Soda Ash      

*Thousands of short tons per year of natural sodium carbonate (soda ash). Most soda ash is obtained from trona and sodium carbonate-rich brines. The world’s largest deposit of trona is in the Green River Basin of Wyoming.

American Soda is a 60/40 joint venture between Williams Companies and American Alkali, a privately held natural resource company. The production process is based on solution mining of nahcolite ore (natural sodium bicarbonate). The sodium bicarbonate solution coming from a solution mine at Meeker, is converted to soda ash, and piped as slurry to the finishing plant at Parachute. The company began production in October 2000. Williams is now looking for a buyer to take its 60 percent stake in the operation.

In January 1999, FMC purchased Tg Soda Ash’s 1,300 thousand ton soda ash mining and production facility in Granger, Wyo., adjacent to its Green River, plant. Elf Aquitaine of France formerly owned Tg Soda. In May 2001, FMC idled the Granger plant.

General Chemicals' U.S. soda ash facility is 51 percent owned by General Chemical Corp., 25 percent by the Anderson Group, and 24 percent by Tosoh Wyoming (Japan). General Chemical also owns and operates a 500 thousand-ton synthetic process soda ash plant at Amherstburg, Ontario, Canada. The plant, however, was idled in March 2001.

OCI Chemical Corp. is 51 percent owned by Oriental Chemical (Korea), and 49 percent by Union Pacific Resources. As part of a planned plant modernization program, OCI brought on-stream a new 800 thousand ton soda ash facility at Green River in early 1999. At the same time, 900 thousand tons of older capacity was mothballed to await improved market conditions.

Solvay Minerals is 80 percent owned by Solvay et Cie (Belgium) and 20 percent by Asahi Glass (Japan). In late 2000, 500 thousand tons of capacity was added to the Green River site.

In California, IMC Chemicals produces soda ash from the alkali brines of Searles Lake. IMC has been looking for a buyer for this business, since 1998.

Profile last published 6/5/00; this revision, 7/8/02.

DEMAND
2000: 7,031 thousand short tons; 2001: 6,819 thousand short tons; 2005: 7,025 thousand short tons, projected. Demand equals production plus imports (2000: 83 thousand short tons; 2001: 54 thousand short tons) less exports (2000: 4,295 thousand short tons; 2001: 4,593 thousand short tons).

GROWTH
Historical (1996 - 2001): -1.0 (negative) percent per year; future: 0.8 percent per year through 2005.

PRICE
Historical (1996 - 2001): High, $105 per ton, list, dense, bulk, carloads, f.o.b. Green River, Wyo.; low, $105 per ton, same basis. Current: $105 per ton, list, same basis. List prices, f.o.b. Searles Lake, Calif., have historically been $25 per ton more. Market prices are in a range of $80 to $100 per ton for large quantities.

USES
Glass, 50 percent (container, 24 percent; flat, 18 percent; fiber insulation, 4 percent; other glass, 4 percent); chemicals, 27 percent; soap and detergents, 11 percent; flue gas desulfurization, 2 percent; pulp and paper, 2 percent; water treatment, 1 percent; miscellaneous, 7 percent.

STRENGTH
The amount of overcapacity in the market, along with high operating costs, has driven producers to close or idle 2,700 thousand tons of capacity within the past two years. These moves were encouraged by the 1,300 thousand tons of new capacity which were commissioned by American Soda in late 2000. American Soda’s plant experienced difficulties, however, and the practical operating capacity is some 500 thousand tons below nameplate design. Thus, the market’s current operating capacity is about 3,200 thousand tons less than what otherwise might be there. The result is that the supply and demand sides in the market are coming into balance this year, although demand has fallen. With a more balanced market, producers have seen their price increases accepted, raising prices for off schedule soda ash by about $15 per ton since last fall.

WEAKNESS
Domestic demand for North American soda ash declined last year by 3 percent. Glass production was down for containers, due to bottle light weighting and plastics substitution (mostly PET), and for flat glass which is tied to construction and automobile production.

OUTLOOK
World soda ash consumption is forecast to grow at 2.5 percent annually because of growing demand for soda ash in developing nations, especially in the Far East and in South America. Exports will continue to be the most important market for increased US soda ash sales, increasing about 4 percent this year. Soda ash consumption in glass containers will probably continue to decline as plastic containers and new lightweight bottles displace glass and consequently, the raw materials for glass manufacture. Glass production, other than container glass, should grow at 3 percent per year as the economy improves. Soda ash growth is forecast to be 0.8 percent annually, through 2005.