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Inorganics
BENEFITING FROM the economic recovery and resulting improved demand from the pulp and paper industry, the North American sodium chlorate market is tight. The market is seeing a second round of price increases following upward pricing movements earlier this year. However, in line with most other chemical products, high energy costs are putting pressure on margins and may lead to temporary plant idlings.
Earlier this month, Nexen Chemicals, a subsidiary of Nexen Inc., Eka Chemicals, a business unit of Akzo Nobel, and Erco Worldwide, a division of Superior Plus Inc., all announced price increases for sodium chlorate. Nexen increased its sodium chlorate price by $25 per ton (C$35 per ton) for product delivered in North America. Eka Chemicals increased prices by $25 per short ton (C$40 per metric ton), and Erco Worldwide increased prices by $30 per short ton. In early April, Kerr-McGee Chemical LLC raised its prices for sodium chlorate by $40 per Ion. Together, these increases bring benchmark pricing for sodium chlorate to the $475 to $490 range, which is higher than the recent historical average of $450 per ton. Producers report that customers have generally accepted the increases.
"The sodium chlorate demand in North America has continued to strengthen since last fall," says Ed Bechberger, vice president,...