CHEM-NET FACTSCHEMICAL MARKET INSIGHT AND FORESIGHT - ON A
SINGLE PAGE
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CAuSTIC SODADemand in the US market is still being described as
stable. Domestic pricing has mostly rolled over this month in spite
of the threat of tightening supply. Export pricing levels have
eased and spot barges pricing has also now come down slightly.
Although production will be eased back in line with reducing
chlorine demand there does not appear to have been any momentum for
the proposed price increase.
European producers had been targeting price increases for Q4,
based on a tightening supply scenario. However, the current market
balance and some competitive activity have resulted in an overall
reduction in price for Q4 contracts.
The markets in Asia mostly appear to be in balance and pricing
levels have been holding. Some producers are now coming back on
line after outages and there are concerns that this could put
downward pressure on pricing levels although weak chlorine demand
and poor margins could help to counter this. Domestic pricing in
China has come down due to weaker demand.
Short-Term Price Trends
Although spot pricing in the US has eased back slightly in the
last month, the easing back of production in the coming months as
chlorine demand declines should help to prevent much further
slippage on pricing although if demand eases there could yet be
some competitive situations developing.
European caustic soda pricing is now fixed for the quarter and
so only spot pricing can be adjusted. Chlorine demand is expected
to ease and so operating rates should come down and this should
prevent prices from slipping and in fact some producers have
already suggested that there is now limited availability and prices
should go up.
Caustic soda pricing levels in Asia are likely to remain fairly
stable as, although demand is weak, operating rates should be cut
back further due to weak demand and this will probably leave the
market in overall balance. Chinese domestic pricing however is
expected to reduce further in the winter months as demand
falls.
275300325350375400
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2013 Fe
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US Dollars per Ton
Product
Caustic SodaCaustic Soda
Location
West EuropeAsia
Definition
Spot Export FOBSpot Export Northeast Asia FOB
CAUSTIC SODA PRICES : 2 YEAR SPAN
Caustic Soda United States Export Spot, Gulf FOB
0
100
200
300
400
500
600
700
800
900
1000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
US Dollars per Ton
Product
Caustic SodaCaustic Soda
Location
West EuropeAsia
Definition
Spot Export FOBSpot Export Northeast Asia FOB
CAUSTIC SODA PRICES : 10 YEAR SPAN
Caustic Soda United States Export Spot, Gulf FOB
1 novEmBER 2013
0255075
100125150175200225250275300325
Nov
Dec
2012 Fe
bMa
rAp
rMa
y Jun Jul
Aug
Sep
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Nov
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2013 Fe
bMa
rAp
rMa
y Jun Jul
Aug
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US Dollars per Ton
In Conversion to US$ the 17% VAT Element in Chinese Rmb Prices
has been Excluded for Comparative Purposes
Product
ChlorineChlorine
Location
West EuropeChina
Definition
Liquid (chemical use) DDPEast China EXW
CHLORINE PRICES : 2 YEAR SPAN
Chlorine United States Domestic Liquid Spot DDP
Sep-2013 Oct-2013 Oct-2013 Short-TermUS DOMESTIC PRICES $/ST
$/ST $/ton Price TrendMonthly Contract, NE USA, Bulk 560-600
560-600 EXW 617-661 Regular Distributors, Gulf 535-560 535-560 FOB
590-617 Regular Spot Barge, Gulf 390-420 380-410 FOB 419-452 US
EXPORT PRICES $/ton $/tonSpot, Gulf 300-350 280-320 FOB WEST EUROPE
DOMESTIC PRICES /ton /ton $/tonMarket, RTC 500-530 480-500 DDP
655-682 WEST EUROPE EXPORT PRICES $/ton $/ton /tonSpot Export
320-340 280-320 FOB 205-235 ASIA PRICES $/ton $/ton $/tonSpot
Export, Northeast Asia 315-330 310-330 FOB Spot Export, China
325-330 330-340 FOB
Rmb/ton Rmb/ton $/tonMarket, East China 2233-2300 2167-2300 EXW
355-377
= diaphragm = dry basis Rmb/ton prices include VAT at 17%
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