let's get back to fundamentals, page-22

GPASAS,
It is a very bad thing for PSH to have to sell its Soda Ash overseas. The reason is obvious.

The price PSH gets in Australian is set by having to match the cost of imports plus the importers cost of shipping into Australia.

Overseas PSH has to match its price plus transport from Australia against the total cost ex USA.

It is more profitable for PSH to sell in Australia and enjoy the competitive benefit of the home turf. Matching ANSAC in the internationally tendered market is much tougher.

Of course if that is the only way to shift product they must do it because it is very ineffective to try to throttle back the plant given its high fixed costs.

Now that Goro has finally started where will PSH get the product from? It can either buy it from its international competitors or take it from an existing Australian customer who will have to use imported product.

PSH's ideal market is Australia where demand about equals PSH capacity.

Bacci