2-8 June 2014

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ICIS Chemical Business
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35 www.icis.com
ASIA CHEMICAL PROFILE
ASIA SODA ASH PRICES
180
190
200
210
220
230
240
250
May
2014
May
2013
$/tonne, spot
Dense FOB China main port
Light: FOB China main port
HELEN LEE FIRST ASIA SODA ASH PROFILE
Read all of the latest news concerning soda
ash and a wide range of global commodity
chemicals at icis.com/news
USES
Soda ash is mainly used in the chemical indus-
try, glass-manufacturing, metallurgy, paper-
manufacturing, textile, dyeing, synthetic deter-
gent, soap, washing powder, water treatment,
as well as in the petrochemical industry.
Flat glass comprises 28% of global demand
with container glass a close second at 23%.
Detergents take up 12% whereas chemicals
and metallurgy take up 6% each. Silicates ac-
count for 4% and bre glass, 1%. The remain-
ing 20% is made up of other applications
such as water treatment.
SUPPLY/DEMAND
Asias soda ash demand totals 21.5m tonnes/
year versus a production capacity of 29.3m
tonnes/year. On the demand side, the diversi-
ed markets for soda ash are mainly driven by
GDP growth rates. The at glass industry is
80% linked to consumption by construction
in emerging countries with the rest linked to
the automotive industry. Increasing popula-
tion and the growing consumption of deter-
gent and container glass in emerging coun-
tries are the other market drivers. Chinas
demand growth is projected to be about 7-8%
per annum.
PRICES
Chinas soda ash prices were on an upward
trend during the latter half of 2013, buoyed by
reduced supply on a combination of curtailed
output, planned and unplanned plant outag-
es during the second and third quarter cou-
Soda ash
Company Location Capacity
Shandong Haihua
Alkali & Resin
Shandong, China 3000
Henan Jinshan Henan, China 1700
Nanjing Chemical
Industries, Lianyun-
gang Soda Ash Plant
Jiangsu, China 1300
Tongbai Anpeng
Soda Mine
Henan, China 1200
Qinghai Alkali
Industry Co
Qinghai, China 1200
Leshan Hebang sichuan, china 1200
Hubei Shuanghuan
Science & Technology
Hubei, China 1000
Qinghai Kunlun Alkali
Industry
Qinghai, China 1000
Shandong Haitian
Bio-Chemical
Shandong, China 1000
Tata Gujarat, India 975
GHCL Gujarat, India 850
Chongqing Yihua
Chemical
Chongqing, China 800
Qingdao Soda Ash
Industrial
Shandong, China 800
NOTE: Top 13 plants listed by capacity
ASIA SODA ASH CAPACITY
000 TONNES/YEAR
pled with buoyant demand from the at glass
sector in the fourth quarter of 2013.
Soda ash producers had reduced their
plant operating rates to an average of around
80% capacity during the second and third
quarter on the back of poor margins owing to
supply length in the rst quarter of 2013.
The sustained erosion of prices of the ammo-
nium chloride (AC) by-product in China further
prompted Hou process soda ash producers to
reduce operating rates at their plants, which re-
sulted in a rebound in prices of the light grade
soda ash from late March to early May 2014.
Prices began to erode in the rst quarter of 2014
on weakened demand from the at glass sector
following measures by the Chinese government.
Chinas Industry and Information Technol-
ogy Ministry (MIIT) in February 2014 en-
forced tougher measures which included the
banning of new projects in steel, cement, elec-
trolytic aluminum, at glass and shipbuilding
industries before 2017, while gradually elimi-
nating existing projects that were found to be
below standard.
TECHNOLOGY
More than half of Asian production capacity
comprises of the Hou process versus the nor-
mal synthetic process. The natural process
makes up a marginal proportion of Asias
soda ash production method. In the Solvay
process (or ammonia soda process) of soda
ash production, the only major inputs are salt,
limestone and thermal energy and its only
major byproduct is calcium chloride, which
is sold as road salt. Calcium chloride can be
produced directly from limestone, but large
amounts are also produced as a by-product of
the Solvay process.
Calcium Chloride is used as a desiccant and
for de-icing and freezing point depression. Cal-
cium chloride is also used to increase the hard-
ness in swimming pools. Other uses can be
found in food, medicine, concrete, additives in
plastics and fabric softeners.
In the Hou process of soda ash production,
the rst few steps are the same as the Solvay
process. However, the calcium chloride is
supplanted by ammonium chloride. The by-
product ammonium chloride can be rened,
used as a fertilizer and may have greater com-
mercial value than calcium chloride, thus re-
ducing the amount of waste.
OUTLOOK
A heavy turnaround season at several China-
based soda ash plants in the second quarter
of 2014 contributed to a rmer outlook.
Some sources said supply may remain snug
into July whereas weak demand from the at
glass sector owing to government policies
had already been factored into the down-
ward trend of soda ash prices in the rst half
of the year, they added.
The downward trend in dense grade soda
ash prices in the Chinese domestic market sub-
sequently halted in May. A producer indicat-
ed that it may raise prices by the end of the
month for June shipments because its supply
of contractual soda ash volumes was limited.
On the contrary, the upward trend on pric-
es of the light grade abated by early May, fol-
lowing the recent rebound from late March to
early May on limited supply owing to cur-
tailed output.
ICB_020614_034-303.indd 35 29/05/2014 17:05