caustic soda. russia - mrc · producers mean enterprises directly engaged in caustic soda...

May 28, 2007 1 © MRC

■ London ■ Moscow ■ Kiev www.mrcplast.com

MRC (Market Report Company) co-operates with the biggest petrochemical companies of the world. Our task is to provide professional reviews of the markets of polymers, pigments and packaging in Eastern Europe and the CIS countries.

Moscow: +7 495 543 91 94

General questions:

[email protected]

Kyiv: +38 044 240 82 35 Vyacheslav Mitskevich [email protected]

www.mrcplast.ru Olga Savina [email protected]

Caustic Soda. Russia May 28, 2007

Monthly Report: May Editor: Olga Shelepova ([email protected])

The Report has been made up on the basis of statistical information provided by the statistical institutions of the Russian Federation and may contain certain inaccuracies connected with the

incorrect distribution of data by types of polymers based on the Foreign Trade Codes in the customs statistics of the Federal Customs Service or on codes of the Federal Service of State Statistics of the Russian Federation on production statistics. The Quarterly Report contains data corrected on the basis of MRC methods. The most detailed market information by consumers, producers and

their brands can be found in our Annual Reports. The information presented in this Report is intended for the exclusive use of MRC clients. The information presented herein is strictly the opinion of MRC and is based on data collected within the public sector and on data prepared by the specialists of MRC. MRC furnishes no security or warranty and assumes no liability as to consequences of

decisions taken in regard to the information presented in this Report.

Consumption, 000 DMT

0

25

50

75

100

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Production, 000 DMT

0

30

60

90

120


Export, 000 DMT

0

6

12

18

24


Import, 000 DMT

0

1

2

3

4


Export to Production,%

0%

5%

10%

15%

20%

25%


Import to Consumption,%

0%

1%

2%

3%

4%

5%


Solid Caustic Soda Export Price, DAF, border of Russia, USD/MT

340

355

370

385

400


Liquid Caustic Soda Export Price, DAF, border of Russia, USD/MT

120

130

140

150

160


* converted into 100% of the main substance (in dry metric tons)

General Indexes. Caustic Soda*

Monthly Report. Russia. Caustic Soda

May 28, 2007 2 © MRC

Apparent consumption of Caustic Soda*, 000 DMT

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth1.% From the

beginning of the year2

Growth3.%

2002 88.41 82.25 86.70 84.58 90.46 81.95 77.96 82.07 86.56 89.89 83.50 87.88 - 1 022.21 -

2003 81.91 73.44 88.63 76.34 81.35 79.75 76.96 67.93 75.48 75.72 78.38 86.01 -10% 941.90 -6%

2004 91.62 76.45 85.89 81.74 92.28 83.82 86.26 84.85 83.96 89.21 86.28 93.41 7% 1 035.77 5%

2005 92.88 77.87 90.86 83.40 83.84 80.50 85.12 88.31 94.18 86.42 88.82 97.53 2% 1 049.73 3%

2006 96.28 84.79 91.75 94.44 88.38 85.17 85.15 86.79 97.06 89.81 93.31 97.35 13% 1 090.28 6%

2007 98.89 78.99 93.00 92.10 - - - - - - - - -2% 362.98 -1%

Production of Caustic Soda*, 000 DMT


beginning ofthe year2

Growth3.%

2002 100.00 90.90 95.60 93.80 98.50 91.50 87.50 92.80 96.60 101.00 97.60 98.80 - 1 144.60 -

2003 93.30 83.70 97.30 84.40 91.30 89.60 88.00 79.30 87.50 90.40 90.40 99.50 -10% 1 074.70 -6%

2004 97.20 86.90 95.70 92.40 101.00 92.80 97.20 98.80 99.50 101.00 104.00 109.00 9% 1 175.50 4%

2005 103.00 94.60 104.00 101.00 101.00 97.80 103.00 104.00 105.00 103.00 104.00 110.00 9% 1 230.40 8%

2006 106.00 99.30 104.00 106.00 104.00 95.70 102.00 101.00 109.00 109.10 112.00 117.30 5% 1 265.40 3%

2007 115.60 101.30 113.40 108.00 - - - - - - - - 2% 438.30 6%

Export of Caustic Soda*, 000 DMT



Growth3.%

2002 11.62 8.71 9.05 9.29 8.15 9.61 9.63 10.86 10.33 11.33 14.31 11.20 - 124.09 -

2003 11.42 10.26 8.84 8.14 10.09 9.96 11.26 11.50 12.41 14.80 12.49 13.83 -12% 135.00 0%

2004 5.98 11.76 12.07 12.63 11.56 11.45 13.80 16.10 18.00 13.76 20.25 18.68 55% 166.04 10%

2005 12.02 18.50 15.77 19.25 19.69 19.77 18.83 16.18 11.53 17.24 16.90 13.78 52% 199.46 54%

2006 11.46 15.06 14.22 13.47 17.10 13.31 19.13 17.95 13.72 21.42 20.48 21.77 -30% 199.09 -17%

2007 18.25 22.61 22.36 17.47 - - - - - - - - 30% 80.69 49%

Import of Caustic Soda*, 000 DMT



Growth3.%

2002 0.03 0.06 0.15 0.07 0.11 0.06 0.09 0.13 0.29 0.21 0.20 0.28 - 1.68 -

2003 0.03 0.00 0.16 0.09 0.14 0.11 0.22 0.13 0.39 0.12 0.47 0.35 29% 2.21 -10%

2004 0.40 1.30 2.26 1.97 2.84 2.48 2.86 2.15 2.46 1.97 2.53 3.09 - 26.31 -

2005 1.90 1.76 2.63 1.66 2.54 2.47 0.94 0.48 0.71 0.67 1.72 1.31 -16% 18.79 34%

2006 1.74 0.55 1.97 1.91 1.48 2.78 2.28 3.74 1.78 2.13 1.79 1.82 15% 23.97 -22%

2007 1.54 0.30 1.96 1.57 - - - - - - - - -18% 5.37 -13%


1 – growth regarding the same month last year 2 – from the beginning of the year up to the analyzed month inclusive 3- growth regarding the same period last year

Monthly Report. Russia. PVC

Market Analysis: Domestic Market, Europe, Asia ………………………………………………………………………………………………………

4

Caustic Soda: General Indexes..……………………………………………………………………………………………………………………………. 5

Caustic Soda: Production …………………………………………………………….…………………………………………………………………………………………………………………. 5

Liquid Caustic Soda: Export………………………………….…………………………………………………………………………………………………………………………………………. 8

