27 February 2013 21:57 [Source: ICIS news]
HOUSTON (ICIS)--Shintech on Wednesday announced a $50/dst (dry short ton) increase for US caustic soda, effective immediately or as contracts allow.
While the company did not cite a specific reason for the increase, a source close to the company said that supply of caustic soda from US Gulf producers is generally tight and demand remains strong.
February contract prices for liquid caustic soda are assessed by ICIS at $515-585/dst (€397-450/dst).
According to one large buyer, two other chlor-alkali producers, Axiall and Olin, have also announced price increases for both chlorine and caustic soda, which are co-products of the electrolysis process.
A representative at Axiall would not confirm whether it had announced any increases. Olin has not yet responded to inquiries.
The buyer expressed scepticism for the stated reasons for the increase, particularly a tight market. Noting that January figures from The Chlorine Institute showed an industry operating rate of 80%, the buyer said it would seem that producers might ramp up production.
The buyer said it was very unusual for producers to announce price increases for both chlorine and caustic soda simultaneously.
Major US producers of caustic soda include Axiall, Dow, Formosa, Occidental Chemical and Shintech.
($1 = €0.77)
Follow Ken Fountain (@ICIS_Ken) on Twitter
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections