25 September 2009 17:29 [Source: ICIS news]
LONDON (ICIS news)--European caustic soda spot prices are up by $10-50/dry metric tonne (dmt) (€7-34/dmt) due to tightening supply and some improvement in demand, sources confirmed on Friday.
Spot prices were assessed at $150-200/dmt FOB (free on board) in both northwest Europe and the ?xml:namespace>
Although it was widely confirmed that spot prices were improving, this was mainly attributed due to the fall in availability as a result of low operating rates and various ongoing production problems, rather than any significant change to demand fundamentals.
However, numerous manufacturers, who were targeting hikes of €80-85/dmt for the fourth quarter, were confident that the increase in spot figures gave a good indication as to where the quarterly market was heading in the coming weeks.
Producers noted that increasing spot prices would exert pressure on contract prices.
“Producers are in a good position to push increases through,” said one reseller.
“The market is pretty tight but some production issues will be resolved in October, so we will have to see whether this impacts on availability in the market.”
($1 = €0.68)
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