Sodium Bicarbonate        

*Short tons per year of sodium bicarbonate. All material is soda ash-based, with the exception of IMC's product, which is solution mined from nahcolite (natural sodium bicarbonate).

Rhodia halted production of sodium bicarbonate at its Chicago Heights, IL, facility in October, 1998. The company concluded that the plant could no longer remain cost-competitive and entered into a supply agreement with Church & Dwight for 80,000 tons per year.

Also in 1998, IMC acquired bicarbonate producer North American Chemical (Rifle, CO) - the only major US bicarbonate manufacturer to use nahcolite, or natural sodium bicarbonate, in its production - as part of its purchase of Harris Chemical. IMC recently expressed interest in selling this operation in order to concentrate on its core businesses in salt and fertilizers.

Church & Dwight has completed an expansion of its Old Fort, OH, sodium bicarbonate plant in the final quarter of 1999, which raised output by 40,000 tons/year, to 280,000 tons/year. The company is also planning a 40,000 ton addition to its Green River, WY, plant.

And FMC added an incremental 20,000 tons to its Green River, WY, plant in 1999.

A new nahcolite-based project is that of American Soda, a 60-40 joint venture between Williams Soda Products Company, part of the Williams Company (Tulsa, OK) and American Alkali (Parachute, CO), a privately held company. The first commercial shipments are expected in January, 2001. The initial capacity is given as 150,000 tons.

Another new nahcolite-based project is that of AmerAlia, which is reportedly developing a nahcolite-based sodium bicarbonate solution mine on its lease in Colorado's Piceance Creek Basin. AmerAlia plans to produce 50,000 tons per year at the site. Project timing is uncertain at this time and industry observers do not believe that project financing has been completed.

Profile last published 7/21/97; this revision 6/12/00.

DEMAND
1998: 504,000 short tons; 1999: 526,000 short tons; 2003: 615,000 short tons, projected. Demand equals production plus imports (1998: 15,000 s.t.; 1999: 16,000 s.t.) less exports (1998: 69,000 s.t.; 1999: 71,000 s.t.).

GROWTH
Historical (1994 - 1999): 3.5% per year; future: 4% per year through 2003.

PRICE
Historical (1994 - 1999): High, $22.80 per cwt., USP powder, regular grade, c.l., bags, frt. equald.; low; $20.80 per cwt., same basis. Current: $22.80 per cwt., same basis. Pricing is two tier with USP and food grades at the top (differentiated product), earning the biggest margins, and animal feed and industrial grades (non-differentiated) priced somewhat lower.

USES
Food, 32%; animal feed, 24%; cleaning products, 9%; pharmaceuticals and personal care, 9%; chemicals, 8%; water treatment, 6%; fire extinguishers, 2%; paint blast media, 2%; miscellaneous, 8%.

STRENGTH
Overall demand for sodium bicarbonate is growing by 4 percent per year, about 20,000 tons per year. Demand for some differentiated product, USP and food grades, is doing even better at 6%. Last year, Rhodia, with a nameplate capacity of 70,000 tons, withdrew from the bicarbonate business which tightened supplies.

WEAKNESS
The only apparent weak spot is the chemicals segment - growth is anticipated to be 1%.

OUTLOOK
The sodium bicarbonate market continues to be snug, with an effective capacity utilization rate above 95 percent. This will continue at least until new capacity come on-line early next year. Sodium bicarbonates new entrants are basing production on nahcolite, a naturally occurring form of sodium bicarbonate found in massive deposits in northwestern Colorado. It is cheaper to produce than conventional sodium bicarbonate, but applications are limited to low-priced feed and agricultural grades because of product impurity.