Formosa Plastics Corp USA will raise its liquid caustic soda prices by $45/dry st effective immediately or as contract terms allow, the company said in a notice to its customers obtained by Platts Wednesday.
Formosa also told customers in the notice dated Tuesday that it is maintaining its 100% order allocation program, as well as the required seven-day lead time on rail car orders and 30-day lead time on barge orders.
Formosa is the latest caustic soda producer to announce a price increase.
The increase notification has been expected by market participants, as four major producers have also announced increases for the upcoming month — Olin started the latest bout of caustic soda increases on November 21 at $40/dst for its US customers and at C$45 for its customers in Canada.
Axiall on Monday said it was raising its prices at $45/dst for its US customers and at C$50 for its customers in Canada. Dow Chemical was the third caustic soda producer to announce increases for its US diaphragm and membrane grade caustic soda 50% solution prices by $50/dry st starting immediately.
Occidental Chemical (OxyChem) has increased its US liquid caustic soda prices by $45/dst, effective immediately for spot customers or as contract terms allow for contract customers, market sources said Tuesday.
In markets, export US caustic soda prices were steady for the week, assessed Tuesday at $305-315/mt FOB USG, amid thin trade as producers were heard pushing for domestic price increases following up substantial de-stocking in October and November.
Sources pegged domestic trading levels at $340-350/dst ex-plant,unchanged for the week, while import levels were heard at $410/mt CFR East Coast.
– Platts.com
