US caustic producers seek increases of $40-50/dry short ton

HOUSTON (ICIS)–Two major US liquid caustic soda producers announced price increases on Monday, making evident an industry stance on 2015 business.

Dow Chemical on Monday announced a price increase of $50/dry short ton (dst) ($55/tonne) for both diaphragm- and membrane-grade liquid caustic soda effective immediately or as contract terms allow.

Axiall said it will seek an increase of $45/dst for all grades immediately with a similar caveat for when contract terms allow.

Olin on Friday said it will seek a $40/dst increase in the US, according to market participants. The terms of that increase were not immediately available on Monday.

The spate of separate announcements started on 20 November, when Occidental Chemical, a division of Occidental Petroleum, announced it is seeking price increases of $45/dst in the US and $50/dry metric tonne in Canada.

The moves represent about 80% of US producers and are geared for 1 January contract business and immediately for spot purchases.

The moves follow a steep decline in chlor-alkali plant utilisation rates in October and large volumes of exports shipped out of the US market in September and October, which reduced domestic supply and brought the market closer to supply/demand balance after months of long supply.

Other major US producers include Shintech and Formosa Plastics.