Market and product
Formosa declares FM on caustic soda after US plant glitch
The plant experienced an unexpected shutdown after coming out of its annual maintenance turnaround, the company said in its letter to customers.
The plant is one of the country’s largest with a capacity of 1m tonne/year, according to ICIS plants and projects.
The problem has been found and repaired and the plant is back in production, though “not quite to the rate we want it to be”, a company source said.
The company is filling orders “as best we can” from existing inventory. But it asks customers to try to restrict shipment schedules to after 11 November. It also asked customers to allow a 30-day lead time for barge delivery, seven days for rail car and truck orders until the plant is back to full operation.
The US caustic soda market has worked with a sentiment of long supply and falling prices through the summer.
Producers are currently seeking contract price increases of $30-45/dry short ton (dst) ($33-50/dry metric tonne (dmt)) for November.
Other major US caustic soda producers include Axiall, Dow Chemical, Olin, OxyChem, Shintech and Westlake Chemical.
