Documente Academic
Documente Profesional
Documente Cultură
USD/DMT
USD/DMT
n/c
n/c
SPOT PRICES
Price Range
315-320
360-375
n/c
n/c
US CTS/LB
14.29-14.51
16.33-17.01
NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and
click on methodology.
Asia liquid caustic soda unchanged on subdued trade
Asia liquid caustic soda prices held steady during the week
ended 9 August amid limited fixtures as a persistent gap in
buying and selling indications hampered trading activity.
Furthermore, with weak demand from downstream alumina
and the pulp and paper industries, spot appetite continued to
be curtailed, with buyers purchasing only on a need-to basis in
small volumes to prevent inventories from building up.
Some buyers were also expecting greater supply to come from
the Middle East following new start-ups in the third quarter,
which explained their weak buying interest, though no
significant influx of Middle Eastern-origin cargoes has been
observed in Asia so far.
As a result, trading activity remained subdued in both the
southeast and northeast Asian regions with most market
players adopting a wait-and-see stance to observe the market
further. Some sellers added that instead of reducing prices to
stimulate spot buying interest and wind up incurring losses,
they would rather remain by the sidelines and focus on fulfilling
contracts.
The ongoing Eid ul-Fitr holiday in some parts of southeast Asia
also weighed on buying interest.
However, moving ahead, market participants anticipate
improved demand when market players from India return from
with the end of the monsoon season to replenish their
dwindled inventories. Similarly, buyers who had been holding
off procuring fresh cargoes due to the Eid ul-Fitr holiday are
expected to start buying again in the near future as well.
Northeast Asia
In northeast Asia, fixtures were still very limited as buyers and
sellers could not compromise on a common price for spot
cargoes, especially when demand was weak and most market
players were uncertain about the near term price outlook for
caustic soda.
A buyer was in the talks with a northeast Asian producer,
though the negotiation did not translate into any deals as the
seller was not able to accept the bid at $315/dmt FOB NE
Asia.
A separate northeast Asian producer was offering late August
and September-lifting parcels at $330/dmt FOB NE Asia during
the week, but has not managed to sell any cargoes as the
buyers bids were too low to be workable for his margins.
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A northeast Asian trader, who did not disclose its offer, said it
received a bid of $290/dmt FOB NE Asia from a southeast
Asian buyer. The trader said this price was too low to be
workable for its margins.
In the meantime, the bulk of the regional sellers were still
targeting prices of $320-330/dmt FOB NE Asia, which translate
into $370-390/dmt CFR SE Asia, considering the freight costs
from northeast Asia to southeast Asia.
($1 = CNY6.12)
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