Formosa Plastics USA said Friday it would raise caustic soda prices by $85/dry st, becoming the latest US seller to increase prices, according to a letter to customers obtained by S&P Global Platts.
The increase will go in immediately, or as contract terms permit, the letter said.
Formosa also told customers it is maintaining its 100% order allocation program, as well as the required 15-day lead time on rail car orders and 30-day lead on barge orders.
Earlier this week, Occidental Chemical said it would raise prices by $60/dry st on all grades of liquid caustic soda, and Westlake Chemical said it would increase the price of diaphragm-grade liquid caustic soda by $65/dry st, with premium grades increasing by $85/dry st, according to letters to customers. Olin also has announced plans to increase prices by $60/dry st, multiple market sources said.
The increases were expected, with sources pointing to strong demand and continued tightness.
US spot export caustic soda prices were assessed Tuesday at $400-$410/mt FOB USG, while domestic pricing also was stable at $390-$400/DST FOB plant.
