| About Us - Registration/Login - Contact Us - Message Board - Glossary - Features - B-School - Legal - Biz-End - Orange-GTM - WAP |
| STOCK MARKETS | COMPANIES | SECTORS | ECONOMY | MUTUAL FUNDS | ONLINE TRADING | INVESTOR POINTS |
| |
|
| 'This site is a must read for investors ..' Forbes magazine | |
| India Infoline Sector Reports | Wed, 18-Feb-2004 17:12:05 IST (GMT+5:30) | |
| Soda ash | ||
|
 |
Demand Dynamics Detergents continue to form the major portion of the total domestic demand followed by glass and chemicals (See table below). Domestic Consumption Pattern
Demand for soda ash is mainly affected by decrease in demand from glass industry all over the world. This was on account of fall in demand for container glass. Bottles made of container glass are being replaced with PET (Polyethylene Terephthalate) bottles, this has affected the demand for soda ash. Demand is dependent on price to some extent because of the following reasons: Soda ash is a commodity product, hence competition is mainly on the basis of price. Soda ash is a major raw material for its key end-user sectors, as a result, users attempt to reduce their expenses on soda ash either through low usage - by increasing process efficiencies or by paying lower prices through long-term contracts and price negotiations. Demand for soda ash also suffers from a substitution effect. To some extent substitution by caustic soda takes place based on economic considerations such as availability and costs. Problems of transportation too affects offtake of soda ash from the producers. Transportation costs, especially to the eastern and southern regions ranges between Rs1500-2000 per ton. It is because of this reason that users located farther from the west coast, especially in the eastern region find it cheaper to import soda ash due to reduction in customs duty. Import duty has come down from 85% in FY94 to 35% in FY98.
|
|
|
| 5PAISA | PREMIUM CONTENT | ADVERTISE WITH US | FEEDBACK | DISCLAIMER | PRIVACY POLICY | JOBS | FAQS | SITE MAP | HELP |
