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Caustic soda spot price hits three-year high on tightness in 2016


Caustic soda FOB Rotterdam spot prices have hit a three-year high on tightness in the market, following news that French chlorvinyls producer KemOne will shut its Lavera, France, chlorine/caustic soda plant this month, sources said.
Prices were assessed Tuesday at $380/mt FOB Rotterdam, a high not seen since July 23, 2013.
The KemOne plant at Lavera is the source of 25% of French chlorine production, or 3% of European production, according to the company website.
The European market was expected to remain tight on a fundamental shortage of production on capacity closures ahead of a December 2017 legislation requirement.