Caustic Soda Prices Continue to Plunge
Buyers in Purchasing's monthly survey continue to report that caustic soda prices are dropping fast due to declines in demand and oversupply. In fact, according to the latest survey, prices for rayon grade caustic soda are less than half of what they were at their peak in October and diaphragm grade is less than one-third its October price.
"Caustic soda prices are going down due to low demand and lower energy costs," says a caustic soda buyer at a major U.S. chemical firm. "Unless business picks up, price should stay down the rest of the year."
"We saw caustic soda prices drop $150/dry short ton this month," says the purchasing manager at a chemicals producer in Mississippi.
"Prices for caustic soda are dropping very quickly because of demand destruction," says the chemicals buyer at a Canadian manufacturer. "Prices will remain low until demand picks up or high cost North American production plants are closed."
This matches up with the information reported by ICISPricing.com, which says caustic soda producers report caustic soda demand continues to decline in major industrial sectors such as alumina and pulp-and-paper, but tight supply conditions in the co-product chlorine market have kept caustic production rates at moderate levels, oversupplying the market.
"As domestic [U.S.] spot prices continue to slide below contract price levels, sources said another reduction appears likely for July contract prices," ICISPricing reports.
In fact, 59% of buyers polled this month by Purchasing say they expect caustic soda prices to drop even further in the next 30 days.
In March, Purchasing.com reported that "over the past few months, demand for caustic has softened, causing market watchers to project a moderate downturn in its pricing over the next year."
"Caustic soda prices are going down due to low demand and lower energy costs," says a caustic soda buyer at a major U.S. chemical firm. "Unless business picks up, price should stay down the rest of the year."
"We saw caustic soda prices drop $150/dry short ton this month," says the purchasing manager at a chemicals producer in Mississippi.
"Prices for caustic soda are dropping very quickly because of demand destruction," says the chemicals buyer at a Canadian manufacturer. "Prices will remain low until demand picks up or high cost North American production plants are closed."
This matches up with the information reported by ICISPricing.com, which says caustic soda producers report caustic soda demand continues to decline in major industrial sectors such as alumina and pulp-and-paper, but tight supply conditions in the co-product chlorine market have kept caustic production rates at moderate levels, oversupplying the market.
"As domestic [U.S.] spot prices continue to slide below contract price levels, sources said another reduction appears likely for July contract prices," ICISPricing reports.
In fact, 59% of buyers polled this month by Purchasing say they expect caustic soda prices to drop even further in the next 30 days.
In March, Purchasing.com reported that "over the past few months, demand for caustic has softened, causing market watchers to project a moderate downturn in its pricing over the next year."
quoted from: Purchasing.com
