07 December 2012 23:26 [Source: ICIS news]
HOUSTON (ICIS)--US caustic soda contract prices for November are assessed at a rollover after a set of price initiatives made earlier by producers were not fully implemented.
In the meantime, market participants are negotiating a new round of price hike announcements, who cited continuing snugness in supply because of outages and logistics issues.
Liquid caustic soda is assessed by ICIS at $515-585/dst (dry short ton) (€437-497/dry metric tonne (dmt)) FOB (free on board).
At least five producers have announced increases, according to market participants.
PPG Industries announced a $75/dst increase, effectively immediately or as contracts allow, specifically for shipments to the US east coast. Rail and barge shipments to the east coast have been hampered following the late October landfall of Hurricane Sandy.
PPG’s announcement was followed by initiatives of $50/dst by Dow Chemical, Formosa and Shintech, effective on 1 January or as contracts allow. These were not restricted to the east coast.
Market sources said Olin made a similar announcement, although that was not confirmed.
Meanwhile, spot and export prices were said to be firming on the tightness in supply, according to market participants.
($1 = €0.77)
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