Guangzhou Taixin Auto parts Trading Co., Ltd. , https://www.taixinspareparts.com
Under normal circumstances, big buyers buy goods for six months at a fixed price, but some buyers start to use quarterly contract prices, while other buyers think it is more favorable to change to a floating contract price. Rapid price changes make buyers unwilling to accept long-term fixed prices. In June 2009, the spot price fell by half, and the caustic soda buyer set the price of caustic soda supplied in the first half of the year at 390 US dollars per dry ton (261 euros per dry ton, northeast Asia offshore).
Asian caustic soda producers say that most buyers seem to be exploring other possible alternatives in the first half of 2010. At present, large caustic soda producers in Asia include the Shanghai Chlor-Alkali Company in mainland China, Tosoh Corporation in Japan, Hanhuo Chemical in Korea, and Formosa Plastics in Taiwan.
Asian caustic soda market may consider changing the current long-term fixed-contract pricing system
Market participants recently stated that caustic soda buyers in Asia wanted to change the supply of long-term contract goods in 2010 and changed from the current two-year price fixing system to a supply contract that is more adaptable to changing market conditions. This week, major buyers such as aluminum smelters have started negotiations with local caustic soda producers for long-term contract prices for the first half of 2010.