Market Assessment

Sodium Sulfate (Na2SO4)

EXECUTIVE SUMMA !
Sodium sulfate, also known as disodium sulfate (Na2SO4), is an inorganic chemical that has several important industrial uses. It is produced from naturall occurring sodium! sulfate!"earing "rines or cr stalline evaporite deposits, and as a " product from different chemical processes, such as ascor"ic acid, "atter acid rec cling, "oric acid, cellulose, chromium chemicals, lithium car"onate, ra on, resorcinol, and silica pigments. #he " product sodium sulfate is considered a waste product "ut has marketa"ilit $ "oth t pes of sodium sulfate, however, have several important and useful applications in various consumer products, such as soaps and detergents, pulp and paper, and te%tiles. In North &merica the trend for Na2SO4 is somewhat negative. #he ma'or use of this chemical is as a filler for powdered laundr detergents. (owever, over the past decade, the use of li)uid detergents has increased in popularit which re)uires no sodium sulfate. In developing countries, the use of powdered detergents is graduall increasing due to the lower costs involved. *lo"al demand is e%pected to e%hi"it growth of 2+,- per ear in the near future as e%ports to .entral and South &merica increase to satisf the e%panding use of powdered detergents. & similar growth pattern is also e%pected in &sia, the /iddle 0ast and other developing countries. *rowth in developing countries where dr powder is t picall used instead of li)uid detergents is e%pected to "e a"ove *12 growth levels. .urrentl , 0urope and &sia constitute over 34- of the total consumed market for sodium sulfate. On the suppl side, .hina is the largest producer and e%porter of sodium sulfate. In 2445, .hina represented more than three!fourths of the glo"al capacit and more than 64- of the production. In North &merica, the closure of several plants has helped to eliminate the oversuppl situation the sodium sulfate market had faced in the past. #emporar suspensions of operations are also occurring as a reaction to the current glo"al economic downturn.

T EN"S
#he ma'orit of uses of sodium sulfate have shown flat or negative growth. #he ma'or use of sodium sulfate is as an inert filler for powdered laundr detergents. 7ith the growth of super!concentrated li)uid detergents which utili8es no sodium sulfate, the demand for powdered laundr detergents is on the decline. 9etween 2442 and 2446, the powder detergent product consumption in North &merica dropped " 44- while in 7estern 0urope, powdered detergent sales were down :4- (as compared to an annual growth rate of ;.,- for washing products as a whole). In the mid :<<4s the powder=li)uid detergent market was split 34=34. 9 244:, the market was 44=;4 and " 244<, li)uid detergent use is estimated at over 54- of the market. (owever, outside of the >.S. (e.g. &sia, South &merica), demand for powdered formulations has grown as it is less e%pensive than its li)uid counterparts. &ppro%imatel 54- of world sulfate use is for the dr powdered detergents due to the relativel larger populations in developing countries. .onsumption of sodium sulfate " the te%tile industr is apparentl strong. #raditionall , salt has "een used in the d eing process to separate organic contaminants, promote ?salting out@ of d estuff precipitates and "lending with d es to standardi8e concentrated d es. #he e)uipment used in this process utili8ed stainless steel, which was suscepti"le to corrosion "ecause of the salt. #he te%tile industr "egan su"stituting sodium sulfate for the salt which is not corrosive to the manufacturing e)uipment. Aoreign te%tile manufacturers, particularl .hina and /e%ico are importing sodium sulfate to meet demand re)uirements. In the d eing process, sodium sulfate is "lended with d es to standardi8e the concentration of the d es. 2rices for sodium sulfate ranged from B,4 per ton in :<64Cs increasing up to B::4 per ton from 2444!2444 and then to B:,4 per ton from 2443 until present.

