SODA ASH INDUSTRY OVERVIEW
Soda ash is a small grained crystalline or powdered chemical, sodium carbonate (Na2CO3). It is produced synthetically from salt and limestone or from natural sodium carbonate minerals such as trona and nahcolite.
Soda ash is a basic chemical used in the manufacture of industrial, commercial and chemical products. This industry is one of the world's fundamental businesses whose product touches almost every human being on a daily basis. Soda ash is produced in thirty-one countries at one hundred fifteen sites. Present annual world consumption/production of soda ash is 35 million metric tons. At an average delivered price of US$160/metric ton, this represents US$5 billion in world trade. World production has fluctuated only about 10% in the last 15 years. Present world soda ash production capacity is approximately 45 million metric tons indicating capacity utilization is approximately 78% on a global basis.
The important market driver for continued strong or increased exports of soda ash is continued growth of developing countries, especially in Asia and Latin America. Improving third world economies, such as the Chinese economy, are strong consumers of soda ash. These countries consume a large amount of soda ash because they are opening up to higher levels of economic consumption such as increased window glass, extended used of glass containers, more automobiles and washing machines which use powdered detergents. All of these applications are primary soda ash markets. Almost all countries in Asia, the Pacific Rim and Latin America fit this profile.
In contrast, the world's most developed economies, the US, most of Europe and Japan have mature soda ash markets which grow little but are very unlikely to decline significantly. From the demand/consumption side, all indicators point to continued growth worldwide for the extended period.
World soda ash supply has grown steadily over a long period dominated by US, Chinese and European soda ash producers. Industry observers expect at least two important plant closures, in South Korea and in Brazil, that will present increased opportunity for soda ash exporters.