Liquid Caustic Soda: Import……..……………………………………………………………………………………………………………………………………………………………………. 11

Solid Caustic Soda: Export…………………………………….………………………………………………………………………………………………………………………………………… 12

Solid Caustic Soda: Import……………………….……………………………………………………………………………………………………………………………………………………… 15

Key Economic and Social Figures in the Russian Federation …………………………………………………………………………………….. 16

News ………………………………………………………………………………………………………………………………………………………………… 17

General

The Report has been made up on the basis of statistical information provided by

the statistical institutions of the Russian Federation and may contain certain

inaccuracies connected with the incorrect distribution of data by types of Caustic

Soda based on the Foreign Trade Codes in the customs statistics of the Federal

Customs Service. The most detailed market information by consumers and

producers can be found in our Annual Report. The information presented in this

Report is intended for the exclusive use of MRC clients. The information presented

herein is strictly the opinion of MRC and is based on data collected within the

public sector and on data prepared by the specialists of MRC. MRC furnishes no

security or warranty and assumes no liability as to consequences of decisions

taken in regard to the information presented in this Report.

Classification of Products

The Report contains information on: Solid Caustic Soda – solid Caustic Soda;

Liquid Caustic Soda – liquid Caustic Soda. The special ratio is used for

calculation of data in dry metric tons.

Producers

Producers mean enterprises directly engaged in Caustic Soda production; i.e. the

analysis does not include all trading, intermediary and offshore companies. The

names of producers are given without inverted comas, their organizational and

legal forms are omitted, and we use general names of groups of companies

without names of their subsidiaries.

Consumption

The consumption rate is defined as the calculated one, i.e. it equals to the

formula “production + import - export”. This figure does not account stock

remainders, and cannot conform to the level of the end consumption.

Prices

In our Reports, we try to represent prices of deals on sales of raw materials as

accurate as possible. At the formation of prices we consider prices of the

current month.

Diagrams and Tables

Diagrams in the Report are often doubled by the corresponding tables. This has

been done deliberately, since diagrams help define either one or anothers trend,

while corresponding accurate figures from tables are needed for more prices

analysis.

Designations

In our Report we used the following designations: MT – ton, thous. - thousand,

mln. – million, RUB – Russian ruble, USD – US dollar, EUR – Euro, DMT-dry

metric ton.

Growth Rates

As a rule, a growth rates in tables is the ratio of an index during the analyzed

period to the previous period. In case of illogically high (low) indexes, for

example, 900%, we put “-“.

References in the Text

1 – growth regarding the same period last year;

2 – aggregate data from the beginning of the year up to the present month

inclusive;

3 – growth regarding the same period last year.

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Contents

Legend

Methodology

- force majeure - growth/decrease since the trend turning point

Our Contacts: Sales: [email protected] Olga Savina [email protected] Telephones: Moscow: + 7 495 543 91 94

General questions: [email protected] Vyacheslav Mitskevich [email protected] Kyiv: + 38044 240 82 35


May 28, 2007 4 © MRC

During the four months of the current year, the output of caustic

soda (here and further in DMT - for 100% of the base material)

increased by 6% regarding the same period in 2006 and constituted

438.30 thous. DMT.

The estimated consumption during the same period decreased

from 367.26 thous. DMT in the previous year down to 362.98 thous.

DMT in the current year.

Export shipments increased by 49%, up to 80.69 thous. DMT. At

the same time, the export of caustic in April decreased by 22%

regarding the same figure in April of the current year.

Import supplies of caustic soda this year are lower than the

figure of the previous year. Thus, according to the results of the four

months of 2007, the import of caustic made up 5.37 thous. DMT

[page 2].

During January-April, Russian producers of caustic soda

increased their output. Thus, Caustic (Sterlitamak) produced 84.60

KT, which was by 3% more than last year; Caustic (Volgograd)

increased its output volumes by 6%, up to 75.4 thous. DMT.

Sayanskchemplast is increasing its production volumes as well.

According to the results of the four months, the enterprise produced

more alkali by 34% (56.6 thous. DMT) comparing with the same

period in 2006 [page 6].

According to the results of the four months, export supplies of

liquid caustic soda increased by 45%, comparing with the previous

year, and constituted 137.51 KT.

In April, about 59% of the overall export of liquid caustic soda

belonged to Ukraine. During January-April, the share of export of

liquid caustic to Ukraine constituted 51% in the overall volume.

This year, Ukrainian caustic producers decreased their output

volumes (during January-April 2007, the output of caustic soda

decreased by 40.5%, down to 44.9 KT, comparing with the same

period in 2006). Within the nearest months, we expect increasing

export shipments to Ukraine, particularly to Nickolayev Alumina Plant.

In Ukraine the deal for Dneproazot is in process now. The

possible buyer of Dneproazot could be the state corporation Ukrnafta.

The second and the third in terms of liquid caustic supplies were

Turkey and Kazakhstan with the share of 20% and 12% in the overall

volume, correspondingly [page 8].

The Uzbek government wants to display for sale shares of nine

plants united by the state company “Uzchemprom”. The interest in the

Uzbek chemical industry is shown by Russian companies as well.

Particularly, “Caustic” (Volgograd) and the OJSC “Navoiazot”, on the

basis of the Uzbek enterprise, a joint venture to manufacture organic

synthesis products. The cost of the enterprise is about USD200 million.

In compliance with the preliminary feasibility studies, the joint venture

plans to build a complex to produce 80 KT of caustic soda and 120 KT

of PVC annually on the basis of the acetylene production of the OJSC

“Navoiazot” [page 18].

Most probably, in May the export supplies of liquid caustic in

Russia would exceed the figure recorded in April; in June, there may

be an insignificant decrease. At the same time, export prices for

liquid caustic remained at the same level and made up USD 150–

155 /MT DAF, border of Russia.

Commencing 2007 export supplies of solid caustic increased

by practically 65%, comparing with the same period in 2006, and

constituted 17.4 thous. DMT. The biggest export volumes of solid

caustic this year belong to Uzbekistan – about 28%.

In April, quotations of export prices for solid caustic increased

in average by USD 5 – 10 /DMT and constituted 385–395

USD/DMT DAF, border of Russia.

The import of solid caustic soda constituted 1.54 thous. DMT

in April. The share of Chinese caustic in the overall import

constituted about 82%; the remaining 18% were supplies of Anwil

of Poland.

During January-April of the current year, the demand exceeded

supply in the caustic market. Though European manufacturers

increased the output of caustic soda by more than 4%, up to 3732.4

thous. DMT, during that period, comparing with 2006, that was not

enough to meet the demand.

