Europe Q3 caustic soda rises, but softer than H1 July

LONDON (ICIS)–European caustic soda quarterly contract prices for Q3 continue to be settled in the market, with price increases but a softer tendency than earlier in the month, according to sources on Friday.

Settlements in France were heard at increases of €25/dmt (dry metric tonne), down from €30/tonne heard proposed earlier in the month.

Some Spanish prices were heard to have been settled at +€15/dmt, lower than the increases of €30/dmt targeted by several producers.

Italian prices were heard to have been settled at significantly lower levels than the levels attempted in H1 July, with one producer saying that it has resolved its contracts with increases of €15/dmt after proposing increases of €50-55/dmt earlier in the month.

The NWE (northwest Europe) market was still regarded as somewhat tight, with stocks seen as low and some producers also carrying out shutdowns in August.

Despite the typical summer slowdown in business activity, the market was still heard to be healthy in NWE. “Demand continues [to be] very strong as seems the market is lacking product,” one producer noted.

However, some players in the Mediterranean said that business had been slowed down by the upcoming holiday season and a coup attempt in Turkey which has added the political and economic uncertainty in the region.

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