Abstract
Asian salt production increased rapidly since 2003
Rapid industrialisation in China has instigated a period of growth in the salt
industry that has not been seen for many years, with world production reaching
256Mt in 2006. Since 2003, global output has risen at an average rate of
nearly 5.2%py, while Asian output has risen by over 12.3%py. However, the rise
in Asian output has not been sufficient to satisfy all the regional demand and
the shortfall has largely been satisfied by Australian production, which rose
at an average rate over 5.5%py from 2000 to 2006. The principal driver behind
increased production has been growing demand from the Chinese chemical
industry and, to a lesser extent, from population growth. Over the coming five
years, global demand is expected to grow at an average of 3%py to reach over
300Mt in 2012. There are four main end uses for salt; chlorine and caustic
soda manufacture in chlor-alkali industry (38.5%), manufacture of synthetic
soda ash (20%), edible salt for human consumption (17.5%) and de-icing salt
(14%). End-use patterns vary from a predominance of chemical applications in
highly industrialised countries to a market dominated by the use of salt in
food and agriculture in less developed countries.
The key trends, issues and developments in the market are analysed in this
major new report from Roskill. It provides a clear insight into the industry
and its trends, and an authoritative analysis of the prospects for the future.
What the report gives you
- Independent, in-depth research and analysis
- Essential market intelligence for successful business planning
- Detailed survey of production and processing in 113 countries
- Up-to-date profiles of the activities of over 200 salt producing companies
and potential projects, including including Dampier Salt Ltd, K S, China
National Salt Industry, Cargill and Solvay
- Forecasts for end-use consumption and world supply and demand
Report highlights
In common with many other parts of the chemical mineral sector,
rationalisation and restructuring of the salt industry has continued. If the
Chinese industry is considered as one enterprise, nine companies now control
around a third of global production capacity. The company with most production
capacity is China National Salt Industry with an estimated 18.7Mtpy, followed
by K S (16.6Mtpy), Cargill (14.0Mtpy) and Compass Minerals (13.7Mtpy).
The chlor-alkali industry co-produces chlorine and caustic soda by
electrolysing a salt solution. Although chlorine has a number of end uses, the
most important is as a raw material in the manufacture of polyvinyl chloride
(PVC), a polymer with significant applications in construction. During the
period 2000 to 2006, chlorine capacity in China increased by around 7Mtpy
while elsewhere it fell by around 1Mtpy. By 2012, a further 9Mtpy is forecast
to come on-stream worldwide, most of this increase (8.1Mtpy) is expected to be
installed in China.
Consumption of dietary salt is likely to grow in line with world and regional
populations. The largest increases are expected in Asia and Africa, where
largest growth in food consumption is projected. Total consumption of salt in
food is forecast to rise to 48Mtpy by 2012.
Soda ash is produced either from mined minerals, primarily trona, or by
chemical synthesis using the ammonia-soda process which uses salt as one of
its raw materials. Synthesis remains economically viable where the markets are
close to the production sites, and to locally available sources of salt and
limestone. The situation in China differs in that there is significant
co-product process capacity with ammonium chloride finding application as a
nitrogenous fertiliser. This, and the drive for self-sufficiency in an
essential raw material has led to substantial expansion of China' s synthetic
soda ash production. Global salt use for soda ash production in 2006 is
estimated at just over 50Mt.