Caustic Soda

Caustic soda, with its co-product chlorine, is produced via an electrolysis of brine, in the ratio of one part chlorine to 1.1 parts caustic soda. Chlor-alkali products can be manufactured using one of three processes – mercury, diaphragm and membrane, with the industry moving towards the membrane process.

Typically chlor-alkali manufacturers use a proportion of their chlorine captively, as it is used in the production of a considerable number of chemicals. The most important of these is vinyl chloride, which accounts for around a third of chlorine consumption. Other end uses include solvents, water treatment and inorganic pigments. Even the intermediates used to make chlorine-free products contain chlorine.

The largest end markets for caustic soda are organic chemicals, inorganic chemicals and pulp and paper, each accounting for about a fifth of consumption. Other important end uses include alumina manufacture, textiles and soaps and detergents.  In chemical manufacturing, caustic soda is used for pH control, acid neutralisation and as a catalyst.

ICIS pricing quotes caustic soda in Europe, Asia-Pacific, US Gulf, Latin America and China.

Frequency:

All reports are published weekly: China on Thursdays, Europe, Asia-Pacific, US Gulf, Latin America on Fridays.

Caustic Soda (Europe)

Weekly Price Assessments:

Liquid Caustic Soda Spot Prices

• FOB NWE (USD/DMT & conversion to US CTS/LB)
• FOB MED (USD/DMT & conversion to US CTS/LB)

Solid Caustic Soda Spot Prices

• FOB NWE (USD/MT & conversion to US CTS/LB)
• FOB MED (USD/MT & conversion to US CTS/LB)
• FOB EASTERN EUROPE (USD/MT & conversion to US CTS/LB)

Flake Caustic Soda Spot Prices

• FOB NWE (USD/MT & conversion to US CTS/LB)
• FOB MED (USD/MT & conversion to US CTS/LB)

Pearl Caustic Soda Price

• FOB NWE (USD/MT & conversion to US CTS/LB)

Caustic Soda (Asia-Pacific)

Weekly Price Assessments:

Liquid Caustic Soda Spot Prices

• FOB NE ASIA (USD/DMT & conversion to US CTS/LB)
• CFR SE ASIA (USD/DMT & conversion to US CTS/LB)

Caustic Soda (CHINA)

Weekly Price Assessments:

Export Prices (spot) – FOB CHINA

·        Liquid Caustic Soda (USD/MT)

• Flake Caustic Soda (USD/MT)

Domestic Prices (spot) - Liquid

•             NORTH CHINA EXWH (CNY/MT)
•             EAST CHINA EXWH (CNY/MT)
•             SOUTH CHINA EXWH (CNY/MT)

Domestic Prices (spot) - Flake

•             NORTH CHINA EXWH (CNY/MT)
•             EAST CHINA EXWH (CNY/MT)
•             SOUTH CHINA EXWH (CNY/MT)

Chlorine Spot Prices

• Shandong EXWH (CNY/MT)
• Jiangsu EXWH (CNY/MT)

 

Caustic Soda (US Gulf)

Weekly Price Assessments:

Liquid Caustic Soda Spot Prices

• EXPORT FOB USG (USD/DMT & conversion to US CTS/LB)
• BARGE FOB USG (USD/DST & conversion to US CTS/LB)

Liquid Caustic Soda Contract Prices

• FOB monthly (USD/DST & conversion to US CTS/LB)

Caustic Soda (Latin America)

Weekly Price Assessments:

Caustic Soda Domestic Prices

• ARGENTINA EX-TANK (USD/DMT & conversion to US CTS/LB)
• BRAZIL EX-TANK (USD/DMT & conversion to US CTS/LB)
• MEXICO EX-TANK (USD/DMT & conversion to US CTS/LB)

Caustic Soda Import Prices

• BRAZIL CFR (USD/DMT & conversion to US CTS/LB)
• COLOMBIA CFR (USD/DMT & conversion to US CTS/LB)
• MEXICO CFR (USD/DMT & conversion to US CTS/LB)

General Information:

Assessment window: Price assessments for the China report are based on information supplied by market participants through the week up to close of business on Thursday 1700 hours Shanghai time. The European and Asia-Pacific, US Gulf and Latin American price assessments are based on information supplied by market participants through the week up to close of business on Fridays at 1700 hours in London and Houston and 1730 hours in Singapore.

Specification: ICIS pricing assesses caustic soda on a 100% dry basis, and price ranges encompass product of all grades. In the China report, export prices are for 48% Membrane grade and 99% Flake, while domestic prices are for 32% Membrane grade and 99% Flake.

Timing: Cargoes loading four-six weeks forward from the date of publication. In the China domestic market, cargoes loading or delivered prompt.

Terms: 30-60 days after bill of lading date. For China domestic transactions only - payment at sight. For China export transactions, LC at sight to 30 days.

Standard cargo size: Export parcels are usually sold in cargoes of between 3,000-5,000 DMT.  They are shipped in a 50% solution and quoted as LMT.  Parcel sizes in Asia and the Mediterranean tend to be between 1,500-2,000 DMT. In the China report, the parcel size of flake tends to be 50-300 DMT; and that of liquid 500-5,000 DMT

Assessment basis: The European report offers assessments on liquid, solid, flake and pearl caustic soda. In Asia, including China, liquid and solid is covered, while in the US Gulf and Latin America assessments are only for liquid product.

European business is largely domestic liquid shipments, with spot offers out of ARA. In southern Europe, the main flows are from France and Spain to the eastern Mediterranean, though increasingly there have been higher profile exports from the Black Sea.

US business is mostly liquid caustic soda, sold domestically or shipped to ports around North and South America. In the domestic market, caustic soda is usually shipped from production centres along the US Gulf coast up the Mississippi river on barges and then distributed across the US and Canada. Exports mostly flow to alumina-producing nations such as Brazil, Jamaica and Suriname.

US caustic soda contract prices are based on monthly price negotiations between buyers and producers, with the lower end of the range typically representing prices to large buyers, while prices at the higher end of the range are paid by smaller buyers. These prices do not include discounts. Spot prices are assessed on a weekly basis and reflect spot trading between buyers and traders as well as producers.

Asian business comprises domestic sales, intra-Asian business and structural shipments from northeast Asia to the US west coast. FOB NE Asia includes China, Korea, Japan and Taiwan, while CFR SE Asia includes Malaysia, Singapore, Indonesia, Thailand, Vietnam.

China business comprises domestic sales and structural shipments from China to Australia and US West coast, FOB CMP includes Shanghai, Shandong, Taixing and Tianjin ports. Tax-inclusive EXWH prices of Chlor-alkali producers and the 1st tier distributors are discussed in China price assessments. North China refers to Tianjin and Hebei, east China to Shanghai, Zhejiang, Jiangsu and Shandong, south China to Guangdong, Fujian, Guangxi, Hunan, Yunnan and Jiangxi.

All regional reports offer market commentary that includes details of traced transactions, news on the supply/demand balance, export/import information, contract price negotiations and general sentiment for price direction. Where applicable there is product information, comments on up and downstream market developments and general market intelligence.