Producers raise caustic soda in Argentina by $50

03 September 2008 22:25  [Source: ICIS news]

HOUSTON (ICIS news)--Persistently tight supply conditions in the southern cone have pushed up domestic caustic soda prices in Argentina by $50/dmt (dry metric tonne) this week, market sources said on Wednesday.

Although energy use limitations in Argentina have had a minimal effect on chlor-alkali production during the southern winter, producers said that critically tight supply conditions in Brazil have pushed up prices in Argentina because producers including Solvay and Dow Chemical sell material in both markets.

The increase pushed domestic caustic soda prices in Argentina into the $900-1,000/dmt (€621-690/dmt) ex-tank range, according to global chemical market intelligence service ICIS pricing.

Temporary maintenance shutdowns at Carbocloro and Braskem plants in Brazil would further tighten supply during September, producers said.

With caustic soda exports to Brazil dwindling and demand increasing, sources said prices were expected to move steadily upward.

Caustic soda producers in Argentina include Solvay, Atanor and Transchlor.

($1= €0.69)

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