Stock resources kept on increasing in April. They increased by

almost 19.000 DMT, comparing with March, and constituted more

than 322.000 DMT; that was the highest figure since February 2006.

However, according to experts, the scale of that increase was very

frugal regarding the potential decrease of output in May when some

plants reduce output volumes due to scheduled maintenance.

In May 2007, quotations of prices for caustic remained at the

level recorded in April: the price for solid caustic varied within the

range of USD 410-430/DMT, FD NWE, spot. At the same time,

prices for liquid caustic soda varied within the range of USD 280-

305/DMT, FD NWE, spot.

With the beginning of the second quarter, the Asian market of

caustic soda somewhat rallied. Currently, the market is mainly

oriented towards export supplies. Discussions of prices for the

Australian alumina market was the main peculiarity of the Asian

market in May.

In the second quarter of 2007, they plan to suspend caustic

soda production in Japan, South Korea, China, Indonesia and

Taiwan.

Kanoria Chemicals & Industries of India plans to increase

production of caustic soda up to 130 KT a year.

In May, export prices for caustic soda increased by USD 5-

10/DMT, up to USD 250-275/DMT, FOB Asia, spot. At the same time,

domestic prices varied within the range of USD 300-310/DMT, CFR

Asia, spot.

Domestic Market

Europe

Asia


28 апреля 2007 года 5 © MRC

Caustic Soda*: Apparent Consumption, 000 DMT

Index Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1. % From the


Growth3. %

Production 94.44 88.38 85.17 85.15 86.79 97.06 89.81 93.31 97.35 115.60 101.30 113.40 108.00 2% 438.30 6%

Import 1.91 1.48 2.78 2.28 3.74 1.78 2.13 1.79 1.82 1.54 0.30 1.96 1.57 -18% 5.37 -13%

Export 13.47 17.10 13.31 19.13 17.95 13.72 21.42 20.48 21.77 18.25 22.61 22.36 17.47 30% 80.69 49%

Consumption 94.44 88.38 85.17 85.15 86.79 97.06 89.81 93.31 97.35 98.89 78.99 93.00 92.10 -2% 362.98 -1%

Caustic, Volgograd, 000 DMT

0

5

10

15

20

25


Caustic, Volgograd. Utilization of Capacities, %

0%

30%

60%

90%

120%


Caustic, Sterlitamak, 000 DMT

0

5

10

15

20

25


Caustic, Sterlitamak. Utilization of Capacities, %

0%

25%

50%

75%

100%


Sayanskchemplast, 000 DMT

0

3

6

9

12

15


Sayanskchemplast. Utilization of Capacities, %

0%

25%

50%

75%

100%



Caustic Soda: Production and Utilization of Production Capacities by Companies


May 28, 2007 6 © MRC

Caustic Soda*: Production by Companies, 000 DMT

Company Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Caustic, Sterlitamak

20.90 21.60 20.80 21.80 17.30 19.90 22.20 21.70 21.90 21.40 20.00 22.10 21.10 1% 84.60 3%

Caustic, Volgograd 17.40 16.80 17.40 17.60 19.70 17.50 15.30 19.60 20.90 20.00 17.80 19.90 17.70 2% 75.40 6%

Sayanskchemplast 10.60 11.00 - - 4.30 11.60 13.70 13.80 14.20 14.60 13.30 14.40 14.30 35% 56.60 34%

others 57.10 54.60 57.50 62.60 59.70 60.00 57.90 56.90 60.30 59.60 50.20 57.00 54.90 -4% 221.70 1%

Total 106.00 104.00 95.70 102.00 101.00 109.00 109.10 112.00 117.30 115.60 101.30 113.40 108.00 2% 438.30 6%

Caustic, Volgograd. Production of Caustic Soda*, 000 DMT



Growth3.%

2005 18.70 14.80 18.10 16.40 17.80 18.40 17.70 18.40 18.60 15.20 17.70 18.60 - 210.40 -

2006 19.10 16.60 17.70 17.40 16.80 17.40 17.60 19.70 17.50 15.30 19.60 20.90 6% 215.60 4%

2007 20.00 17.80 19.90 17.70 - - - - - - - - 2% 75.40 6%

Caustic, Sterlitamak. Production of Caustic Soda*, 000 DMT



Growth3.%

2005 22.00 20.00 20.30 19.30 21.40 16.70 20.40 20.80 20.70 17.90 19.20 19.80 - 238.50 -

2006 21.70 19.70 19.70 20.90 21.60 20.80 21.80 17.30 19.90 22.20 21.70 21.90 8% 249.20 0.01%

2007 21.40 20.00 22.10 21.10 - - - - - - - - 1% 84.60 3%

Sayanskchemplast. Production of Caustic Soda*, 000 DMT



Growth3.%

2005 11.00 9.90 11.30 11.00 10.40 11.00 10.90 9.50 10.80 11.00 10.70 11.30 - 128.80 -

2006 11.00 10.00 10.70 10.60 11.00 0.00 0.00 4.30 11.60 13.70 13.80 14.20 -4% 110.90 -2%

