Glass Production in Emerging Economies to Drive Soda Ash Demand
By Roskill Information Services, PRNESunday, September 12, 2010
Soda Ash: Market Outlook to 2015 (10th edition, 2010)
LONDON, September 13, 2010 - Global consumption of soda ash fell by 7.6% in 2009 to 44Mt, following
growth of 4.2%py between 2000 and 2008. Consumers in the glass industry,
which accounts for 53% of total demand, scaled back purchases during the
global economic downturn. The fall was compounded by lower detergent and
chemical output, the other major end-uses for soda ash.
Emerging economies have been the growth driver for soda ash over the last
decade with rising GDP and urbanisation leading to higher per capita use of
products manufactured using soda ash. China was one of only a handful of
countries showing a positive increase in soda ash consumption in 2009 and was
responsible for 90% of world growth between 2000 and 2009. In industrialised
economies, however, demand for soda ash has been flat due to the maturity of
products using soda ash in the market, as well as substitution and
competition pressures.
Future demand for soda ash, forecast to grow at 3%py over the next five
years, will be led by flat glass, detergents and water treatment. The use of
soda ash in mining and metals and flue gas desulphurisation might also spur
increased demand. Emerging economies, particularly China and the wider
Southeast Asia region, but also the Middle East, South Asia and South
America, will continue to provide the best opportunities for soda ash demand
growth on a regional basis. The outlook for developed economies is more
uncertain.
Rationalisation looms over soda ash producers
Production of soda ash is highly concentrated in China, the USA and
Europe, together accounted for 80% of total production in 2009. A period of
acquisitions in the mid- to late- 2000s has consolidated ownership of
capacity. Tata Chemicals and Nirma of India now have operations in more than
one region, and operate both natural and synthetic capacity. Chinese
companies have expanded synthetic capacity rapidly and some are now of a size
comparable with natural producers in the USA. New capacity has also been
opened in other countries, most recently in Turkey in 2009.
Total capacity for soda ash production stands at 63Mtpy in mid-2010.
Operating rates are recovering from lows of 70% in 2009, but are still some
way off reaching the 85% seen in 2007/08. New and expansion projects have the
potential to add 15Mtpy to total capacity by 2015, with China contributing a
significant proportion to this total and other emerging economies the
remainder. China appears to be rapidly heading towards a position of
substantial overcapacity, although tighter government targets for raw
material and energy consumption could see some rationalisation of older
capacity by 2015.
Can the USA win back deep-sea market share from China?
China and the USA compete for sales in the deep-sea export markets of
East/Southeast Asia and South America, which lack sufficient domestic soda
ash capacity. Elsewhere, soda ash rarely moves beyond the region in which it
is produced, due to its low cost and high bulk characteristics. China is one
of only a few countries that has been able to compete with lower-cost natural
soda ash exported from the USA, primarily as costs at synthetic plants were
below the norm in other regions, but also due its control of global shipping.
Input costs for synthetic soda ash plants are very unlikely to fall back
to early-2000s levels, and will in all probability increase; the lower-cost
of natural soda ash production could therefore present an opportunity for
producers in the USA, Kenya and Turkey to restore and/or increase market
share in deep-sea markets, which continue to grow. Exports of lower-cost soda
ash from Turkey are likely to put pressure on higher-cost synthetic producers
in Europe, with some capacity rationalisation expected in Europe in the
near-term also.
Soda ash prices tracking energy costs
Energy prices rose significantly in late 2007/early 2008, increasing
input costs at both natural and synthetic soda ash plants, the latter being
notably more energy-intensive. Rising input costs caused prices of soda ash
to increase across all regions between 2006 and 2008. The downturn in demand
in 2009 prompted producers to drop prices accordingly, but in general these
lagged the fall in the price of energy as most sales are made on long-term
contracts.
Prices reached a floor in late 2009/early 2010 when new contracts were
being negotiated, but are unlikely to fall further as energy costs remain
high compared to the early-2000s. In the short-term, prices will continue to
track energy costs and could be back at 2008 levels by 2015. Any upside in
pricing will come from a return to high utilisation rates; however, capacity
seems more than plentiful to meet demand in the period to 2015 and increased
competition between suppliers could prevent significant price rises.
