Upward pressure noted on Brazil caustic soda from US hike announcements

22 May 2013 23:48  [Source: ICIS news]

SAO PAULO (ICIS)--The Brazilian domestic caustic soda market is facing upward pressure from the $40/dry metric tonne (dmt) price increases announced earlier in the US, a local source said on Wednesday on the sidelines of the Feiplastic 2013 exhibition.

The source said that eventually caustic soda prices will rise in Brazil in line with firming prices in the US and with higher shipping costs.

However, Brazilian caustic soda supply and demand are in balance in the face of the upward pressure on prices, the source added. A period of tight availability was evident in the first part of 2013, resulting from production issues after a power blackout late last year.

For this year, caustic soda consumption in Brazil is expected to rise by 2-3% above 2012, according to the source, an improvement over lower growth rates registered in the first four months of the 2013. Demand generally increases in the second half of the year over the first.

Feiplastic continues through Friday.

By: Ron Coifman
+1 713 525 2653

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