Russia's caustic soda buyers mull cheaper import alternatives
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One of Russia's leading consumers of liquid caustic soda plans to start importing cheaper product from other European countries.
The company was planning to start importing some 3,000 tonnes/month of caustic soda from the third quarter of 2009. Weakening European caustic soda prices made imports "extremely attractive" for Russian buyers despite shipping costs and import duty, currently levied at 15%.
Domestic suppliers were also to blame for fixing caustic soda prices at $400-$500/tonne (€288-360/tonne), "the highest level in the world", according to the source. Domestic prices were high despite an apparent oversupply in Russia.
One Russian supplier voiced scepticism over the import plans, however, saying the country currently lacked sufficient infrastructure and regulatory framework to allow sizeable imports.
Since earlier this year, Russia's caustic soda manufacturers have been cutting production volumes in an apparent bid to support domestic prices.
In January-March 2009, Russia produced some 260,000 tonnes of caustic soda, or 23% down year on year, according to the Russian Industry and Trade Ministry's data.
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