Caustic soda prices hit high on supply snags

The force majeure from the huge Dow Chemical caustic soda plant in Freeport, Texas, and subsequent reduction in shipments has triggered price inflation, pushing market prices above $600/ton for all grades. Purchasingdata.com's latest buyer survey finds diaphragm grade caustic soda selling for an average $601/ton this month, up from $488 in May, while rayon grade caustic soda is averaging $621/ton, up from $534. Dow Chemical's production and shipping problems at Freeport resulted in a force majeure declaration on June 6, tightening market supply and adding more upward pressure on already soaring prices. Dow put North American and some Latin American customers sourced from the Gulf Coast plant on 90% allocation for a minimum time of three months. Caustic soda has been in tight supply because of reduced demand for chlorine for... [read full story]