The shortage of the hottest supply leads to the ri

  • Detail

Tight supply has led to higher caustic soda prices in the United States and the European Union

it is reported that recently, the market prices of caustic soda in the United States and Europe are facing upward pressure, because the global chlorine demand downturn has led to a reduction in the operating rate of caustic soda, which has led to a tight supply of caustic soda products developed from materials such as vice twists and turns in recent months. The operating rate of chlor alkali in the United States has been below 90%, which limits the supply of caustic soda and indirectly leads to higher prices

according to the data of American chlorine Institute, the operating rate was 87% in August, 85% in July, and 90% in the first half of this year. In addition, according to the European chlor alkali Association, the utilization rate of chlor alkali production capacity in Europe in 2011 will remain within the range of 77% and 83%. In addition to the weak demand for chlorine, sporadic operation failures and regular maintenance are another reason for the tightening of caustic soda inventory

according to market participants, the shortage of caustic soda supply in the United States and Europe may intensify. Recently, both Dow Chemical of the United States and arcoma of Europe have announced that they have encountered force majeure. On October 4, Dow announced that the supply of 50% caustic soda solution in Freeport, Texas was force majeure. Due to mechanical failure, its caustic soda production capacity in Texas was 3.63 million tons/year

as early as August, some American manufacturers announced that they would raise the price of caustic soda products by $65/ton (dry), and said that they would further raise the price in October and November. Major caustic soda producers in the United States include Formosa Plastics, Aolin, oxychem, Georgia Gulf, PPG industries, shintech and West Lake chemical

however, American buyers said they would continue to resist the new price increase plan and would not accept any price increase. According to the evaluation of ICIS, the contract price of American liquid caustic soda in September was USD/dry ton FOB. The contract price in October has not been determined and is still under discussion, market participants said

at the same time, European caustic soda producers have announced that they will raise their prices by euro/dry ton in the fourth quarter of this year. On the whole, several manufacturers, including Ineos, Dow Chemical and AkzoNobel, have made it clear that they hope to increase the contract price in the fourth quarter by 100 euros/ton, and the quotations of other manufacturers will increase by euro/ton. Since August, the supply of caustic soda in Europe has been increasingly tight. It is expected that the supply tension will continue in October and November, market participants said

it is said that due to the lack of demand for chlorine derivative products, such as PVC, this anti cutting glove contains three layers of elastic fabric, which leads to the continuous decline of chlorine production load in Europe. However, the demand for caustic soda is still strong, resulting in a tight supply of caustic soda. In terms of production, on September 30, Acoma announced that the supply force majeure was caused by the strike at its berrel'etang base in France

as of press time, Arkema said that the force majeure of caustic soda supply in its French production plant had been lifted and the operation returned to normal. According to ICIS assessment, the spot price of liquid caustic soda in Europe is USD/dry ton FOB northwest Europe and USD/dry ton FOB Mediterranean. However, most manufacturers said that at the meeting, we learned that China's testing instrument industry is still in a state of "survival in the cracks", and there are no spot products beyond the contractual obligations

note: the reprinted contents are indicated with the source. The reprint is for the purpose of transmitting more information, and does not mean to agree with their views or confirm the authenticity of their contents

Copyright © 2011 JIN SHI