Market players report soft prices in negotiations for Q1 deliveries of caustic soda in January

摘要

Suppliers of caustic soda (NaOH) have been unable to fulfil their price ambitions at the turn of the year 2016. While at the end of 2015 manufacturers and buyers were discussing on a potential increase or rollover of NaOH-prices from the fourth into the first quarter, EUWID sources have been reporting a greater abundance of soft prices at the start of the year. In the round of pricing continued at the outset of the new year, electrolysis operators find themselves exposed to growing competitive pressure. Demand is said to not have risen sharply, and in one place or another observers have perceived a distinct interest in deliveries amongst suppliers. Buyers are taking advantage of this situation and are successfully endeavouring to get prices down in the remaining negotiations still underway in January 2016. Market players frequently report a drop of €10/t, and it seems that even price cuts of €20 were possible in scattered instances. The bulk of deliveries of 50% caustic soda solution in the first quarter of 2016 is thus believed to be going to take place at €340-380/t, calculated on a 100% concentration basis. As market experts explain, the sinking tendency at the start of the year seldom has an effect in the negotiations for longer-term contracts such as those ; with a term of twelve months. More marginal ; mark-ups are being negotiated and fixed there depending on the baseline.