Copyright 2013 Reed Business Information Limited. ICIS Pricing is a member of the Reed Elsevier plc group.

9th August 2013

Caustic Soda Liquid

(Asia Pacific)
Editor Jasmine Khoo, jasmine.khoo@icis.com

Click for Price History

FOB N.E. ASIA
CFR S.E. ASIA

USD/DMT
USD/DMT

n/c
n/c

SPOT PRICES
Price Range
315-320
360-375

n/c
n/c

Four weeks ago

320-340
380-390

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.

Meanwhile, a separate northeast Asian maker chose to focus

on fulfilling contractual volumes over selling spot parcels,
considering the weak demand situation and the weak prices.
Chinese domestic market
Domestic liquid caustic soda prices were mixed amid moderate
trading sentiment. Prices for liquid soda declined in some
regions but increased in other regions on the back of
production cuts amid low trading sentiment. Prices mostly
fluctuated slightly in Shandong amid moderate trading
sentiment.
Prices decreased in northwest China and market participants
were pessimistic about the outlook. Prices in Zhejiang edged
upwards as local chlor-alkali units were shut down. Prices in
Guangdong kept decreasing amid poor trading sentiment.
In northeast China, trading sentiment in Shandong was
moderate. Prices were largely stable as suppliers faced no
large inventory pressure and downstream producers made
normal purchases. Affected by the Eid ul-Fitr holiday, prices in
northwest China decreased and deals were limited amid low
trading sentiment.
Domestic prices of 32% liquid caustic soda in northern China
softened by yuan (CNY) 50/dmt on the low end of the
assessed price range to CNY1,350-1,950/dmt EXWH during
the week ended 8 August.
In eastern China, Jiangsu, sales pressure eased in response
to continual production cuts at local chlor-alkali units and
producers intended to raised their prices. Prices in Zhejiang
slightly increased because of tight supply caused by the
turnaround at local chlor-alkali units.
During the week ended 8 August, eastern Chinas liquid
caustic soda domestic prices firmed by CNY63/dmt at the high
end of the assessed price range to CNY1,938-2,094/dmt
EXWH.
Domestic prices of chlorine in China were assessed as stableto-soft during the week ended 8 August.
In Shandong, prices fell by CNY100/tonne on the high end of
the assessed price range to CNY50-200/tonne EXWH week on
week on 8 August, while prices in Jiangsu fell by
CNY100/tonne to CNY50-200/tonne EXWH during the same
time period.
Southeast Asia

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Caustic Soda Liquid (Asia Pacific)

Page 2 of 2
The southeast Asian region was subdued during the week as
most of the market participants were inactive because of the
Eid ul-Fitr festival, which weighed on buying interest. Malaysia
and Indonesia-based market players said most of the market
activity would only resume following the return of the market
participants after the Eid ul-Fitr holiday.
Furthermore, with some buyers expecting lower prices in the
near future due to increased supply from new start-ups in the
Middle East, buying ideas were also lowered, making it even
more difficult to conclude deals as the gap between buying and
selling indications widened.

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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