USES
#he total value of natural and s nthetic sodium sulfate sold in the >S is estimated at >SB44 million as of Danuar 24:4. 0stimates of >.S. sodium sulfate consumption " end use (from the >S *eological Surve 1epartment or >S*S) is shown "elow. &s mentioned a"ove, the use of sodium sulfate in soap and detergents has decreased fairl significantl from 4;- (of total use) in 2444 to ,3- in 24:4. #aundr$ "eter%ents #he largest use is as filler in powdered home laundr detergents for Na2SO4. In North &merica, this use is waning as domestic consumers are increasingl switching to compact or li)uid detergents that do not include sodium sulfate. &t low temperatures, Na2SO4 is nonreactive$ "ecause of this and given its relativel low cost, it is used as filler in household soaps and detergents. 1etergents average a"out 24Na2SO4, "ut some grades have much higher content. 9esides adding "ulk to the detergent, the appearance of the detergent is improved due to the particle si8e and whiteness of the sulfate. &lso, handling characteristics and the detergentCs a"ilit to clean is improved. Manufa&ture of 'ood (ul) &nother formerl ma'or use for sodium sulfate, nota"l in the >S and .anada, is in the Eraft process for the manufacture of wood pulp. Sodium sulphate is used in the kraft process to digest wood chips. (owever, this process is "eing replaced " newer processes$ use of sodium sulfate in the >S and .anadian pulp industr declined from :.4 tons per ear in :<64 to onl appro%imatel :34,444 tons in 244;. Feduced consumption of saltcake " the pulp and paper industr contri"uted to part of this decline. Of the :24 kraft pulp and paper mills in the >S, onl a"out :2 continue to use sodium sulfate in the Eraft pulping process. #hese mills have switched to using chlorine dio%ide for the "leaching process that generates its own " product sodium sulfate. 2ulp mills have converted to o% gen!"ased chlorine dio%ide "ecause of environmental pro"lems associated with chlorine "ased "leaching agents, which have "een the traditional "leaching compounds used. *lass Industr$ #he glass industr provides another significant application for sodium sulfate, as the second largest application in 0urope. Sodium sulfate is used as a fining agent, to help remove small air "u""les from molten glass. It flu%es the glass, and prevents scum formation of the glass melt during refining. 2roperties of sodium sulfate help speed up the melting process in glassmaking. Its use reduces the tendenc for alkaline gas "u""les to form in the glass and provides a less e%pensive form of Na2O than soda ash. Sodium sulfate improves the working properties of high silica glasses. #he glass industr in 0urope has "een consuming from :<64 to 244; a sta"le ::4,444 tons annuall .

Manufa&ture of Te+tiles Sodium sulfate is important in the manufacture of te%tiles, particularl in Dapan, where it is the largest application. Sodium sulfate helps in GlevellingG, reducing negative charges on fi"res so that d es can penetrate evenl . >nlike the alternative sodium chloride, it does not corrode the stainless steel vessels used in d eing. #his application in Dapan and >S consumed in 244; appro%imatel :44,444 tons.

MA,O EVENTS (2--./2-0-)

244< + In earl 244<, Heo% .orporation, started production at its sodium sulfate deposit near 7hiteshore Iake in 2alo, Saskatchewan. #he .anadian industrial mineral producer had purchased the natural sodium sulfate deposit from /illar 7estern Industries Itd. in late 2446. #he operation has a production capacit of :44,444 tons per ear. #he compan signed a :4! ear contract to suppl sodium sulfate to a ma'or potassium sulfate fertili8er producer. 2445 ! In late 2446, a ma'or detergent manufacturer in India (Nirma) purchased a .alifornia natural sodium sulfate producer (Searles Jalle /inerals, a division of Sun .apital 2artners). #he >S ascor"ic acid producer, including its " product sodium sulfate facilit , ceased production in New Derse . & ra on plant in #ennessee also closed, reducing " product sodium sulfate availa"ilit . 9oth facilities had a com"ined sodium sulfate production capacit of a"out 6:,444 tons per ear. 2446 ! & .alifornia natural sodium sulfate producer (likel Searles Jalle /inerals) implemented a B4 per ton energ surcharge on all shipments of sodium sulfate in the third )uarter of 2446 due to escalating energ costs. 1omestic producers used the New Kork /ercantile 0%change (enr (u" (connects nine interstate and four intrastate gas pipelines) to "ase surcharge increases or decreases. 0ach )uarter, the surcharge is fi%ed using an average of three monthl spot prices taken on the :3th da of the month that precedes the "eginning of each )uarter. 244; ! 9oth >.S. and .anadian natural sodium sulfate producers implemented energ surcharges on all shipments of sodium sulfate due to escalating energ costs. 1omestic producers used the New Kork /ercantile 0%change (enr (u" to "ase surcharges on the :3th da of the month preceding the "eginning of each )uarter, whereas .anadian natural sodium sulfate operators used the Natural *as 0%change (&0.O) that "ased )uarterl surcharges on the &0.O monthl inde% average for the previous )uarter. 2443 ! & ma'or chemical compan in .hina and Indonesia completed construction of a natural sodium sulfate plant in Lishunhe, (ong8e .ount , in Diangsu 2rovince. #he facilit Cs annual capacit was 244,444 tons of anh drous sodium sulfate. .om"ined with an e%isting facilit that is a 'oint venture "etween a .hinese and Spanish natural sodium sulfate producer, the total annual production capacit in (ong8e .ount was 544,444 tons, esta"lishing that region as the worldCs leading sodium sulfate location.

