OxyChem, the chemicals division of Occidental Petroleum, this week announced a second 2018 price increase for caustic soda in North America, according to a letter to customers obtained by S&P Global Platts.
The letter said Oxy would increase off-schedule prices of both diaphragm-grade and membrane-grade caustic soda by $40/dst in the US and $45/dmt in Canada, effective immediately for spot customers and as terms permit for those with contracts.
Olin also announced caustic soda price increases this week of $40/dst in the US and C$50/dmt in Canada. Both companies informed customers via letters dated Monday.
Olin, OxyChem, Shintech and Formosa Plastics all announced $85/dst price increases for caustic soda in the US in February, while Westlake Chemical announced a $40/dst increase. Westlake followed that up with an increase of $50/dst, pushing its total increase so far in 2018 to $90/dst.
And all five producers announced US price increases ranging from $70/dst to $115/dst in November, depending on the grade.
Westlake CEO Albert Chao told a conference earlier in May the company does not see any cap on caustic soda prices because demand is growing, but US capacity is not. Chlor-alkali producers have been running plants at high rates to capture strong caustic soda margins since early 2016.
