08 May 2009 22:15 [Source: ICIS news]
HOUSTON (ICIS news)--US caustic soda contract prices for April settled lower by $150/dst (dry short ton) due to pressure from lower-priced imports and diminished demand, buyers and sellers said on Friday.
The price reduction pushed US contract prices to $525-600/dst (€394-450/dst) FOB (free on board), according to global chemical market intelligence service ICIS pricing.
Producers said a rush of exports to the US from Asia and Europe during an extended arbitrage window compounded with falling demand to cause prices to drop by triple-digit levels for the third consecutive month.
A widening price gap between contract and spot prices left producers with a defence against buyers’ demands for a contract price reduction, but a source said the arbitrage window has since closed and production rates have been reduced.
US caustic soda producers include Olin, Georgia Gulf, Dow Chemical, Occidental Chemical, Bayer, Shintech, Formosa Plastics and PPG Industries.
($1 = €0.75)
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