Note to editors
The report contains 402 pages, 179 tables and 178 figures. It provides a
detailed review of the industry, with subsections on the activities of the
leading producing companies. It also analyses consumption, trade and prices.
For further information or a review copy of this report, please contact
Robert Baylis (robert@roskill.co.uk). To receive press releases via email,
please contact Prakash Ramachandran (prakash@roskill.co.uk).
Table of Contents
Page
1 Summary 1
2 Occurrence, extraction and processing of soda ash 7
2.1 Occurrence of natural soda ash 8
2.2 Extraction of natural soda ash 10
2.2.1 Trona extraction in the Green River Basin 10
2.2.2 Trona extraction at Lake Magadi 11
2.2.3 Brine extraction at Searles Lake and Sua Pan 11
2.2.4 Nahcolite extraction in the Piceance Creek Basin 12
2.2.5 Trona and nahcolite extraction in China 12
2.3 Natural soda ash processing 12
2.3.1 Monohydrate process 13
2.3.2 Sesquicarbonate process 14
2.4 Synthetic soda ash 14
2.4.1 Solvay process 14
2.4.2 Hou (Ammonium Chloride Co-production or Dual) process 18
2.4.3 New Asahi Process 19
2.4.4 Akzo Dry Lime Process 20
2.4.5 Nepheline syenite process 20
2.5 Production costs 22
2.5.1 Solvay process 23
2.5.2 Hou process 27
2.5.3 Natural soda ash 28
3 World soda ash production capacity 32
3.1 Soda ash production capacity by region 32
3.2 Soda ash production capacity by company and country 34
3.2.1 Natural soda ash production capacity 35
3.2.2 Synthetic soda ash production capacity 36
3.3 Recent changes in soda ash production capacity 39
3.4 Outlook for soda ash production capacity 42
4 World production of soda ash 46
4.1 Production of soda ash by region 46
4.2 Production of soda ash by country 47
4.3 Production of soda ash by company 50
4.4 Production of soda ash by type 52
4.5 Operating rates by region 53
4.6 Outlook for soda ash supply 56
5 Soda ash production by country 62
5.1 Argentina 62
5.1.1 Alcalis de la Patagonia (ALPAT) 62
5.2 Australia 63
5.2.1 Penrice Soda Products Ltd. 64
5.3 Austria 65
5.4 Bangladesh 66
5.5 Belarus 66
5.6 Belgium 66
5.6.1 BASF Antwerpen NV 67
5.6.2 Solvay SA 67
5.7 Bosnia & Herzegovina 69
5.7.1 Sisecam Soda Lukavac 70
5.8 Botswana 70
5.8.1 Botswana Ash 71
5.9 Brazil 72
5.9.1 Compania Nacional de Alcalis 73
5.1 Bulgaria 74
5.10.1 Solvay Sodi AD 74
5.11 Canada 75
5.12 China 76
5.12.1 Production 76
5.12.1.1 Production by province 77
5.12.1.2 Production by company 78
5.12.2 Production methods 80
5.12.3 Soda ash grades 81
5.12.4 Trade in soda ash 82
5.12.5 Future trends 84
5.12.6 Synthetic soda ash producers in China 84
5.12.6.1 Shandong Haihua Group Co. Ltd. 85
5.12.6.2 Tangshan SanYou Chemical Co. Ltd. 86
5.12.6.3 Hubei Shuanghuan Science & Technology Co. Ltd. 88
5.12.6.4 Bohai Chemical Tianjin Soda Plant 88
5.12.6.5 Nanjing Chemical Industry Co. Ltd. (NCI) 89
5.12.6.6 Sichuan Leshan Hebang Chemical Co. Ltd. 90
5.12.6.7 Qinghai Soda Co. Ltd. 90
5.12.6.8 Qingdao Soda Ash Industry 90
5.12.6.9 Dahua Group Dalian Chemical Industry Co. Ltd. 91
5.12.6.10 Jiangsu Debang Chemical Industrial Co. Ltd. 92
5.12.6.11 Honghe Chemical Industry Co. Ltd. 92
