15 September 2012 00:24 [Source: ICIS news]
Correction: In the ICIS story headlined “US caustic soda contract prices roll over to August” dated 15 September 2011, please read in the third paragraph …at $500-570/dst … instead of … at $500-700/dst … A corrected story follows.
HOUSTON (ICIS)--Monthly assessed US caustic soda contract prices rolled over on Friday.
The contract prices for August rolled over from July. Caustic soda contract prices for any particular month are usually assessed in the following month.
Contract prices for US caustic soda were assessed by ICIS at $500-570/dst (dry short ton) FOB (free on board).
Market participants continue to review a set of price increase initiatives by producers that would mostly take effect in October, sources said on Friday.
In recent weeks, producers have announced price increase initiatives of $35/dst and $70/dst, effective immediately or as contracts allow. Producers have cited tight supplies caused by a series of outages, includes ones made in anticipation of the 28 August landfall of Hurricane Isaac at the US Gulf coast.
The producers have also pointed to what they say is healthy demand, both in the domestic and export markets, as reasons for the price increases.
Buyers have voiced resistance to the price initiatives, saying they do not see the tightness cited by producers. One large buyer noted that with high chlorine production rates in August, there should be more material available on the market. Caustic soda is a co-derivative of the electrolysis process that produces chlorine.
Major US producers of caustic soda include Dow Chemical, Formosa, Shintech, PPG, Olin and Occidental Chemicals.
($1 = €0.77)
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