Caustic soda prices seem to weaken further in Western Europe.
Manufacturers announced price hikes in the run up to negotiations on supply agreements for the third quarter, but were forced to lower their price increase demands not least because of brisk spot business. Players often report that prices are being carried forward from the second quarter. Prices that were on a relatively high level were even seen to be cut in quite a few instances.
Market participants are closely watching the potential restructuring of major market players as well the development of the joint venture between Solvay and Ineos, which needs to fulfil a set of requirements to gain approval from the European competition watchdog, and at the same time also on new capacity such as the AkzoNobel facility in Frankfurt and the newly constructed site of RusVinyl in Nizhny Novgorod, both of which are scheduled to go online this year.