2007 14.60 13.30 14.40 14.30 - - - - - - - - 35% 56.60 34%




May 28, 2007 7 © MRC

Production in April 2007, %


21%

Caustic. Volgograd16%

Sayanskchemplast13%

Chemprom, Novocheboksarsk

7%

Usolyechemprom8%

Sibur-Neftechem7%

Chemprom, Volgograd

6%

Ilimchemprom6% other

16%

Production in April 2006, %


20%


Sayanskchemplast10%

other54%

Production from the beginning of 20074, %


20%

Caustic. Volgograd17%Sayanskchemplast

13%

Chemprom, Novocheboksarsk

7%Sibur-Neftechem

7%

Usolyechemprom7%

Chemprom, Volgograd

7%

Ilimchemprom5%

other17%

Production from the beginning of 20064, %

other53%

Sayanskchemplast10%



20%

Production in 2006, %


20%


Sayanskchemplast9%

other54%

Production in 2005, %


19%


Sayanskchemplast10%

other54%



Caustic Soda*: Production by Companies, %


May 28, 2007 8 © MRC

Export in April 2007, %

other4%

Estonia3%Georgia

7%

Ukraine59%Kazakhstan

16%

Turkey11%

Export in April 2006, %Georgia

3%Estonia

4%

Kazakhstan15%

Ukraine31%

Azerbaijan30%

Turkey17%

Export from the beginning of 20074, %Estonia

3%other1%

Georgia4%

Azerbaijan9%

Ukraine51%

Turkey20%

Kazakhstan12%

Export from the beginning of 20064, %other3%

Estonia5%

Turkey11% Ukraine

37%

Azerbaijan27%

Kazakhstan17%


Chemprom, Kemerovo

9%

Chemprom, Volgograd

3%


43%

Caustic, Volgograd45%



Chemprom, Volgograd

17%


6%

Chemprom, Kemerovo

8%

Export from the beginning of 20074, %

Chemprom, Kemerovo

8%

Chemprom, Volgograd

4%

Azot, Novomoskovsk

3%


23%



Chemprom, Kemerovo

11%


8%

Chemprom, Volgograd

15%


4 – from the beginning of the year up to the analyzed month inclusive

Liquid Caustic Soda: Export by Countries, %

Liquid Caustic Soda: Export by Companies, %


May 28, 2007 9 © MRC

Liquid Caustic Soda: Export by Countries, KT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Ukraine 7.66 10.17 2.53 3.10 6.69 9.43 11.48 16.60 16.19 19.70 17.67 14.93 16.84 120% 69.14 94%

Turkey 3.95 12.28 11.51 19.03 14.78 2.75 13.99 3.87 10.55 3.72 6.00 15.19 3.18 -20% 28.09 173%

Kazakhstan 3.48 4.13 4.06 4.15 3.52 4.44 4.42 5.49 5.54 3.90 4.48 4.02 4.47 29% 16.87 6%

Azerbaijan 7.03 4.47 3.07 2.78 1.71 3.38 2.64 4.70 3.22 4.08 4.33 3.55 0.88 -87% 12.84 -50%

Estonia 0.98 0.76 1.29 1.33 1.21 1.23 0.78 1.39 1.54 1.06 1.05 1.58 0.89 -9% 4.59 -2%

Georgia 0.64 - - - - - - - - 0.85 1.04 1.26 1.94 202% 5.08 424%

Finland - - - - 3.23 3.58 3.11 3.09 - - - - - - - -

others - - 1.23 0.06 0.25 0.01 0.42 0.42 - 0.01 0.76 0.12 - 0.89 -52%

Total 23.74 31.81 23.69 30.45 31.14 25.06 36.43 35.56 37.46 33.31 34.58 41.29 28.33 19% 137.51 45%

Liquid Caustic Soda: Export by Companies, KT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the

beginning of theyear2

Growth3.%

Caustic, Volgograd

16.35 25.51 15.75 26.61 24.58 16.07 23.84 22.41 24.95 19.49 22.72 30.04 12.64 -23% 84.90 35%


1.47 1.18 1.52 1.05 4.72 6.38 9.80 9.72 6.26 7.95 6.14 5.76 12.28 738% 32.13 331%

Chemprom, Kemerovo

1.90 2.58 2.83 2.79 1.84 2.60 2.78 2.94 3.34 2.58 2.59 2.70 2.46 29% 10.32 4%

Chemprom, Volgograd

4.02 2.53 3.58 - - - - - 1.49 2.13 1.06 1.50 0.94 -77% 5.63 -61%

Azot, Novomoskovsk

- - - - - - - 0.48 1.43 1.16 2.06 1.28 - - 4.50 -

others 0.01 - 0.01 - 0.01 0.01 0.02 0.01 - - 0.01 - 0.01 73% 0.02 27%

Total 23.74 31.81 23.69 30.45 31.14 25.06 36.43 35.56 37.46 33.31 34.58 41.29 28.33 19% 137.51 45%

Export of Liquid Caustic Soda. Caustic, Volgograd, KT



Growth3.%

2002 4.08 4.41 3.62 5.31 3.96 7.47 5.40 5.75 5.18 4.58 8.98 7.99 - 66.73 -

2003 10.00 9.15 5.22 5.39 6.44 9.82 8.25 8.16 6.34 7.90 7.73 10.02 2% 94.42 71%

2004 5.25 11.66 13.83 9.48 5.93 7.78 9.15 14.37 16.13 12.07 25.10 16.32 76% 147.07 35%

2005 12.01 15.57 14.02 17.72 23.44 24.56 24.16 18.79 11.36 23.06 11.86 16.37 87% 212.92 47%

2006 12.07 17.29 17.26 16.35 25.51 15.75 26.61 24.58 16.07 23.84 22.41 24.95 -8% 242.69 6%

2007 19.49 22.72 30.04 12.64 - - - - - - - - -23% 84.90 35%

Export of Liquid Caustic Soda. Caustic, Sterlitamak, KT



Growth3.%

2002 1.62 4.61 2.63 4.55 4.03 5.27 4.82 3.00 3.01 5.60 5.54 3.03 - 47.71 -

2003 2.07 4.24 4.11 5.07 3.64 0.69 2.21 3.36 2.38 5.83 3.30 2.15 11% 39.05 16%

2004 - 1.68 2.08 0.64 3.34 1.94 2.14 4.05 3.56 3.33 4.52 7.07 -87% 34.35 -72%

2005 3.01 5.77 4.93 3.92 3.50 4.15 4.69 2.24 3.38 3.23 8.39 1.90 513% 49.11 301%

2006 2.06 2.11 1.82 1.47 1.18 1.52 1.05 4.72 6.38 9.80 9.72 6.26 -63% 48.09 -58%

2007 7.95 6.14 5.76 12.28 - - - - - - - - 735% 32.13 331%


May 28, 2007 10 © MRC

Export of Liquid Caustic Soda. Chemprom, Kemerovo, KT



Growth3.%

2002 1.76 1.65 1.78 2.13 2.17 1.27 2.35 1.61 1.15 1.32 1.85 2.50 - 21.54 -

2003 1.59 0.88 1.33 1.96 1.38 0.71 0.93 0.56 1.25 1.43 1.54 2.54 -8% 16.10 -21%

2004 0.12 2.26 1.90 2.88 2.67 2.52 2.75 1.48 2.85 1.88 2.16 2.63 47% 26.10 24%

2005 2.61 3.20 2.58 2.39 2.51 2.68 1.27 3.41 2.47 2.90 2.49 2.67 -17% 31.18 51%

2006 2.34 2.96 2.75 1.90 2.58 2.83 2.79 1.84 2.60 2.78 2.94 3.34 -21% 31.65 -8%

2007 2.58 2.59 2.70 2.46 - - - - - - - - 29% 10.33 4%

Export of Liquid Caustic Soda by Countries. Caustic, Volgograd, KT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Turkey 3.95 12.28 11.51 19.03 14.78 2.75 13.99 3.87 9.60 3.72 6.00 15.19 3.18 -20% 28.09 173%

