Industrial Minerals / The Economics of Salt, 12th edition 2007

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.

Report highlights

• 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.
• 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).
• 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.