Borates

PRODUCER

CAPACITY*

American Borate, Lathrop Wells, Nevada

22,000

Fort Cady Minerals, Newberry Springs, Calif.

4,400

IMC Chemicals, Trona, Calif.

30,300

IMC Chemicals, Westend, Calif.

90,750

InCide Technologies, Pheonix, Arizona

37,400

U.S. Borax, Boron, Calif.

880,000

Total

1,064,850

 

*Short tons per year of boron minerals and refined primary borate chemicals, boron oxide (B2O3) basis. Principal chemicals are borax pentahydrate, anhydrous borax, borax decahydrate and boric acid. American Borate and Fort Cady Minerals only produce mineral product. American Borate also markets Turkish borates in the U.S.

 

U.S. Borax is a subsidiary of Rio Tinto, PLC (London, U.K.). The company is increasing capacity at Boron, Calif. by 22,000 tons by the end of this year, and another 77,000 to 88,000 tons by 2005.

 

In 1998 IMC Global acquired the Trona and Westend, California mining properties from North American Chemical, and formed IMC Chemicals. IMC Global is now seeking a buyer for this subsidiary.

 

Profile last published 10/7/00.; this revision, 8/25/03.

 

DEMAND

2001: 605 thousand short tons; 2002: 568 thousand short tons; 2006: 690 thousand short tons, projected. Demand equals production plus imports (2001: 64 thousand short tons; 2002: 45 thousand short tons) less exports (2001: 273 thousand short tons; 2002: 221 thousand short tons).

 

GROWTH

Historical (1997 - 2002): -1.1 (negative) percent per year; future: 0.5 percent per year through 2006.

 

PRICE

Historical (1997 - 2002) High, $905 per ton, borax, technical, anhydrous, 99 percent bulk, list, f.o.b. works; low, $819, same basis. Current: $900 to 950, same basis.

 

USES

Glass fiber insulation, 32 percent; textile glass fiber, 16 percent; soaps, detergents and bleaches, 10 percent; non-fibrous borosilicate glass and ceramics, 10 percent; agriculture, 7 percent; flame retardants, 6 percent; enamels and glazes, 2 percent; miscellaneous, 17 percent.

 

STRENGTH

Demand for refined borates, especially boric acid and sodium borates, is doing moderately well at present. Market conditions are positive, with prices for borates steady, though producers say they have not quite kept up with rising production costs.

 

New housing construction is up more than 6 percent over the same time last year, being driven by low interest rates. This contributes to a steady demand for boron minerals and chemicals in glass fiber insulation and textile glass fibers.

 

Novel applications are being developed for borate chemicals in glass, ceramics and energy. These, however, are still small in size but could produce significant demand sometime in the future.

 

WEAKNESS

Manufacturers of textile glass fibers have developed more efficient methods to use boron as well a boron-free glass fibers, resulting in overall lower boron consumption per unit of fiber produced.

 

Export volumes have declined to half of their size only two to four years ago, as other producing countries have added capacity to compete in world trade.

 

OUTLOOK

The modest future growth of borates, 0.5 percent, is anticipated to be provided by a continuing healthy housing construction industry. Here the growth comes principally from glass fiber insulation. The other major application segments are not growing, but they are stable. Though there are several new niche application areas of growth, these are too small to significantly influence overall market growth in the short term.

 


HISTORICAL DATA

 

Year

Demand

thousands of short tons, B2O3

List Price

$ per ton, borax, technical, anhydrous, 99 percent bulk, list, f.o.b. works

1997

604

819

1998

587

819

1999

618

819

2000

546

859

2001

605

859

2002

568

905

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