Ukraine 6.18 9.46 1.64 3.10 6.69 8.36 6.31 12.28 10.12 9.72 10.73 8.95 6.30 2% 35.69 9%

Azerbaijan 4.49 2.64 0.37 2.78 1.71 3.38 2.64 4.70 3.22 3.85 3.68 2.78 - - 10.32 -26%

Estonia 0.98 0.76 1.29 1.33 1.21 1.23 0.78 1.39 1.54 1.06 1.05 1.58 0.89 -9% 4.59 -2%

Kazakhstan 0.12 0.37 0.25 0.30 0.20 0.36 0.11 0.17 0.35 0.28 0.23 0.11 0.28 143% 0.91 133%

Georgia 0.64 - - - - - - - - 0.85 1.04 1.26 1.94 204% 5.08 426%

Lithuania - - 0.05 0.06 - - - - - - - 0.17 - 0.17 -

others - - 0.62 - - - - - 0.12 - - - 0.06 - 0.06 -

Total 16.35 25.51 15.75 26.61 24.58 16.07 23.84 22.41 24.95 19.49 22.72 30.04 12.64 -23% 84.90 35%

Export of Liquid Caustic Soda by Countries. Caustic, Sterlitamak, KT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Ukraine - - - - - 1.07 5.17 3.84 3.28 6.92 4.47 3.97 10.55 - 25.91 -

Kazakhstan 1.47 1.18 0.98 1.05 1.49 1.48 1.52 2.38 1.73 1.03 1.66 1.20 1.74 19% 5.64 0.2%

Finland - - - - 3.23 3.58 3.11 3.09 - - - - - - - -

Uzbekistan - - 0.54 - - 0.25 - 0.41 0.29 - - 0.59 - - 0.59 -68%

Turkey - - - - - - - - 0.96 - - - - - - - -

Total 1.47 1.18 1.52 1.05 4.72 6.38 9.80 9.72 6.26 7.95 6.14 5.76 12.28 738% 32.13 331%

Export of Liquid Caustic Soda by Countries. Chemprom, Kemerovo, KT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Kazakhstan 1.90 2.58 2.83 2.79 1.84 2.60 2.78 2.94 3.34 2.58 2.59 2.70 2.46 29% 10.32 4%

Total 1.90 2.58 2.83 2.79 1.84 2.60 2.78 2.94 3.34 2.58 2.59 2.70 2.46 29% 10.32 4%



May 28, 2007 11 © MRC

Liquid Caustic Soda: Import by Countries, KT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Ukraine 1.05 1.75 1.21 1.18 1.46 1.33 0.29 0.23 0.23 0.12 0.12 - - - 0.24 -94%

Poland 1.72 - - - - - - - - - - - - - - -

Finland 0.03 0.03 0.03 0.01 0.03 0.03 0.03 0.03 0.03 0.01 0.03 0.02 0.03 2% 0.08 16%

Czech Rep. 0.01 - 0.01 - - - - - - 0.01 - 0.01 0.01 78% 0.03 -27%

Germany 0.02 - - 0.01 - 0.01 - - - - 0.01 0.01 0.01 -49% 0.03 27%

others - 0.01 - 0.01 - - - 0.01 - - - - - - - -

Total 2.83 1.79 1.26 1.20 1.49 1.37 0.32 0.26 0.26 0.13 0.16 0.04 0.05 -98% 0.38 -96%

Import in April 2007, %

Germany20%

Finland60%

Czech Rep20%


other2%

Poland61%

Ukraine37%

Import from the beginning of 20074, %

Czech Rep8%

Germany8%

Ukraine63%

Finland21%


other2%

Poland54%

Ukraine44%

Import in 2006, %

Finland2%

other1%

Ukraine68%

Poland29%

Import in 2005, %

Poland28%

Ukraine70%

other1%

Finland1%


Liquid Caustic Soda: Import by Countries, %


May 28, 2007 12 © MRC


Poland2%

other10%

China2%

Germany3%

Kazakhstan7%

Ukraine9%

Azerbaijan10% Syria

24%

Uzbekistan33%

Export in April 2006, %Azerbaijan

5%other9%

Poland6%

Kirgizia7%

Germany8%

Turkmenistan9%

Ukraine15%

Uzbekistan18%

Kazakhstan23%


Uzbekistan28%

Syria17%

Ukraine13%

Kazakhstan10%

Germany6%

Azerbaijan5%

Turkmenistan4%

other14%

Poland3%

Export from the beginning of 20064, %%

Guinea2%

other12%

Azerbaijan5%

Germany7%

Poland7%

Turkmenistan8%

Ukraine12%

Kazakhstan18%

Uzbekistan29%


Chemprom, Volgograd

2%


21%


Export in April 2006, %other1%


32%


Export from the beginning of 20074, %Plastkab

1%Chemprom, Volgograd

7%


24%


Export from the beginning of 20064, %other1%


30%


4 – from the beginning of the year up to the analyzed month inclusive

Solid Caustic Soda: Export by Countries, %

Solid Caustic Soda: Export by Companies, %


May 28, 2007 13 © MRC

Solid Caustic Soda: Export by Countries, 000 DMT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Uzbekistan 0.45 0.51 0.00 0.30 0.34 0.12 0.34 0.99 1.00 0.97 0.80 1.15 1.40 214% 4.32 42%

Ukraine 0.37 0.37 0.49 0.47 0.47 0.63 0.67 0.65 0.40 0.40 0.71 0.50 0.41 12% 2.03 55%

Syria - - - 0.65 1.31 - - - - - 1.54 - 1.07 - 2.61 -

Egypt - - - - 0.13 - - - - 0.17 1.35 - - - 1.52 -

Kazakhstan 0.60 0.31 0.52 0.20 0.37 0.33 0.24 0.40 0.10 0.55 0.55 0.25 0.30 -50% 1.65 -14%

Germany 0.20 0.22 0.18 0.22 0.32 0.32 0.16 0.42 0.36 0.30 0.24 0.36 0.12 -40% 1.02 44%

Turkmenistan 0.24 0.30 0.56 0.62 0.19 0.22 0.48 0.66 - - 0.66 0.05 - - 0.71 -16%

Azerbaijan 0.12 - 0.06 0.06 - - 0.06 0.06 - 0.12 0.12 0.18 0.45 278% 0.87 63%

Poland 0.16 0.11 0.16 0.16 0.11 0.16 0.05 0.16 0.11 - 0.11 0.26 0.11 -33% 0.47 -36%

Lithuania - 0.16 0.05 0.11 0.05 0.11 0.05 0.11 0.05 0.11 0.11 0.05 0.05 - 0.32 99%

