Why Are Household Chemical Products Becoming More Expensive in Uzbekistan?

A customer sees a bottle of dishwashing liquid, liquid soap, or laundry gel on a store shelf and notices that the price has increased again. This is usually explained by exchange-rate fluctuations or higher retail margins. In reality, however, the cost of household chemical products begins to take shape much earlier — at factories in China and Iran, during international payments, transportation, customs-terminal handling, and finally at the manufacturing stage in Uzbekistan.

Two components are particularly important for many mass-market cleaning products: Sles 70 % and Labsa 96 %. Not every formulation contains both at the same time, but they form the basis of the cleaning system in a significant share of liquid household chemical products.

Two Components That Strongly Influence the Market

Sles 70 % provides foaming, surface wetting, and removal of dirt. It is widely used in dishwashing liquids, liquid soaps, shampoos, gels, and certain laundry products.

After neutralization, Labsa 96 % becomes an active cleaning component that works effectively against grease and difficult stains. It is used in dishwashing products, laundry gels, all-purpose cleaners, and other categories of household chemicals.

Formulations also contain thickeners, acidity regulators, preservatives, fragrances, colorants, and additional surfactants. However, changes in the cost of Sles 70 % and Labsa 96 % have a particularly noticeable impact on the production cost of mass-market products.

How Raw Materials Are Purchased in Uzbekistan

Uzbekistan’s market includes large, medium-sized, and small manufacturers of household chemical products. Their purchasing conditions differ considerably.

Large companies usually import Sles 70 % directly from China in full container loads. Direct imports allow them to select the factory, verify documentation, control batch quality, and spread transportation expenses across a larger volume. Large manufacturers can also maintain several months of inventory and therefore do not have to respond immediately to short-term market fluctuations.

Medium-sized and small manufacturers are more likely to purchase raw materials from local distributors. Ordering a full container and tying up a substantial amount of working capital in inventory is not always practical for them. As a result, they are more dependent on local availability, current prices, exchange rates, and distributor margins.

The situation with Labsa 96 % is more complicated. Even some large manufacturers prefer to purchase it within Uzbekistan because making direct payments to Iran is difficult.

Sles 70 %: Chinese Supply and Rising Factory Prices

Most of the Sles 70 % used in Uzbekistan is imported from China.

According to market participants, the most widely represented brand is Zanyu. Its estimated share may be around 75–85 %, although this is a market assessment rather than official statistical data.

Products from other Chinese manufacturers are also present, including Resun Auway, Sinolight, and Monsa, as well as several smaller factories.

Among the main local sellers of Sles 70 % are Citric.uz and Merit Chemicals. The product is also supplied by OT Chemical, Osiyo Chemicals, and other companies. However, local distributor sales account for only part of the overall market because many large household chemical manufacturers import Sles 70 % directly.

Around three years ago, Chinese factories offered Sles 70 % at approximately USD 850–900 per metric ton. The price later rose to a peak of about USD 1,600 per metric ton and is currently in the range of approximately USD 1,450–1,550 per metric ton.

One of the main reasons for the long-term increase has been the rising and unstable cost of the raw materials used to manufacture Sles 70 %, particularly fatty alcohols. Factory capacity utilization in China and the condition of international logistics routes also affect the price.

According to market observations, changes in traditional transport routes have led to some Indian cargo being redirected through China. This increases pressure on Chinese warehouses, terminals, railway lines, and transport corridors serving Central Asia. As a result, both delivery times and transportation costs may rise.

There is also the question of product origin. Some batches are offered on the market as Zanyu products, but their origin is not always supported by a complete set of factory documents. This does not automatically mean that the product is counterfeit, but manufacturers should verify the drum markings, batch number, certificate of analysis, packing list, and export documents.

Labsa 96 %: Dependence on Iran and Payment Difficulties

A significant share of the Labsa 96 % available in Uzbekistan is imported from Iran.

