AFPM ’12: Growing PVC volumes should lower caustic prices - Alcoa

01 April 2012 22:12  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Officials from aluminum major Alcoa said Sunday that increased chlorine production rates, particularly for the production of polyvinyl chloride (PVC), should lead to lower prices for co-derivative caustic soda.

The officials from the US-based company, which is a large consumer of caustic soda, told ICIS that there is little sentiment among consumers for the price initiatives made by caustic producers in recent weeks, especially because of lowered demand and oversupply.

The Alcoa officials spoke on the sidelines of the International Petrochemical Conference (IPC).

The officials said the unusually warm winter has strengthened the construction sector, a major user of PVC. Price initiatives from PVC producers seem to be taking hold, which also bodes well for increased PVC production.

In turn, they said, that would lead to an increase in the supply of caustic, which should send prices lower.

Some alumina makers have been talking about depressed demand in their own industry for months, indicating that they soon make major curtailments in production at facilities across the globe.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.

By: Ken Fountain

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