Turkey - - - 2.10 - - 2.50 - 1.54 - - - - - - -

others 0.41 0.50 0.39 0.23 0.35 0.30 0.11 0.69 0.97 0.32 0.52 0.57 0.51 25% 1.91 48%

Total 2.55 2.47 2.41 5.12 3.63 2.19 4.66 4.13 4.54 2.93 6.70 3.37 4.43 74% 17.43 65%

Solid Caustic Soda: Export by Companies, 000 DMT

Company Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Caustic, Volgograd

1.72 1.63 1.79 4.53 3.23 1.59 3.87 2.94 3.46 2.09 4.54 1.90 3.38 97% 11.91 62%


0.81 0.84 0.59 0.58 0.37 0.43 0.54 0.90 0.84 0.60 1.58 1.02 0.94 16% 4.14 33%

Chemprom, Volgograd

- - - - - 0.14 0.24 0.28 0.22 0.23 0.58 0.28 0.10 - 1.19 -

others 0.02 0.00 0.04 0.00 0.02 0.03 0.01 0.01 0.02 0.00 0.01 0.17 0.01 -34% 0.19 239%

Total 2.55 2.47 2.41 5.12 3.63 2.19 4.66 4.13 4.54 2.93 6.70 3.37 4.43 74% 17.43 65%

Export of Solid Caustic Soda. Caustic, Volgograd, 000 DMT



Growth3.%

2002 2.87 0.33 0.20 0.13 0.49 0.73 0.26 2.83 3.59 2.48 3.63 2.29 - 19.83 -

2003 2.56 1.32 1.71 1.18 1.82 2.91 3.78 3.62 5.42 4.60 3.91 3.73 808% 36.56 92%

2004 2.32 1.94 2.22 4.97 2.56 2.16 2.53 4.49 5.09 2.97 2.72 3.74 321% 37.71 69%

2005 1.19 3.25 2.50 3.64 4.38 2.38 2.18 2.90 2.74 1.98 3.34 2.32 -27% 32.80 -8%

2006 1.61 2.14 1.90 1.72 1.63 1.79 4.53 3.23 1.59 3.87 2.94 3.46 -53% 30.41 -30%

2007 2.09 4.54 1.90 3.38 - - - - - - - - 97% 11.91 62%

Export of Solid Caustic Soda. Caustic, Sterlitamak, 000 DMT



Growth3.%

2002 0.30 0.71 0.07 0.65 0.61 0.33 0.46 0.43 0.19 0.95 0.82 0.33 - 5.85 -

2003 0.51 0.73 0.25 0.27 0.33 0.23 0.24 0.34 0.59 0.70 0.67 0.59 -58% 5.45 2%

2004 0.09 0.16 0.12 0.27 0.17 - 0.23 0.33 0.30 0.09 0.19 0.53 0% 2.48 -64%

2005 0.70 1.08 0.54 2.62 0.20 0.73 0.85 0.20 0.35 0.22 0.23 0.88 870% 8.60 672%

2006 0.80 0.51 1.00 0.81 0.84 0.59 0.58 0.37 0.43 0.54 0.90 0.84 -69% 8.21 -37%

2007 0.60 1.58 1.02 0.94 - - - - - - - - 16% 4.14 33%


May 28, 2007 14 © MRC

Export solid Caustic Soda. Chemprom, Volgograd, 000 DMT



Growth3.%

2002 - - - - - - - - - - - - - - -

2003 0.11 0.02 - - - - - - - - - - - 0.13 -

2004 - - - - - - - - - - - - - - -

2005 - - - - 0.03 - 0.02 - 0.04 0.05 - - - 0.14 -

2006 - - - - - - - - 0.14 0.24 0.28 0.22 - 0.88 -

2007 0.23 0.58 0.28 0.10 - - - - - - - - - 1.19 -

Export of Solid Caustic Soda by Countries. Caustic, Volgograd, 000 DMT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Syria - - - 0.65 1.31 - - - - - 1.54 - 1.07 - 2.61 -

Egypt - - - - 0.13 - - - - 0.17 1.35 - - - 1.52 -

Uzbekistan 0.33 0.33 - 0.16 0.22 - 0.22 0.33 0.22 0.49 0.38 0.55 0.93 184% 2.35 2%

Germany 0.20 0.22 0.18 0.22 0.32 0.32 0.16 0.42 0.36 0.30 0.24 0.36 0.12 -40% 1.02 44%

Kazakhstan 0.33 - 0.27 0.11 0.27 0.27 0.05 0.21 0.05 0.54 0.22 0.05 0.11 -66% 0.93 0.01%

Ukraine 0.37 0.37 0.47 0.47 0.47 0.47 0.43 0.37 0.21 0.21 0.14 0.26 0.32 -14% 0.92 -27%

Lithuania - 0.16 0.05 0.11 0.05 0.11 0.05 0.11 0.05 0.11 0.11 0.05 0.05 - 0.32 -

Poland 0.16 0.11 0.16 0.16 0.11 0.16 0.05 0.16 0.11 0.11 0.11 0.11 -33% 0.32 -57%

Turkmenistan - - 0.27 0.38 0.05 - 0.30 0.66 - - - - - - - -

Turkey - - - 2.10 - - 2.50 - 1.54 - - - - - - -

others 0.34 0.45 0.39 0.17 0.30 0.26 0.10 0.69 0.91 0.28 0.46 0.52 0.58 70% 1.84 42%

Total 1.72 1.63 1.79 4.53 3.23 1.59 3.87 2.94 3.46 2.09 4.54 1.90 3.38 97% 11.91 62%

Export of Solid Caustic Soda by Countries. Caustic, Sterlitamak, 000 DMT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Uzbekistan 0.12 0.18 - 0.13 0.12 0.12 0.12 0.66 0.78 0.48 0.42 0.60 0.48 297% 1.98 164%

Turkmenistan 0.24 0.30 0.29 0.24 0.12 0.22 0.18 - - - 0.66 0.05 0.06 -75% 0.77 -8%

Kazakhstan 0.27 0.31 0.24 0.09 0.09 0.05 0.18 0.18 - - 0.32 0.19 0.18 -34% 0.69 -29%

Azerbaijan 0.12 - 0.06 0.06 - - 0.06 0.06 - 0.12 0.12 0.18 0.18 50% 0.60 25%

Kirgizia 0.06 - - 0.06 0.04 0.04 - - 0.06 - 0.06 - - - 0.06 0%

Tajikistan - 0.04 - - - - - - - - - - 0.04 - 0.04 -

Ukraine - - - - - - - - - - - - - - -

Total 0.81 0.84 0.59 0.58 0.37 0.43 0.54 0.90 0.84 0.60 1.58 1.02 0.94 16% 4.14 33%

