Southern Africa liquid caustic soda supply to lengthen

07 March 2013 12:54  [Source: ICIS news]

LONDON(ICIS)--Liquid caustic soda supply could lengthen in southern Africa as a result of additional capacity coming on line in the Middle East in the first quarter, a trader told ICIS on Thursday.

"Solid flake trade has been pretty stable and I do not expect much to change, but the liquid market could lengthen because of additional cargoes from the Middle East," the trader said.

The trader's comments relate to the recent announcement by Saudi Arabia’s Sahara & Ma’aden Petrochemicals Co (SAMAPCO), that it will start up its 250,000 tonne/year caustic soda and 300,000 tonne/year ethylene dichloride (EDC) plant in the first quarter of 2013.

This will result in added length in the already long Middle Eastern caustic soda market and producers there will try to offload cargoes elsewhere.

A buyer in southern Africa last week said that prices could continue to decline and perhaps even reach $400/dmt CFR (cost and freight) Durban during 2013, driven by low demand from the alumina sector and lengthening supply from the Middle East. 

According to ICIS, liquid caustic soda prices in southern Africa are $440-500/dmt CFR Durban.

Middle East Capacity

Bandar Imam Petrochemical

Bandar Imam

260000

tonne/year

Operating

Arvand Petrochemical Co

Bandar Imam, Iran

660000

tonne/year

Operating

Saudi Petrochemical Co

Jubail Industrial City, Saudi Arabia

710000

tonne/year

Operating

Qatar Vinyl Co Ltd

Mesaieed, Qatar

730000

tonne/year

Operating

SAMAPCO

Jubail Industrial City, Saudi Arabia

250000

tonne/year

Start-up Q1 2013

Total

 

2610000

tonne/year

 

 

($1 = €0.77)  

Follow Janos Gal on Twitter @janosgalICIS 

 


By: Janos Gal
+44 208 652 3214



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