The main market player is considered to be Behdash, while Padideh is the second major manufacturer. Smaller brands are also present, including Moheb Roopak Kimia and Rames / Paknam. Their market share is considerably lower, but their products are also regularly available from local suppliers.

The key feature of the Labsa 96 % market is not only its country of origin but also the payment system. A standard bank transfer from Uzbekistan to Iran is difficult to arrange. Importers therefore have to use alternative payment routes through third countries and foreign intermediaries.

This creates additional costs for bank fees, currency conversion, intermediary services, and documentation. Transaction times become longer, while the risk of delayed payments also increases.

For this reason, many manufacturers purchase Labsa 96 % from local importers and distributors that have already handled the payment, transportation, and customs-clearance process. This is more convenient for the manufacturer, but the local price then depends on more than the Iranian factory price. It is also affected by intermediary expenses, local stock availability, and the level of market shortage.

Previously, Labsa 96 % was sold in Tashkent for approximately USD 1.40 per kilogram. At the peak of the shortage, the price reached around USD 4 per kilogram. It has since declined slightly and is currently approximately USD 3.50 per kilogram.

Thus, even after the recent reduction, Labsa 96 % remains more than twice as expensive as it was before.

Costs Continue After the Container Arrives

The factory price of raw materials is only the beginning of the cost chain.

Since the beginning of the year, goods classified under HS code heading 3402 have been subject to a 5 % import duty. This group includes Sles 70 % and Labsa 96 %. Therefore, even when the factory price remains unchanged, the cost of the raw material increases after importation.

Customs infrastructure services have also become more expensive. Over the past two years, the cost of customs-terminal storage and handling for one 20-foot container has increased from approximately USD 100 to USD 200.

This is accompanied by annual increases in the minimum rental rates for premises, including production facilities and warehouses used for raw materials, packaging, and finished products.

Transportation costs are also rising. A significant share of freight and passenger vehicles in Uzbekistan runs on gas, so increases in the prices of both gasoline and automotive gas directly affect production costs.

Raw materials must be transported from the terminal to the warehouse, packaging materials must be delivered to the factory, and finished products must then be distributed to retailers, distributors, and regional customers. Higher fuel prices therefore affect every stage of the supply chain.

Why Manufacturers Do Not Increase Prices at the Same Time

Higher production costs do not immediately appear on store shelves.

One manufacturer may continue using older stocks of Sles 70 % or Labsa 96 % purchased at a lower price, while another has already started working with a new, more expensive shipment. Similar products may therefore be sold at different prices for a certain period.

Large companies usually have larger inventories and can keep prices unchanged for longer. Smaller manufacturers purchase raw materials more frequently and are therefore exposed to new cost levels sooner.

When the cost of key ingredients rises significantly, manufacturers have several options: increase prices, reduce their profit margin, reduce the package size, or revise the formulation.

A formulation adjustment does not necessarily mean lower quality. A qualified technologist may replace a component while maintaining product performance. However, products should not be compared solely by the price of the bottle. Concentration, consumption rate, and actual cleaning performance must also be considered.

What the Final Price Consists Of

Today, the cost chain can be summarized as follows:

Sles 70 % and Labsa 96 % → international transportation → banking and intermediary expenses → 5 % import duty → customs-terminal services → transportation within Uzbekistan → factory and warehouse rent → packaging → manufacturing → delivery of the finished product.

When several links in this chain become more expensive at the same time, manufacturers cannot maintain the previous selling price indefinitely.

Conclusion

The increase in household chemical prices does not begin in the store. It begins with raw-material procurement, international payments, and logistics.

The cost of Sles 70 % depends on Chinese factory prices, the cost of fatty alcohols, and the capacity of transport routes. Labsa 96 % is additionally affected by supplies from Iran and difficulties in processing payments.

These factors are now accompanied by a 5 % import duty, a twofold increase in customs-terminal service charges, annual rent increases, and higher gasoline and automotive gas prices.

The higher price of the finished product is therefore not caused by a single factor or a single markup. It is the result of rising expenses at every stage — from the overseas factory to the delivery of the bottle to the retail store.