Shin-Etsu increases Japan caustic soda $140/DMT

11 June 2008 10:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan's Shin-Etsu will raise its domestic prices of caustic soda by around $140/dry metric tonne (DMT) effective 22 July, bringing its average price to well over $500/DMT, a source close to the chlor-alkali producer said on Wednesday.

Japanese traders and producers attributed the price hike to tightening supplies in a bullish caustic soda market as well as sluggish demand for chlorine derivatives such as polyvinyl chloride (PVC).

Weak demand for chlorine would limit caustic soda production as both are manufactured in the same production process.

Japan’s production of caustic soda in April decreased 1% year on year, according to latest industry statistics.

Current domestic prices of caustic soda in Japan ranged from mid $300s/DMT DEL (delivered) to $500/DMT DEL, market players said.

Shin-Etsu is the fifth largest caustic soda producer in Japan.

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By: Ng Hun Wei
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