Europe soda ash producers to target increases in 2013

12 October 2012 17:28  [Source: ICIS news]

LONDON (ICIS)--European soda ash 2013 annual contract prices might increase by about €10/tonne ($13/tonne) next year, sources said on Friday.

Soda ash producers have come out with initial 2013 price ideas this week and said they needed to pass on higher energy and transport costs.

"It is a bit too early to speculate about 2013 pricing, but high energy costs definitely make it necessary to increase prices," a western European producer said.

A second producer estimated transport costs have gone up by about 8-9% this year and running its plant has become more expensive as well, so it will try and pass on the higher costs to its customers.

One buyer said it will not agree to increases and it will target to roll its contracts over because demand has been poor this year and does not expect an improvement in 2013.

Demand for soda ash from the flat glass industry has been especially poor in 2012 which has resulted in the shutdown or closure of a number of production plants.

However, demand from the soaps and detergents and glass bottle industries has been good, mainly driven by public and sporting events, sources said.

($1 = €0.77)

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By: Janos Gal
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