Supply of caustic soda prices have rocketed in Asia

Japan earthquake caused by unstable supply of electricity, the Asian caustic soda market is tight supply situation. As downstream demand strong, caustic soda prices are substantially higher. According to ICIS data,CAS 603-33-8, the recent Asian spot prices of caustic soda rose 440 to $ 455 (t price, the same, FOB, Northeast Asia), and now there are only the beginning of the price of 290 to 310 dollars, or nearly 50%; with 210 last year $ 220 compared to the price, but also more than doubled.

By March 11 a major earthquake in Japan about 20% of caustic soda production capacity forced to close. Asahi Chemical Company in the earthquake off the Chiba 20 million tons / year caustic soda plant by the end of March has been restarted, the current capacity utilization rate of 70%. In addition, Asahi Chemical Company, Kashima set at 35 million tons / year caustic soda plant has restarted in mid-April, but can only maintain the current operating rate of 20% to 30% of the low. Market participants believe that these devices start to return to the ideal level is very difficult,Triphenylbismuth price, because the current electricity supply in eastern Japan remained unstable. Expected to enter the summer peak, the Japanese government may also take measures to limit power to ensure that residential electricity.

Electricity is critical for the production of caustic soda,Triphenyl Bismuth, limited by the power factor, the current producer of caustic soda in Japan only for the domestic markets, there is no spare cash for export. In Korea, the manufacturer in addition to contracts for the supply of goods in Australia and the United States, other products can only give priority to the domestic market. China, the world’s largest producer of caustic soda, the current annual production capacity of about 3,000 tons, accounting for 38% of global annual total production capacity. China’s current rate of caustic soda plant starts roughly 70% to 80%. Some analysts said the Chinese government’s determination to control prices may impact on the PVC industry, leading to reduced supply of caustic soda. Meanwhile, the Chinese government’s determination to energy saving may make caustic soda manufacturers to achieve emission reduction targets and was forced to cut production, market supply may further aggravate tensions. Source:

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