Shintech became the latest US caustic soda producer to announce a price increase, informing customers it intended to raise prices by $70/dst, a source with knowledge of company operations said Tuesday.
Shintech initially announced the increase Friday for membrane grade caustic soda. It is effective immediately, or as contracts allow, the source said.
Earlier this month, other US producers announced increases of $55-$75/dst, depending on grade. The increases come amid rising spot market, which has seen domestic spot prices at levels not seen since 2012, according to S&P Global Platts data. Global capacity declines over the past year, and consolidation within the US in recent years has played a part in additional tightness and firming prices, sources have said.
Olin was the first to announce an increase, noting that it would raise caustic soda prices by $70/dst for the third quarter. Last week, Westlake Chemical, Occidental Chemical Corporation and Formosa Plastics USA all announced intentions to raise prices as well.
