70/DMT over the previous month to $300-350/DMT delivered (DEL) but producers are seeking to further narrow the gap between domestic and export prices, which have surged by 65% in the past year.

“Local demand for caustic soda is strong, such as from the paper and detergent manufacturers but domestic prices are still lagging export prices,” a Japanese trader said on the sidelines of the Asian Petrochemical Industry Conference (APIC) in Singapore.

Asian caustic soda was last week assessed at $440-450/tonne FOB (free on board) NE Asia with most traders and producers expecting further price increases.

The rising domestic price of caustic soda in Japan is typical of most countries in Asia where producers are struggling with low inventory levels and strong local demand.

Japan produces about 4.2 million tonnes/year of caustic soda, of which more than 80% is for the domestic market, traders said.

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By: Ng Hun Wei
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