Domestic caustic soda prices in Brazil dropped by more than one-third on average due to pressure from lower priced imports, buyers and sellers said on Monday. Local prices fell sharply by an average of 36% to $300-400/dmt (dry metric tonne) (€213-284/dmt) ex-tank for June from $500-600/dmt for the month prior, according to global chemical market intelligence service ICIS pricing. Brazilian caustic soda producers have faced sluggish demand from the country’s pulp-and-paper and alumina industries - both large industrial consumers of caustic soda - but the strongest downward price pressure comes from competition with low-priced imports from the US and Asia, producers said. Import prices for caustic soda have fallen an average of 73% to $150-200/dmt CFR (cost and freight) last week from $630-680/dmt in late April, according to ICIS pricing. Producers said they did not expect a turnaround in the caustic soda market very soon, but could see profit margins for co-product chlorine increase as chlor-alkali production rates decrease.