Aug hike of $115-130 sought for US caustic soda

15 August 2008 00:06  [Source: ICIS news]

HOUSTON (ICIS news)--US caustic soda producers have proposed August contract prices increases in the $115-130/dst (dry short ton) range amid continuing tight supply conditions, market sources said on Thursday.

The increase comes on the heels of proposed July price hikes of $155-160/dst (€94-97/dry metric tonne) that market sources said were still being negotiated this week.

Producers said they would continue to nominate price hikes until supply/demand fundamentals achieve some level of balance.

Buyers said they were told the increase was a result of rising energy costs, but few said they believed the nomination was motivated by anything but profit.

“Someone needs to step up and do something here,” one buyer said. “The distributors we buy from don’t have any incentive to negotiate because they know they can pass the increase along.”

July contract prices for US caustic soda were assessed in the $790-855/dst FOB (free on board) range, according to global chemical market intelligence service ICIS pricing.

These prices included an initial $75-80/dst price hike already implemented, but not the second proposed increase of $160/dst for the month that is still being discussed.

US caustic soda producers include Olin, Georgia Gulf, Formosa Plastics, Westlake Chemical, Bayer, Shintech, Occidental Chemical and Dow Chemical.

($1 = €0.67)

For more on caustic soda, visit ICIS chemical intelligence
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By: Greg Holt
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