Caustic Soda prices in Germany have continued to follow an upward trajectory since early-January. Export enquires for Caustic Soda from the region have picked up actively from Asia as the production in China is likely to narrow following the lunar holidays and winter Olympics. Whereas series of planned turnarounds in US in Q1 has stressed its players over their inventory levels which has also made several traders to fetch upcoming requirements from Europe.

In December, Caustic Soda pricing eased significantly owing to the increment in supply in the market. Supply pressure upon Caustic Soda largely eased as plants which earlier were temporarily shut, finally began production in Q4. Vinnolit, a mega producer of Caustic Soda and PVC in Gendorf, Germany upliftment of force majeure which further assisted the supply market. Besides, several traders were also heard allowing consistent negotiations in order to idle their inventories before the year ends. 

With gradual increment in enquiries of Caustic Soda since mid-January, its prices have again stared to rebound. Caustic Soda flakes FOB prices have climbed by nearly 12% in the whole of January. Supply of Caustic Soda in Europe have finally reached normalcy after the resumption of several plant operations in Q4.

As per ChemAnalyst, “Caustic Soda prices are expected to remain firm as the demand for the product is likely to continue gaining pace in Europe as industries have begun operating at full face amidst consistent pickup in market activities. Demand for Caustic Soda from detergent segment is expected to drive its prices in the coming timeframe. However, as the production halts in China will gradually ease by March, buyers are expected to return to the Chinese market due to relatively lower prices. The consumer shift in the export preference is likely to shake the momentum of Caustic Soda prices across Europe.”