Caustic Soda Price Dips, but It’s Still High
By Tom Stundza -- Purchasing
Eighteen of the 45 chemicals tracked by purchasingdata.com rose in price in the last year. Caustic soda took one of the biggest jumps.
Though the price has dipped somewhat in the last three months, liquid caustic soda has more than doubled in price since January 2008, going from $388 per ton to $788 per ton last month.
Supply is tight because production of its co-product, chlorine, is significantly down due to weak demand. Chlorine suppliers have cut back production, and since caustic is produced with chlorine there is less caustic available.
At the same time, caustic is used in several industries, some of which have not been hurt too badly by the weak economy. Among them: soaps and detergents, brewing and dairy.
Nevertheless, analysts say demand for caustic is starting to drop. Alumina and pulp and paper suppliers, big users of the chemical, have announced cutbacks. So, analysts say, caustic could level off in the next year.
Eighteen of the 45 chemicals tracked by purchasingdata.com rose in price in the last year. Caustic soda took one of the biggest jumps.
Though the price has dipped somewhat in the last three months, liquid caustic soda has more than doubled in price since January 2008, going from $388 per ton to $788 per ton last month.
Supply is tight because production of its co-product, chlorine, is significantly down due to weak demand. Chlorine suppliers have cut back production, and since caustic is produced with chlorine there is less caustic available.
At the same time, caustic is used in several industries, some of which have not been hurt too badly by the weak economy. Among them: soaps and detergents, brewing and dairy.
Nevertheless, analysts say demand for caustic is starting to drop. Alumina and pulp and paper suppliers, big users of the chemical, have announced cutbacks. So, analysts say, caustic could level off in the next year.
source: www.purchasing.com
