manufacturer and distributor of caustic soda, sodium hypochlorite, hydrochloric acid and market information
February 5, 2012
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The Advantage Newsletter — 7/2/2002

The Advantage

MARKET ANALYSIS UPDATE JULY 2, 2002



SODIUM HYPOCHLORITE (BLEACH) Effective April 1st, producers of chlorine announced a $50 per ton increase followed by an additional $125-$150 per ton increase slated for July 1st. This combined increase equates to slightly more than $0.17 per gallon in sodium hypochlorite raw material cost when coupled with the July 1st caustic soda increase of $50 per dry short ton. As of July 1st, most Midwest producers announced a bleach increase of $0.17 per gallon. LIQUID CAUSTIC SODA 50% First quarter pricing for contract caustic soda seemed to have bottomed out around $40-$60 per dry short ton f.o.b. the gulf. As inventories shifted from the producers tanks to distribution and consumer tanks, as planned and unplanned outages took effect, and as a general pickup in demand occurred, chlor-alkali producers have taken the opportunity to raise pricing by $50 per dry short ton effective immediately or as contracts permit. This July increase seems to be heavily supported by all producers. Rumors persist in the marketplace of an additional increase on the horizon. HYDROCHLORIC ACID As chlorine producers that have chlorine burners to make hydrochloric acid begin to throttle back their burners, in order to free up chlorine for the merchant market as well as their pipeline accounts, hydrochloric acid may see the effects of the rising chlorine market. As of June, some producers, as well as large distributors of hydrochloric acid, have announced a $10 per ton increase effective immediately or as contracts permit. OVERALL MARKET CONDITIONS March operating rates according to the Chlorine Institute show 89% capacity. We fully anticipate April and May’s operating rates to increase as well. Plant Shutdowns since shortage of 2000 Company / Location / DST Caustic Capacity Atochem / Portland,Oregon / 246,000 Pioneer / Tacoma,Wa / 250,000 Holtrachem / Acme,NC/Orrington,Maine /148,000 LaRoche /Grammercy,La / 218,000 Oxy /Deer Park, Tx / 422,000 Further capacities will be taken out of the market by Dow in Louisiana in the 3rd quarter (estimated 300,000 dst)

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