Export of Solid Caustic Soda by Countries. Chemprom, Volgograd, 000 DMT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

Ukraine - - - - - 0.14 0.24 0.28 0.19 0.19 0.58 0.24 0.10 - 1.11 -

Moldavia - - - - - - - - - 0.04 - 0.04 - - 0.08 -

Kazakhstan - - - - - - - - 0.03 - - - - - 1.19 -

Total - - - - - 0.14 0.24 0.28 0.22 0.23 0.58 0.28 0.10 - 1.19 -



May 28, 2007 15 © MRC

Solid Caustic Soda: Import by Countries, 000 DMT

Country Apr 06

May 06

Jun 06

Jul 06

Aug 06

Sep 06

Oct 06

Nov 06

Dec 06

Jan 07

Feb 07

Mar 07

Apr 07

Growth1.% From the


Growth3.%

China 0.12 0.30 1.81 1.18 2.49 1.01 1.71 1.50 1.49 1.45 - 1.80 1.26 - 4.51 516%

Poland 0.17 0.15 - 0.26 0.29 0.11 0.22 0.11 0.18 - 0.17 0.13 0.28 67% 0.58 187%

Lithuania 0.02 0.02 0.04 0.02 0.02 0.02 0.03 0.04 0.03 0.02 0.04 - - - 0.06 -32%

Germany - - - 0.01 - 0.01 0.01 0.02 0.01 0.00 0.01 0.01 - - 0.01 90%

Belgium 0.03 - - - - - - - - - - - - - - -86%

Azerbaijan 0.25 0.13 0.25 0.25 0.25 - - - - - - - - - - -100%

others 0.02 0.06 0.09 0.01 - - - - - - 0.01 - - - 0.01 -81%

Total 0.61 0.66 2.21 1.73 3.05 1.15 1.98 1.67 1.70 1.48 0.23 1.94 1.54 153% 5.18 176%


China82%

Poland18%


Poland28%

Azerbaijan40%

Belgium5%

China20%

other7%


Poland11%

China87%

other2%

Import from the beginning of 20064, %other4%

Poland11%

Lithuania5%

Azerbaijan41%

China39%

Import in 2006, %other2%Poland

9%

Lithuania2%

China77%

Azerbaijan10%

Import in 2005, %China5%

other3%

Azerbaijan77%

Poland15%


Solid Caustic Soda: Import by Countries, %


May 28, 2007 16 © MRC

GDP Growth Dynamics, %

2%

4%

6%

8%

10%


Processing Industry Index,%

0%

5%

10%

15%

20%


Official Currency Exchange Rate of the Central Bank of

the Russian Federation, 2006/2007

25

28

31

34

37

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

EUR

USD

Retail Trade Turnover, RUB billion

550

650

750

850

950


Key Economic and Social Figures in the Russian Federation


May 28, 2007 17 © MRC

May 23, 2007

“Caustic” was refused again

On Tuesday, May 22, the board of appeals of Moscow Arbitrage

Court remained in force the decision of the court of original

jurisdiction on allowance of claims of the OJSC “Caustic”

(Volgograd) about invalidation of the decision and order of the

Federal Antimonopoly Service of Russia (FAS), according to which

“Caustic” was declared an infringer of the antimonopoly legislation

with respect to the OJSC “Chemprom” (Volgograd). That was

informed by the press service of the enterprise.

We would like to remind that in August 2006, “Chemprom” turned

to the FAS with a request to take actions envisaged by the

antimonopoly legislation to avoid Caustic’s abusing owing to its

dominating position in the brine market, which is the main raw

material in production of chlorine and caustic. The thing was that on

June 23rd “Caustic” stopped supplying of brine to “Chemprom”.

Production of brine is the object designed and constructed in the

Soviet times to serve both enterprises, but as a result of

privatization it was passed into the ownership of “Caustic”. Since

then, being the owner of the only production of underground brine

in Volgograd Region, Caustic has been demonstrating a tough

position regarding supplies of this product to the neighboring

enterprise. Constant increase of prices for brine and irregular

supplies introduced a destabilizing element into the work of the

company.

On December 20, the Federal Antimonopoly Service of Russia

pronounced a judgment on breach of the antimonopoly legislation

by the OJSC “Caustic” in stoppage of supplies of underground brine

to the OJSC “Chemprom”, as well as in the establishment of

monopoly-high prices for this product. “Caustic” was ordered to stop

abusing its dominating position and to make an agreement with

“Chemprom” before January 31, 2007 on supplies of the brine in

volumes needed to ensure production activities of the enterprise at

economically based prices.

Specialists of the FAS indicated that the price for these raw

materials supplied to the OJSC “Chemprom” was monopoly high

since it exceeded the amount of costs and profit required for

production and sales of such products. Particularly, in December of

2003, the General Director of “Caustic”, Mr. Eldor Azizov, took a

decision on inclusion of the investment component for construction

and development of additional brine wells into the price of the

product for other consumers. At the same time, the enterprise was

not able to confirm the validity of plans on increase of brine

production with the indication of objects and volumes of

investments, period of construction and commissioning of additional

wells, and to present respective documents to the FAS of Russia.

On January 9, “Chemprom” forwarded a letter to “Caustic” with a

proposal to make an agreement in accordance with the order of the

Federal Antimonopoly Service. However, “Chemprom” got a written

refusal from “Caustic” on January 25. The main reason was the

price for the brine offered by “Chemprom” — RUB46 per one cubic

meter. Notwithstanding the order of the FAS of Russia, «Caustic”

insisted on the former price — RUB165 per one cubic meter.

“Chemprom” had to turn to Arbitrage of Volgograd Region with a

claim on compulsion of “Caustic” to make an agreement on supply

of brine to the enterprise. “Caustic” also turned to Arbitrage of

Moscow claiming to nullify decisions and orders of the Federal

Antimonopoly Service pertinent to the enterprise. The legal

investigation in Volgograd Arbitrage was suspended till the

pronouncement of the decision by Arbitrage of Moscow.

In connection with the absence of legal grounds for invalidation of

decisions and orders of the FAS of Russia, the board of appeals of

Moscow Arbitrage ratified the decision of court of original jurisdiction

on denial of counts of “Caustic”.

May 23, 2007

Chemprom of Uzbekistan has been displayed for sale

In the nearest future, the State Property Committee of Uzbekistan is

going to sell controlling share holdings of almost all biggest

enterprises, “Expert” informs. In the meantime, the government

wants to leave assets only in the fuel and energy complex, minerals

industry and telecommunications.

