NaOH suppliers seeking higher prices in Q2 contracts
Downtime at electrolysis plants expected to temporarily restrict caustic soda availability in Europe.
Caustic soda (NaOH) suppliers have announced price hikes of up to €50/t for 50% NaOH solution, calculated on a 100% concentration basis, in second quarter deliveries. However, since it became evident that demands for such an hefty increase would not be successful, they frequently aimed for lower increases.
Negotiations were still not concluded as this issue went to press, and it seems that the longer negotiations drag on, the more buyers stand to benefit. Paper mills report that the NaOH industry has been gradually scaling back its demands. Since January, some suppliers have been actively looking to sell volumes, so supply was very ample compared to a stable demand, it is said.
Manufacturers are trying hard to push through second quarter price hikes in order to compensate for price reductions that occurred over the last three quarters. They believe that they will be successful in charging higher prices in second quarter deliveries, as many electrolysis plants in Europe will close production for several weeks, resulting in reduced supply in April and May.
This article is an excerpt from EUWID's quarterly report on the market for consumables and auxiliary material in Western Europe. The EUWID Price Watch Western Europe Caustic Soda (NaOH) for the first quarter 2016 is published in EUWID Pulp and Paper no. 15/2016.
Our weekly newsletter's print and e-paper versions keep busy professionals up-to-date on the latest news from European pulp and paper markets.
Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.