FMC Soda Ash Energy Surcharge for Third Quarter 2008
Effective July 1, 2008, the energy surcharge for the 3rd quarter of 2008 will be $10.50/ton for both bulk and packaged soda ash and will appear as a separate line item on the invoice.
Future quarterly surcharge adjustments will continue to be based on a rolling three month forward average ($13.014 MMBTU for 3rd Quarter 2008) of the NYMEX Henry Hub Index as of the 15th day of the month preceding each calendar quarter. If the 15th day is a non-trading day, the close ("Most Recent Settle") on the next trading day will be used for the calculation. The table below shows the relationship between the natural gas price and the soda ash surcharge:
|
NYMEX Henry Hub ( $/MMBTU ) |
Soda Ash Energy Surcharge ( $/ton ) |
|
$6.00 - $6.99 |
No surcharge |
|
$7.00 - $7.99 |
$1.50 |
|
$8.00 - $8.99 |
$3.00 |
|
$9.00 - $9.99 |
$4.50 |
| $10.00 - $10.99 |
$6.00 |
| $11.00 - $11.99 |
$7.50 |
| $12.00 - $12.99 |
$9.00 |
| $13.00 - $13.99 |
$10.50 |
Soda ash margins are insufficient to absorb the risks posed by volatile natural gas costs; an energy surcharge provides a transparent means to share this risk with consumers. FMC will be integrating this surcharge into any future long-term contracts.
FMC appreciates your business and trusts you understand the necessity of this action. Please contact your FMC account manager with any questions.