13 September 2013 15:45 [Source: ICIS news]
LONDON (ICIS)--INEOS ChlorVinyls announced earlier this week plans to target a €50/tonne ($67/tonne) increase in the price of caustic soda effective from 1 October, although buyers on Friday questioned the hike.
"List prices for INEOS ChlorVinyls caustic soda are to increase by €50 per dry metric tonne with effect from 1 October 2013," the company said on Thursday.
As the market is balanced-to-long and there are no supply problems, buyers questioned the viability of an increase.
"I think there is no way for prices to go up, the speech from producers is that operating rates will drop and so stocks [will also drop] and this is what they will argue to increase prices," a buyer said.
However, "everybody will be reducing inventories [too] by [the end of the] year, we will do so, therefore demand will drop further also," the buyer added.
In fact, the buyer thought that there was room for prices to drop in the fourth quarter in the European market.
($1 = €0.75)
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