Caustic Scarcity May Push Up Prices

The scarcity of caustic soda is expected to push up prices to $240/ton fob in the Gulf Coast in the fourth quarter, industry sources say.

All major North American chlor-alkali producers have announced a $30/ton price increase for U.S. customers, effective immediately on the spot market and as contracts permit. In Canada, the increase is C$50/m.t. While previous price increases this year were not fully implemented, many familiar with the market say this rise will have far greater success.

The watershed event occurred in late August as Dow joined OxyChem in announcing the increase. Dow is the largest producer of caustic soda and chlorine in North America; OxyChem is …