12 October 2012 23:55 [Source: ICIS news]
HOUSTON (ICIS)--US caustic soda contract prices for September were assessed on Friday at a rollover, while increases for October were being implemented, sources said.
Contract prices for US caustic soda were assessed by ICIS at $500-570/dst (dry short ton) FOB (free on board) (€424-594/tonne).
Market participants are continuing to negotiate a set of price increase initiatives of $35/dst and $70/dst set for implementation in October.
A set of planned outages beginning this month is likely to increase the tightness in the market for the remainder of the year, sources said. A producer said demand remains relatively healthy.
One producer said that tightness is likely to extend into the fourth quarter of 2012, as several plants go into turnarounds and as production of chlorine, the co-product in the electrolysis process, begins to ramp down toward the end of the year.
Major US producers of caustic soda include Dow Chemical, Formosa, Georgia Gulf, Occidental Chemicals and Shintech.
($1 = €0.77)
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