06 September 2012 17:01 [Source: ICIS news]
HOUSTON (ICIS)--US chlor-alkali producer Olin has proposed a $40/ton (€35/tonne) increase for hydrochloric acid (HCl), effective immediately or as contracts allow, a company source confirmed on Thursday.
The source cited looming tightness through the remainder of 2012, particularly in the fourth quarter, as a primary reason for the price initiative. Increasing demand, especially in the oil and gas production sector, where HCl is used in hydraulic fracturing, or fracking, combined with an anticipated drop in producing rates, will lead to that tightness, according to the source.
Olin’s price initiative is the same as one proposed by Occidental Chemicals. Other producers have either already announced or may soon be announcing similar initiatives, according to market sources, but those are not confirmed.
The US Gulf price of HCl is assessed by ICIS at $200-280/ton.
.An earlier round of price initiatives failed to be implemented because of lack of support. But market sources said there is a greater likelihood that the newest set of initiatives will gain traction.
Other major US producers of HCl include Dow Chemical, Bayer and PPG Industries.
($1 = €0.79)Follow Ken Fountain on Twitter (@ICIS_Ken)
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