We would like to remind that still at the beginning of July last year,

the government of Uzbekistan declared about a large-scale program

on de-stating of property for 2006–2008. Already at the beginning

of May, Maxam Corp. SAU of Spain acquired 49% of shares of the

OJSC “Electrochemprom” (Chirchik, Tashkent Region), which is

among the three biggest chemical plants of Uzbekistan, for USD22

million.

The government wants to display for sale shares of nine plants

united by the state company “Uzchemprom”. Currently, they are

accomplishing tender procedures regarding two biggest chemical

enterprises: OJSC “Navoiazot” and OJSC “Ammofos”.

In the nearest future, they plan to sell three more plants based in

Fergana: “Ferganaazot”, a furane compounds plant and a chemical

fiber plant, and Samarkand Chemical Plant.

The interest in the Uzbek chemical industry is shown by Russian

companies as well. Particularly, “Caustic” (Volgograd) and the OJSC

“Navoiazot”, on the basis of the Uzbek enterprise, a joint venture to

manufacture organic synthesis products. The cost of the enterprise

is about USD200 million.

News

Monthly Report. Russia. Caustic.

In compliance with the preliminary feasibility studies, the joint

venture plans to build a complex to produce 80 KT of caustic soda

and 120 KT of PVC annually on the basis of the acetylene production

of the OJSC “Navoiazot”.

The chemical industry of Uzbekistan is attractive due to its access to

cheap gas and possibility to produce mineral fertilizers with a

relatively low prime cost.

Experts also agree that Uzbek assets shall rouse investors; interest

in access to cheap gas, and, consequently, in possibility to produce

nitric fertilizers, which is one of the main competitive products of

the Uzbek chemical industry with a relatively low prime cost.

Purchasing companies will have to modernize acquired enterprises

since they were built in the 60–70s, now they are morally and

technically obsolete.

May 23-24, 2007

Kanoria Chemicals&Industries expands its production of

caustic soda

Kanoria Chemicals&Industries of India is planning to expand

production of caustic soda up to 130 KT a year. This is informed by

“Evraziyskiy Chemicheskiy Rynok” (“Eurasian Chemical Market”).

The project will be financed by the International Finance Corporation

(IFC). The volume of required investments will constitute USD 20

million, 15 of them IFC will provide as a loan, and 5 million will be

used to buy shares of Kanoria Chemicals & Industries. The

accomplishment of the project is planned for 2008.

Kanoria Chemicals & Industries produces caustic soda at two

enterprises: Renukoot in the State of Uttar-Pradesh and Ankleshwar

in the state of Gudjarat.

KCI produces 20 brands of chemical substances. The share of the

company constitutes 18% of the market of formaldehyde, which is

widely used in the production of plastics. The share of the company

in the hexamine market makes up 38%.

May 18-25, 2007

The commodity output of “Caustic” constituted RUB 1 098,8

million

During January-April 2007, the commodity output of “Caustic” (the

managing company is “Nikochem”) constituted RUB 1098,8 million,

which was by 3.6% more than during the same period last year in

comparable prices.

During that period, the company produced: liquid caustic soda –

49.3 KT, granulated caustic soda – 22.4 KT, chlorine – 16.8 KT,

synthetic hydrochloric acid – 83.0 KT, anti-icing material “AGS” –

20.5 KT, liquid chlorinated paraffin wax – 2.9 KT.

The growth of output volumes during January-April 2007 by main

types of products, comparing with the same period last year,

constituted: 6.7% by liquid caustic soda, 3.4% by garanulated

caustic soda, 10.6% by chlorine, 5.1% by synthetic hydrochloric

acid, 17.4% by liquid chlorinated paraffin wax, 270% by anti-icing

material “AGS”.

May 28, 2007

“Sibur-Neftechem” summed up results of its production

activities in April

“Sibur-Neftechem” summed up results of its production activities in

April 2007. All three plants of the company – “Petrochemical Plant”

in Kstovo, “Ethylene and Glycol Oxide Plant” and “Kaprolaktam” in

Dzerzhynsk successfully fulfilled plans by the majority of products.

In April 2007, “Petrochemical Plant” processed 59.4 KT of raw

materials on pyrolysis furnaces, which constituted 92%, comparing

with the same period last year. In April 2007, the plant produced:

20.7 KT of ethylene, 9.5 KT of propylene, 5.3 MT of butane-

butadiene fraction (BBF), and 2.5 KT of heavy pyrolized resin. In

April 2007, the enterprise went over the quota in terms and BBF

production; it fulfilled the plan on benzol production.

In April 2007, “Ethylene and Glycol Oxide” Plant produced: 5.7 KT of

ethylene oxide, 19.2 KT of monoethyleneglycol (MEG), 2.04 MT of

diethyleneglycol (DEG), 122.4 MT of triethyleneglycol (TEG).

“Kaprolaktam” (Dzerzhynsk) produced: 1.4 MT of liquid chlorine in

tanks and containers, 1.2 KT of ethylene chlorohydrin, 7.8 MT. In

April 2007, the plant went over the quota in terms of production of

hydrochloric acid, ethylene chlorohydrin, aluminum sulfate, caustic,

PVC resin and compounds.

May 29, 2007

“Usolyechemprom” will borrow RUB 68.5 million from

“Alpha-Bank”

“Usolyechemprom” Ltd. (Usolye-Sibirskoye, a member of “Nitol”

Group) will take a credit from the OJSC “Alpha-Bank” for the

amount of RUB 68.5 at three-month MosIBOR +4.5% interest per

annum. This is informed in the statement of “Nitol Group” Ltd.,

which is the warrantor of the credit.

The credit will be granted for the period of 1 year.

“Usolyechemprom” specializes in production of calcium hypochlorite,

calcium carbide, caustic soda, hydrogen peroxide, PVC,

trichlorethylene and epichlorhydrin. Apart from “Usolyechemprom”,

the daughter enterprises of the “Nitol” Group include “Chemical

Group Nitol” Ltd., “Chemstroymontazh” Ltd., “Nitol-Cellulose Ethers”

Ltd., “Usolye-Sibirskiy Silicon” Ltd. and “Chembyt” Ltd.

Our Contacts: Sales: [email protected] Olga Savina [email protected] Telephones: Moscow: + 7 495 543 91 94

General questions: [email protected] Vyacheslav Mitskevich [email protected] Kyiv: + 38044 240 82 35

caustic soda. russia - mrc · producers mean enterprises directly engaged in caustic soda...

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