10 July 2009 23:59 [Source: ICIS news]
LONDON (ICIS news)--European caustic soda spot prices fell $20/dmt (dry metric tonne) (€14/dmt) on the back of ample availability and severely reduced demand.
Producers struggling to offload material confirmed that spot trades of $60-80/dmt FOB (free on board) NWE (northwest Europe) and MED (Mediterranean) were taking place.
The range was at its lowest levels in over five years, according to global market intelligence service ICIS pricing.
While prices of $50/dmt FOB were widely reported in the market, there was not enough confirmation from sellers to substantiate this.
“Prices were around $50/ dmt FOB fourteen years ago,” said one producer in central and eastern Europe noted.
“The situation is getting critical for producers,” a seller in northwest Europe said. “If quarterly contract prices drop below €300/dmt and PVC [polyvinyl chloride] prices remain around €700-800/tonne, it will not be worth producing.”
($1 = €0.71)
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