US petrochemical producer Dow Chemical Tuesday said it continues the force majeure on caustic soda membrane grade 50% declared last week out of its Freeport, Texas, facility.
"In spite of the rumors that were heard in the market Dow continues its force majeure for caustic soda as announced on October 4 with an allocation of 7 to 10 days," company spokeswoman Amy Ahlich said.
Ahlich said the confusion likely stemmed from a letter sent by Dow to one of its customers by mistake.
Early Tuesday some market participants said they believed the force majeure had been lifted, but Platts' request for confirmation from the company wasn't received until after the close of the market later in the day.
Dow initially declared force majeure at its 500,000 mt/year Freeport plant October 4, citing circumstances beyond its control in a letter to customers.
The declaration stemmed from a mechanical malfunction that caused a plant shutdown.
The US caustic soda market remains bullish as supply tightness continued as result of lower operating rates from chlorine producers, sources said.
Meanwhile, US manufacturers sought a $65/mt price increase for October as demand from the pulp and paper and automotive sectors was reported as strong.
The 3- to 30-day forward assessesment was at $435/mt FOB USG.
