Caustic soda prices surge in response to downtimes at chlorine plants

摘要

The caustic soda (NaOH) market in Western Europe has been showing signs of scarcity over recent weeks. Scheduled and unscheduled maintenance breaks have disrupted market equilibrium in the past weeks and producers report that plants are continuing to take downtime in the third quarter. Amidst strong demand and low supply, suppliers have partly resorted to substantial price hikes. Following an interim step, which they successfully implemented in the second quarter, several NaOH suppliers are aiming to take prices above €400/t. Negotiations for terms and conditions for deliveries in thethirdquarterindicate that pricesare poised to rise again. While the increases in April amounted to €30-40/t, producers not infrequently announced hikes of €60-90/t for contract prices as from July. EUWID respondents confirm that negotiations are proving to be difficult for buyers. Depending on the region and freight costs, NaOH producers are reportedly insisting on a price of €400/t. However, contracts already signed also include lower prices. NaOH industry representatives speak of a seller's market. Availability continues to be limited, while demand from the different buyer segments in Germany as well as Central Europe remains stable through the summer months at the high levels seen in March. Industry experts note the trend also on the international market. Furthermore, produc- tion plants have been taking downtime in Europe and elsewhere, resulting in reduced supply. Market conditions will not change in the coming weeks, say industry experts, which is why prices on the international market are rising. Meanwhile, the spot market is very quiet and expensive. Consumers find it very difficult to buy at attractive prices, sources report. European NaOH producers, on the other hand, can benefit from lucrative business opportunities on the export market.