"EMAN"
*lo1al market #he following pie chart shows world consumption of sodium sulfateM *lo"al demand is e%pected to e%hi"it growth of 2+,- per ear in the near future as e%ports to .entral and South &merica increase to satisf the e%panding use of powdered detergents. & similar growth pattern is also e%pected in &sia, the /iddle 0ast and other developing countries. *rowth in developing countries where dr powder is used t picall instead of li)uid detergents is e%pected to "e a"ove *12 growth levels. .urrentl , 0urope and &sia constitute over 34- of the total consumed market for sodium sulfate. #he .hinese market is the worldCs largest and is growing at over ,- annuall . .hina has the largest reserves of mira"ilite and has "een "uilding and e%panding capacities to meet glo"al demand. &s production costs are relativel lower than in the rest of the world, .hina has "ecome the ma'or supplier of sodium sulfate for glo"al consumption. /e%ico has "een a developing market for sodium sulfate latel mostl as a result of demand from the detergent sector. &long with production, e%ports to South &merica also grew steadil until 2443. 7ith increasing domestic demand, /e%ican e%ports have "een declining and imports have "een increasing for the past three to four ears. #he current market in North &merica is "alanced to slightl tight. 7ith the current economic downturn, there has "een an increase in consumption of sodium sulfate in the detergent sector in North &merica. In earl 244<, li)uid detergent producers reformulated their products " shifting from :L concentration to 2L concentration$ there were some producers that even went to ,L concentration. #his resulted in an increase in dr powder sales as some consumers went "ack to powdered products feeling that the were getting a "etter value for their purchase with dr powder than with concentrated li)uid detergents. 7ith increasing raw material prices, the need to lower costs to maintain margins has provided an impetus for the increased use of sodium sulfate. #his demand is e%pected to continue, at least in the short term. US Market &s shown "elow, the >S market for sodium sulfate has "een fairl sta"le over the past five ears. 2roduction has varied "etween 2<4,444!,24,444 tons per ear while consumption has varied "etween :<4,444!254,444 tons per ear (therefore the >S can produce enough sodium sulfate for their entire market). (owever, the long term trends are slightl negative as the "ulk of sodium sulfate is used in powdered detergents$ whereas customers in North &merica have "een shifting towards the use of li)uid detergents.

&ccording to the >S *eolog Surve department, import sources from the >S "etween 2443!2445 are as followsM .anada 6<-$ /e%ico::-$ .hina 4- and others ;-.

