let's get back to fundamentals, page-27

Bacci

Yes the best is Australia and the very best SA. Thats why Amcor is good and the upgrade good as well.

I dont believe they export to make a market there its just that they are clever in that you cannot enter and exit markets easily as the user wants continuity of supply. It's my understanding that they play both markets so that they can increase and decrease sales to match what they can sell here. They also need to import to keep those lines open as well. I just think its a balancing process for them.

If they can sell all here but keep the export market tickling over it suits them. So long as they keep an opposition from growing too large and using low priced imports from attacking the market here too much. I understand that they have been able to do that and other imports are not large. Given their manufacture they always have an advantage in the supply chain as they dont have supply time lags they can fill from in house. Its a great model if you are a monopoly - The market is that you are a price taker as imports are the price maker. You however dont have to have buffer stocks and lead times. You know you have locked in the transport cost as part of your profit. You can parallel import to make a market and that product keeps you competitive as any other importer has to have overheads that you have already funded. The players (users) in this market are probably either very big or very small the small will be happy with shopping around but the big players probably need secure supply so they will look to you to supply that.

What I dont get is why the margin has plunged in Soda ash - I understand that at 80c its a winner but in reality even Trona pricing has been moving up. Something doesn't add up and the Bi carb plant should be a winner its large and in an area that fits very well - I just dont get the problem.

On hold small position to be on register.