04 September 2012 21:06 [Source: ICIS news]
Correction: In the ICIS story headlined “US Shintech proposes $70/dst increase on caustic soda” dated 4 September 2012, please read in the fifth paragraph …at $500-570 … instead of … $500-700/dst. A corrected story follows.
HOUSTON (ICIS)--Shintech is seeking a $70/dst (dry short ton) increase for caustic soda, effective immediately or as contracts allow, the US-based chlor-alkali producer announced on Tuesday.
Shintech's price initiative is the fifth by a major US producer made in the past two weeks. On 31 August, PPG Industries announced a $35/dst increase, which followed earlier ones of $70/dst made by Occidental Chemical, Dow Chemical and Formosa.
Shintech did not provide a reason for its initiative, but other producers have cited an expected constriction of supply as demand for chlorine, the co-derivative in the electrolysis process that producers caustic soda, dampens during the closing months of 2012 as well as a series of planned outages. Producers have also said that demand for caustic soda remains healthy, both domestically and abroad.
But buyers, particularly large buyers such as alumina producers, have resisted the argument that demand is still strong.
US contract prices for caustic soda are assessed by ICIS at $500-570/dst.
A distributor said on Tuesday that it is likely the price initiatives will be implemented incrementally.
($1 = €0.79)
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