5.12.6.12 Kunshan Jingang Industry Group 92
5.12.6.13 Jiangsu Huachang Chemical Co. Ltd. 93
5.12.6.14 Potential new synthetic soda ash producers in China 93
5.12.7 Natural soda ash producers in China 93
5.12.7.1 Henan Xinyang Tongbai Anpeng Soda Mine Co. Ltd. 94
5.12.7.2 Mengxilian Chemical Industry Co. Ltd. 95
5.12.7.3 Tongbai Haijing Alkali Industry Co. Ltd. 95
5.12.7.4 Inner Mongolia Jilantai Jijie Chemical Co. Ltd. 95
5.12.7.5 Inner Mongolia Yuan Xing Energy Co. Ltd. 95
5.12.7.6 Inner Mongolia Wuhai Chemical Co. Ltd. 96
5.12.7.7 Inner Mongolia Ihju Chemical Import and Export Ltd. 96
5.13 Czech Republic 97
5.14 Egypt 97
5.14.1 Solvay Alexandria Soda 97
5.15 Ethiopia 98
5.15.1 Abjata Soda Ash Share Company (ASASC) 98
5.16 France 99
5.16.1 Novacarb 100
5.16.2 Solvay Carbonate France 101
5.17 Germany 101
5.17.1 Solvay Soda Deutschland GmbH 103
5.17.2 Sodawerk Stassfurt GmbH & Co. KG 104
5.18 India 104
5.18.1 Tata Chemicals Ltd. 108
5.18.2 Nirma Ltd. 110
5.18.3 Gujarat Heavy Chemicals Limited 111
5.18.4 Dhrangadhra Chemical Works 112
5.18.5 Tuticorin Alkali Chemicals & Fertilisers Ltd. 113
5.19 Indonesia 114
5.2 Iran 116
5.20.1 Kaveh Soda 116
5.20.2 Shiraz Petrochemical Co. 117
5.20.3 Sulfurin Co. 117
5.21 Italy 117
5.21.1 Solvay Chimica Italia SpA 119
5.22 Japan 119
5.22.1 Central Glass Co., Ltd. 121
5.22.2 Tokuyama Corp. 122
5.23 Kazakhstan 122
5.24 Kenya 123
5.24.1 Magadi Soda Co. 124
5.25 Malaysia 125
5.26 Mexico 126
5.26.1 Industria del Alcali SA de CV 127
5.26.2 Tronamex SA de CV 127
5.27 Netherlands 128
5.27.1 Brunner Mond BV 129
5.28 North Korea 130
5.28.1 Sunchon Vinalon 130
5.29 Oman 130
5.3 Pakistan 130
5.30.1 ICI Pakistan 132
5.30.2 Olympia Chemicals Ltd. 132
5.31 Poland 133
5.31.1 Soda Polska Ciech Sp. 134
5.32 Portugal 135
5.32.1 Solvay (Produtos Quimicos) 136
5.33 Romania 136
5.33.1 Uzinele Sodice Govora 138
5.33.2 GHCL Upsom Ocna Mures 138
5.34 Russia 139
5.34.1 Soda Sterlitamak 142
5.34.2 Berezniki Soda Plant 142
5.34.3 Achinsk Alumina Refinery (AGK-Rusal) 143
5.34.4 Pikalevo Alumina Plant 144
5.35 Saudi Arabia 145
5.36 South Africa 146
5.37 South Korea 147
5.38 Spain 148
5.38.1 Solvay (Electrolisis de Torrelavega AEI) 150
5.39 Taiwan 151
5.4 Tanzania 151
5.41 Thailand 152
5.42 Turkey 153
5.42.1 Soda Sanayii AS 155
5.42.2 Eti Soda AS 156
5.42.3 Rio Tur Madencilik 156
5.43 Turkmenistan 156
5.44 Ukraine 156
5.44.1 Crimsoda 158
5.44.2 JSC Lisichansk Soda 159
5.45 UK 159
5.45.1 Brunner Mond 161
5.46 USA 162
5.46.1 Production of soda ash from trona in the USA 165
5.46.1.1 Trona mining royalty issues in the USA 168
5.46.1.2 FMC Wyoming Corp. 169
5.46.1.3 General Chemical (Soda Ash) Partners 170
5.46.1.4 OCI Chemical Corp. 171
5.46.1.5 Solvay Chemicals Inc. 172
5.46.1.6 Church & Dwight Co. Inc. 173
5.46.1.7 Wold Trona Co. 173
5.46.2 Production of soda ash from nahcolite in Colorado 174
5.46.2.1 American Soda LLP 174
5.46.2.2 Natural Soda Inc. 175
5.46.3 Production of soda ash from trona in California 176
5.46.3.1 Searles Valley Minerals Inc. (SVM) 176
5.46.3.2 Rio Tinto Borax 177
5.47 Uzbekistan 177
5.47.1 Kungrad Soda Plant 177
6 International trade in soda ash 179
