Caustic Potash 

*Thousands of short tons per year of caustic potash (potassium hydroxide, KOH). Commercial production is usually by electrolysis of potash (potassium chloride) using mercury or membrane cells. Caustic soda may be made in the same cells.

Vulcan completed a plant expansion of 25 percent in 2000, raising capacity at Port Edwards, Wisc., to 80 thousand short tons.

Profile last published 9/18/00; this revision 7/15/02.

DEMAND

2000: 472 thousand short tons; 2001: 485 thousand short tons; 2005: 515 thousand short tons, projected. Demand equals production plus imports (2000: 21 thousand short tons; 2001: 29 thousand short tons) less exports (2000: 44 thousand short tons; 2001: 66 thousand short tons).

GROWTH

Historical (1996 - 2001): 2.9 percent per year; future: 1.5 percent per year through 2005.

PRICE

Historical (1996 - 2001): High, $18.50 per cwt., list, liq., 45 percent basis tanks, ex-terminal; low, $15.25 per cwt., same basis. Current: $18.50 per cwt., same basis.

USES

Potassium carbonate, 28 percent; potassium phosphates (including tetrapotassium pyrophosphate), 10 percent; potassium soaps and detergents, 8 percent; other potassium chemicals (including potassium acetate, cyanide, permanganate and citrate), 15 percent; liquid fertilizers, 8 percent; agricultural chemicals, 5 percent; neutralization agents, 4 percent; synthetic rubber, 3 percent; batteries, 3 percent; photography, 3 percent; food, 3 percent; petroleum, 3 percent; miscellaneous, 7 percent.

STRENGTH

The market for caustic potash has tightened with production now at 90 percent of capacity, and producers have raised prices a couple of time over the past two years. Demand remains strong for potassium carbonate in liquid dishwashing detergents and specialty fertilizers, and for potassium phosphate, also used for detergent builders and in water treatment chemicals. Potassium phosphate, which represents 10 percent of the caustic potash market, will grow at 4.5 percent in the next several years.

WEAKNESS

The leading use (about 75 percent) for potassium carbonate is the manufacture of glass for cathode ray tubes, used in televisions and computer monitors. This sector had been growing at 5 percent annually in recent years, but with the softened economy and introduction of flat panel displays, has fallen to about 2.5 percent.

OUTLOOK

Caustic potash is the largest-volume nonfertilizer potassium chemical. As a base, it is stronger than caustic soda and its salts have greater solubility. But, because it is more expensive to manufacture, its applications are limited to those circumstances where these characteristics are needed, or where the potassium cation is required. The steady growth of these application segments, however, has producers contemplating modest expansions, especially with current capacity utilization of 90 percent, and rising. Caustic potash growth through 2005 is forecast at 1.5 percent annually.

HISTORICAL DATA