Alternative Pricing Index in the Caustic Soda Market

Caustic Soda is a key cost element in several industries such as Alumina, Paper and Pulp. Most caustic soda buyers have traditionally followed a long term fixed negotiated price for their contract. However, in the recent past, severe volatility and cost pressures faced by both buyers and sellers have forced the market players to look for alternate pricing formulae that can result in a win-win situation for both parties. This whitepaper describers the variou pricing structures followed in the market with a possible solution for an unbiased pricing structure.