6.1 World exports of soda ash 179
6.2 World imports of soda ash 181
6.3 Regional trade in soda ash 183
6.3.1 Soda ash trade from North America 185
6.3.2 Soda ash trade to/from East/Southeast Asia 187
6.3.3 Soda ash trade to/from Eastern Europe 189
6.3.4 Soda ash trade to/from Western Europe 191
6.3.5 Soda ash trade to/from South Asia 194
6.3.6 Soda ash trade from the CIS 196
6.3.7 Soda ash trade to/from Africa 197
6.3.8 Soda ash trade to/from the Middle East 199
6.3.9 Soda ash trade to/from other regions 201
6.4 Transport costs 202
7 World consumption of soda ash 208
7.1 Consumption of soda ash by region 208
7.2 Consumption of soda ash by country 209
7.3 Consumption of soda ash by end use 211
7.4 Consumption of soda ash in East and Southeast Asia 214
7.5 Consumption of soda ash in North America 216
7.6 Consumption of soda ash in Europe 218
7.7 Consumption of soda ash in the CIS 219
7.8 Consumption of soda ash in South Asia 219
7.9 Consumption of soda ash in other regions 220
7.1 Outlook for soda ash demand to 2015 220
8 Use of soda ash in glass 225
8.1 Manufacture of glass 226
8.1.1 Specifications for soda ash used in glass 227
8.1.2 Substitution of soda ash in glass 228
8.1.2.1 Dolomite 228
8.1.2.2 Feldspar and nepheline syenite 229
8.1.2.3 Other raw materials 229
8.1.2.4 Cullet 230
8.2 Production of glass by region 231
8.2.1 Production of glass in East/Southeast Asia 231
8.2.1.1 China 232
8.2.1.2 Japan 238
8.2.1.3 Indonesia 240
8.2.1.4 Taiwan 241
8.2.1.5 South Korea 242
8.2.1.6 Other East/Southeast Asia 242
8.2.2 Production of glass in Europe 244
8.2.3 Production of glass in North America 249
8.2.4 Production of glass in South Asia 251
8.2.5 Production of glass in the CIS 254
8.2.6 Production of glass in the Middle East 257
8.2.7 Production of glass in South and Central America 260
8.2.8 Production of glass in Africa 261
8.2.9 Production of glass in Oceania 264
8.3 Production of glass by type 264
8.4 Container glass 265
8.4.1 Production of container glass 265
8.4.2 Producers of container glass 267
8.4.2.1 Owens Illinois (O-I) 268
8.4.2.2 Saint-Gobain 269
8.4.3 Demand for container glass 269
8.4.4 Lightweighting in container glass 272
8.4.5 Alternative packaging materials 273
8.4.5.1 Competition from PET 274
8.4.5.2 Competition from aluminium and tinplate 276
8.4.6 Recycling 278
8.4.7 Outlook for container glass 281
8.5 Flat glass 283
8.5.1 Production of flat glass 284
8.5.2 Producers of flat glass 284
8.5.2.1 Asahi Glass 286
8.5.2.2 NSG Pilkington 287
8.5.2.3 Saint-Gobain 289
8.5.2.4 Guardian Industries 289
8.5.2.5 Taiwan Glass 290
8.5.2.6 PPG 291
8.5.3 Demand for flat glass 291
8.5.3.1 Demand for flat glass in construction 293
8.5.3.2 Demand for automotive glass 294
8.5.4 Recycling 296
8.5.5 Outlook for flat glass 297
8.6 Fibreglass 299
8.6.1 Manufacture of textile-grade fibreglass 300
8.6.2 Manufacture of insulation-grade fibreglass 301
8.6.3 Production of fibreglass 301
8.6.4 Producers of fibreglass 304
8.6.4.1 Owens Corning 305
8.6.4.2 Saint-Gobain 306
8.6.4.3 PPG 308
8.6.4.4 Johns Manville 308
8.6.5 Demand for fibreglass 309
8.6.5.1 Demand for textile-grade fibreglass 309
