PPG announces caustic soda price increase
PITTSBURGH, Nov. 28, 2011 – PPG Industries (NYSE:PPG) today announced that it would increase prices for all grades of off-schedule liquid caustic soda in the United States by USD$45 per short ton, anhydrous basis, and in Canada by CAN$50 per metric ton, anhydrous basis, not to exceed list prices. The price increase is effective immediately, or as permissible by contract.
“This price increase is necessitated due to continued reduction in chlorine demand, driven by typical seasonal weakness and further, more recent, reductions in chlorine pricing for export opportunities along with efforts by many customers to manage inventories of chlorinated derivative finished goods,” said Michael H. McGarry, PPG senior vice president, Commodity Chemicals. “Global chlor-alkali operating rates continue to decline, as well as global operating rates for polyvinyl chloride (PVC) and other chlorine derivatives.”
McGarry said that the effective U.S. chlor-alkali operating rate for October was 78 percent of capacity, down from 87 percent in August, and that rates in Europe experienced similar declines, dropping from 83 percent in July to 74 percent of capacity in October. PVC operating rates across Asia and in Europe have declined significantly in the past 45 days, he said. PPG’s North American chlor-alkali operating rates have declined from 91 percent in September to a percentage around the mid to upper 70s currently.
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