AFPM ’19: US liquid caustic soda price decline felt in Brazil

SAN ANTONIO (ICIS)–Low prices for liquid caustic soda in the US are leading to lower caustic soda prices in Brazil, a source said on Sunday.

US producers with ties to the region have moved material out of the US market to balance the domestic market, causing long supply in Brazil, the Brazilian source said on the sidelines of the International Petrochemical Conference (IPC).

“They are exporting to keep their domestic prices down, and they are sending prices in Brazil lower than they should be,” the source said.

Prices in the US domestic market at distributor terminals have decreased in most regions to a range of  $530-570/dst (dry short ton).

Spot export prices of $350/dmt (dry metric tonne) are helping distributors in Brazil to offer material in similar price ranges, the source added.

US prices are expected to continue at its low level for most of the second quarter on the back of ample supply at the moment.

Upcoming plant turnarounds, however, could help bring the US market closer to balance.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 24-26 March in San Antonio, Texas.