NaOH producers quarrel with increasing costs and low mark-ups in 2016, say reduced supply supportive of higher prices.
Caustic soda (NaOH) suppliers are asking for price hikes in the ongoing negotiations on terms and conditions for deliveries in the first quarter/first half of 2017. Operators of electrolysis plants say they aim to eliminate low-priced orders from their books.
The price trend is pointing up, industry representatives are convinced. The contracts that are still open will be finalised in the coming days, said reports from several quarters. Explaining their price goals, suppliers cite higher costs, lower output in the winter months as well as forthcoming changes in the supplier landscape. Potential capacity cuts in the NaOH market are reportedly accelerated by the EU regulation which prohibits electrolysis plants without membrane technology from operating after 11 December 2017.
Buyers were generally informed at the turn of the year about suppliers' plans to increase NaoH prices by €20-60/t. EUWID respondents widely believe that suppliers' demands are excessive but add that higher prices are also being partly accepted.