Europe's May caustic soda stocks down 1%

17 June 2008 10:52  [Source: ICIS news]

LONDON (ICIS news)--May caustic soda stocks across Europe fell by 1.04% on April levels, according to figures posted by industry association Eurochlor on Tuesday.

Inventory levels for May totalled 257,339 tonnes, 6.3% lower than in May 2007 at 274,664 tonnes, according to the statement.

Output of co-produced chlorine, however, stood at 911,151 tonnes, up 4.2% on April and 6.3% higher than in May 2007.

Average daily production increased by 0.8% compared to April.

June production and stock levels were expected to take a further dive after news emerged last week that German chlor-alkali producer Vinnolit had declared force majeure on caustic soda from its 350,000 tonne/year plant at Knapsack.

Polish producer Anwil was also said to be experiencing problems with chlorine production but this could not be confirmed at source.

The news will be of little surprise to most market players who have become accustomed to increasingly tight market conditions.

It will however, firm the resolve of producers going into third quarter contract negotiations, a number of whom have nominated increases of between €120-140/tonne ($185-215/tonne).

Although discussions are still in their early stages, one producer said it was doing pleasingly well and had largely implemented its announced increases on a number of contracts.

Buyers were reluctant to disclose news on how contract talks were panning out. 

EU 25 + Norway/Switzerland: production and capacity utilisation

Month	Production (tonnes)			Capacity Utilisation (%)
	2007	2008	% change	2007	2008 (est)
January	923,012	920,462	-0.3	87.5	86.1
February	845,299	854,607	+1.1	88.8	85.4
March	906,139	916,394	+1.1	85.9	85.7
April	889,595	874,506	-1.7	87.2	84.5
May	856,970	911,151	+6.3	81.3	85.2

 

Caustic soda stocks (tonnes)

 

	2007	2008
January	299,541	274,625
February	297,068	249,762
March	302,498	277,515
April	321,209	260,049
May	274,664	257,339

 

($1 = €0.65)

 

To discuss issues facing the chemical industry go to ICIS connect

By: Adal Rafiq
+44 20 8652 3214

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly