AMERICAS – Caustic soda prices remain steady
Caustic soda prices in Latin America are steady on healthy demand and adequate supply, in line with business in other global regions, sources said during the week ended 29 July.
Participants in South America projected stable market dynamics through the end of the year, and noted no concerns over caustic soda supply in the near future.
Business is good in key demand sectors, including alumina, wood pulp/paper and soaps/detergents, according to participants.
Sources said demand for South American wood pulp is strong. Pulp is commanding healthy prices from Asia, with particularly robust volumes being shipped into China, the sources added.
However, players questioned the impact that fresh wood pulp production facilities expected to come on stream in Latin America would have on global supply and on prices.
US caustic soda spot export prices are pegged at $410-450/ dry metric tonne (dmt) (€287-315/dmt) FOB USG, unchanged from the previous week. June US caustic soda contracts are at $440-510/ dry short ton (dst), $30/dst higher from May at the top end of the range.
In Argentina, domestic caustic soda values are steady at $530-600/dmt ex-tank at the end of July. Prices increased by $20/dmt hike at the low end of the range the first week of this month as a result of gas rationing because of the cold weather.
In Brazil, domestic caustic soda prices remain unchanged at $520-620/dmt ex-tank.
Caustic soda demand for soaps and detergents is projected to increase in the third quarter on rising temperatures, after a decline in business because of the cold spell in Brazil and Argentina.
In Mexico, domestic prices for caustic soda are steady at $640-700/dmt ex-tank, amid balanced fundamentals. Participants gauged caustic soda imports from the US Gulf at $470-510/dmt CFR.
In Colombia, prices for caustic soda from the US Gulf are pegged at $470-510/dmt CFR.
In the Pacific coast of South America, participants said caustic soda imports from Peru stood at $480-520/dmt CFR. Offers to the Colombia Pacific coast were at the bottom end of the range, and to Brazil at the top end. Offers into Ecuador were at $500/dmt CFR. Sources noted that political uncertainty in Peru and Ecuador is hurting business in the two countries.
SHIPPING – 7,000 tonnes Rotterdam/NYC, 1-10 August
The following caustic soda fixtures were noted:
7,000 tonnes Caustic soda solution, Rotterdam/NYC, 1-10 August, $31 pmt
7,500 tonnes Caustic, UK/USEC, 25-30 July, “Songa Falcon,” $58 pmt, CNR
7,500 tonnes Caustic Soda, UK/USEC, 2H July, “Nordisle,” RNR Tricon
OTHER REGIONS – Spot prices lower in Europe and Asia
In Europe, caustic soda spot prices fell $20/dmt in the Mediterranean to $330-350/dmt because of weak demand and increased supply. The approach of traditional August holiday closures and declining macroeconomic conditions dampened demand, while caustic soda plants in the Black Sea raised operating rates. Spot prices in NWE fell by $20/dmt at the top end of the range to $350-370/dmt because of declining demand.
In Asia, caustic soda export prices fell by $10-30/dmt to $370-400/dmt FOB NE Asia and $410-440/dmt CFR SE Asia, driven by poor market sentiment. Prices have been declining since the middle of June amid expectations of additional capacities in northeast Asia, most of them in China, that are expected to come on stream in the second half of 2011
NYMEX – WTI closed at $95.70/bbl on 29 July
NYMEX WTI crude futures closed at $95.70/bbl on 29 July, down by $1.74/bbl for the day, and down from $99.87/bbl on 22 July. US crude futures finished down, despite dollar weakness versus the Swiss franc. The decline was in response to released US economic data showing anaemic growth during the first half of the year and the paralysis in Washington with regards to the US debt ceiling. Posting the first weekly loss in four tries, WTI finished down 4.2%.
NYMEX natural gas futures closed at $4.145/MMBtu on 29 July, down from $4.399/MMBtu on 22 July.
| NYMEX Closing | 8 Jul | 15 Jul | 22 Jul | 29 Jul |
| Crude Oil Front Month (US$/bbl) | 96.20 | 97.24 | 99.87 | 95.70 |
| Natural Gas Front Month (US$/MMBtu) | 4.205 | 4.546 | 4.399 | 4.145 |
($1 = €0.70)
This week on ICIS ( www.icis.com ):
29/07/2011 19:30 US PVC players clash on whether July contracts stay flat or drop
28/07/2011 22:20 Dow Chemical confirms closure of its VCM unit in Louisiana
25/07/2011 16:50 US June chlor-alkali operating rates rise month on month to 92%
26/07/2011 11:09 Japan’s Shin Dai-Ichi to shut Tokuyama PVC plant in August
26/07/2011 11:03 China’s Hubei Xingrui Chemical to build new caustic soda plant
