Petrochemical producer PPG has increased US liquid caustic soda prices by $45/st for all grades, effective immediately or as contract allows, the Pittsburgh-based company said in a letter to its customers.
In the letter dated Tuesday, and obtained by Platts Wednesday, PPG said the price increase was because of strong supply and demand imbalance and because buying interest in the polyvinyl chloride chain remains depressed.
"Total production of liquid caustic soda in the month of January 2012 declined year-over-year and several maintenance outages will limit production in coming months," the company said.
PPG is the third caustic soda producer to announce price increases this month, following US petrochemical manufacturers Dow Chemical and Occidental Chemical Corp., which posted price hikes February 17 and Monday, respectively.
In December, US caustic soda producers also posted price increases ranging from $45-80/mt based on tight supply because of low operating rates. The prices hikes were only partially implemented, however, because of weak demand and high inventory levels.
US caustic soda export prices fell Tuesday by $5, week over week, to be assessed at $425-435/mt FOB USG.