8.6.5.2 Demand for insulation-grade fibreglass 311
8.6.6 Outlook for fibreglass demand 312
8.7 Speciality glass products 314
8.7.1 Glassware 314
8.7.2 Display panel glass 315
8.7.2.1 CRT glass production 317
8.7.2.2 FPD glass production 319
8.7.2.3 Outlook for display glass 320
8.7.3 Optical fibres 322
8.8 Consumption of soda ash in glass 322
8.8.1 Outlook for soda ash demand in glass 326
9 Use of soda ash in sodium chemicals 329
9.1 Sodium silicates 329
9.1.1 Manufacture of sodium silicates 329
9.1.2 Production of sodium silicates 330
9.1.3 Producers of sodium silicates 331
9.1.4 Consumption of sodium silicates 337
9.1.4.1 Use of sodium silicates in detergents 338
9.1.4.2 Use of sodium silicate in speciality silicas production 339
9.1.5 Future demand for sodium silicates 341
9.2 Sodium tripolyphosphate (STPP) 342
9.2.1 Producers of STPP 343
9.2.2 Markets for STPP 345
9.2.3 Future demand for STPP 347
9.3 Sodium bicarbonate 347
9.3.1 Producers of sodium bicarbonate 349
9.3.2 Production of sodium bicarbonate 352
9.3.3 World consumption of sodium bicarbonate 353
9.3.4 Future demand for sodium bicarbonate 354
9.4 Sodium percarbonate 354
9.5 Sodium chromate and dichromate 355
9.5.1 World production capacity for chromium chemicals 356
9.5.2 Markets for chromium chemicals 357
9.5.3 Future demand for chromium chemicals 358
9.6 Other sodium chemicals 359
9.6.1 Caustic soda 359
9.6.2 Sodium sesquicarbonate 360
9.6.3 Sodium carbonate monohydrate/decahydrate 361
9.6.4 Sodium hexacyanoferrate 361
9.7 Consumption of soda ash in sodium chemicals 362
9.7.1 Outlook for soda ash demand in chemicals manufacture 363
10 Use of soda ash in soaps and detergents 365
10.1 Manufacture of soaps and detergents 365
10.2 Soap and detergent production 367
10.3 Consumption of soda ash in soaps and detergents 368
10.4 Outlook for soda ash demand in soaps and detergents 369
11 Use of soda ash in other applications 371
11.1 Use of soda ash in metals and mining 371
11.1.1 Lead smelting 372
11.1.2 Alumina production 372
11.1.3 Strontium carbonate production 373
11.1.4 Lithium carbonate production 375
11.1.5 Calcium bentonite conversion 376
11.1.6 Bromine production 377
11.1.7 Uranium production 377
11.2 Use of soda ash in water treatment 378
11.3 Use of soda ash in flue gas desulphurisation 379
11.4 Use of soda ash in pulp and paper 381
11.5 Use of soda ash in drilling fluids 383
11.6 Use of soda ash in electroplating 384
11.7 Use of soda ash in hydrogen sulphide recovery 384
11.8 Use of soda ash in foundry sands 385
11.9 Other uses of soda ash 385
12 Prices of soda ash 386
12.1 Soda ash prices in the USA 386
12.2 Soda ash prices in Europe 391
12.3 Soda ash prices in China 395
12.4 Soda ash prices in India 397
12.5 Comparison of US, Chinese and Indian soda ash prices 398
12.6 Soda ash prices in other countries 399
12.7 Outlook for soda ash prices 400
Soda Ash: Market Outlook to 2015 (11th edition, 2010) is available at
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Leopold Road, London SW19 7BB, England. Tel: +44-20-8944-0066.
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