NatRoad urges long term AdBlue solution


National industry body seeks more ACCC action on pricing

NatRoad urges long term AdBlue solution
AdBlue concerns will be with us for some time yet

 

AdBlue stocks along key truck routes have stabilised but concerns remain about pricing and medium-term supplies, according to the National Road Transport Association (NatRoad).

NatRoad CEO Warren Clark said while federal government efforts to keep the country’s sole manufacturer of diesel exhaust fluid, Incitec Pivot, were welcome, they were always going to be a stop-gap measure. 

"We are pleased to see supplies reaching retail but Incitec Pivot has told the markets it has not changed plans to cease manufacturing in December," NatRoad CEO Warren Clark said.

"The federal government is obviously aware of that and has ruled out subsidies to other manufacturers, while continuing attempts to source supplies from markets other than China.

"We said from the outset that the shortage is a global problem but that it also underlines the need for a secure on-shore manufacturing capacity in Australia.

"We are still hearing from members about instances of price gouging in spite of stocks stabilising.

"We urge the Australian Competition and Consumer Commission to stay on the case."


Read how the HVIA has longer-term AdBlue concerns, here


While the focus has naturally been on Incitec Pivot Ltd (IPL) other producers are looking to be part of a solution.

One is Leigh Creek Energy, whose Leigh Creek Urea Project was making progress on export deals as the shortage was becoming a local issue last November.

 It has sealed a 500,000 tonne offtake export deal heads of agreement with Daelim of South Korea, where the global shortage of AdBlue first became apparent.

The company said this would allow it to "have the flexibility to deal with the remaining 500,000 tonnes earmarked for the domestic market as we see fit".

 

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