Soda Ash Producers Raise Prices

FMC, Searles Valley Minerals, Solvay Chemicals and OCI Chemical, have separately announced an US$ 7/tonne increase in the price of soda ash. The rise is in addition to the US$ 15/tonne increase announced earlier this year. The price of soda ash will increase to US$ 98-107/tonne fob, as a result. Most of the increases will not come into effect until January 2005. The closure of Solvay's 900,000 tonnes/year plant at Parachute, Colorado, has restricted supply at a time of strong demand. Operating rates currently exceed 95% and there is no excess inventory, while high energy and shipping costs are squeezing margins.