SU((#!
*lo1al (rodu&tion and Su))l$ &lthough data on mine production for natural sodium sulfate are not availa"le, total world production of natural sodium sulfate is estimated to "e a"out 4 million tons. #otal world production of " product sodium sulfate is estimated to "e "etween :.3 and 2.4 million tons. .hina is the largest producer and e%porter of sodium sulfate. Diangsu 2rovince is the worldCs largest sodium sulfate production "ase and is e%pected to produce over 4.5 million metric tons " 24:,. In 244,, Iautan (ong8e .hemical Industr "egan commercial production of the worldCs largest sodium sulfate plant in (ong8e .ount . .hinaCs production, consumption, and e%ports of sodium sulfate have "een increasing significantl in the past few ears. In 2445, .hina represented more than three!fourths of the glo"al capacit and more than 64- of the production. In North &merica, the closure of several plants has helped to eliminate the oversuppl situation the sodium sulfate market had faced in the past. #emporar suspensions of operations are also occurring as a reaction to the current glo"al economic downturn. In earl 244<, 0%ide at 9aton Fouge announced temporar suspension of operations and 0lementis at .astle (a ne declared force majeure "ecause of the shrinking econom . North &merican demand has "een decreasing in "oth the te%tile industr "ecause of the entr of cheaper imports and in the detergent industr as the demand for li)uid detergents that do not use sodium sulfate increases and demand for powdered detergents that use sodium sulfate decreases. Sodium sulfate resources are sufficient to last hundreds of ears at the present rate of world consumption. .ountries with significant reserves include the >S, .anada, /e%ico, Spain, #urke , 9otswana, .hina, 0g pt, Ital , /ongolia, Fomania, and South &frica. .ommercial production from >S resources is from deposits in .alifornia and #e%as. #he "rine in Searles Iake, .&, contains a"out 434 million tons of sodium sulfate resource, representing a"out ,3- of the lakeCs "rine. In >tah, a"out :2- of the dissolved salts in the *reat Salt Iake is sodium sulfate, representing a"out 444 million tons of resource. &n irregular, 2:!meter!thick mira"ilite deposit is associated with cla "eds 4.3 to <.: meters "elow the lake "ottom near 2romontor 2oint, >#. Several pla a lakes in west #e%as contain underground sodium!sulfate!"earing "rines and cr stalline material. Sodium sulfate also can "e o"tained as a " product from the production of ascor"ic acid, "atter rec cling, "oric acid, cellulose, chromium chemicals, lithium car"onate, ra on, resorcinol, and silica pigments. #he )uantit and availa"ilit of " product sodium sulfate are dependent on the production capa"ilities of the primar industries and the sulfate recover rates. Nort2 Ameri&an (rodu&tion and Su))l$ #he domestic natural sodium sulfate industr consisted of two producers operating two plants, one each in .alifornia and #e%as. Nine companies operating :: plants in < States

<

recovered " product sodium sulfate from various manufacturing processes or products, including "atter reclamation, cellulose, resorcinol, silica pigments, and sodium dichromate. &"out one!half of the total output was a " product of these plants in 244<. Aollowing is a list of the largest North &merican 2roducers of Sodium Sulfate (as of 244,). #otal production capacit for /e%ico and North &merica is appro%imatel :.4 million tons with 32;,444 tons from /e%ico, 2:,,444 from .anada and the remaining ;<<,444 tons from the >S&.

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CONC#USIONS
#here are several main conclusions that can "e drawn from this reportM #he most common uses for sodium sulfate in the >S areM filler for soaps and detergents (,3-), glass production (:5-) and pulp and paper (:3-). 2rices are fairl low for sodium sulfate at NB:,4 per ton. In the >S, production of Na2SO4 has "een appro%imatel ,44,444 tons per ear over the past 3 ears with consumption var ing "etween 244,444!254,444 tons. #herefore the >S produces more sodium sulfate than necessar and e%ports the e%cess product to &sia or South &merica. (owever, there are a small amount of imports into the >S (44,444!54,444 tons per ear) mostl from .anada (N54-) and /e%ico (N:4-). .apacit for sodium sulfate production in the >S is estimated at N644,444 tons per ear. (owever, as stated a"ove, the >S onl produces ,44,444 tons mostl for its own needs. #herefore >S producers are onl operating at less than 34capacit . #he trend in demand for Na2SO4 in North &merica is somewhat negative. #he ma'orit of sodium sulfate produced (,3-) is used as filler for powdered laundr detergents. (owever, in North &merica the use of powdered detergent is declining while the use of li)uid detergents (which re)uire no sodium sulfate) is increasing. In 244<, use of li)uid detergents is estimated to "e as high as 54- of the total detergent market (in the :<<4s it was evenl split). #he use of sodium sulfate in the North &merican pulp and paper industr has also declined significantl . Of the original :24 kraft pulp and paper mills in the >S, less than :2 continue to use sodium sulfate in the kraft pulping process. #he use of Na2SO4 in glass production as a fining agent to remove small air "u""les has sta ed relativel sta"le. Overall glo"al demand is increasing at a rate of 2!,- per ear. #his is due to increasing demand from developing countries in &sia and South &merica. 1r powder is used in those countries due to the lower cost. .hina is the largest consumer and producer of sodium sulfate. In 2445, .hina represented more than 63- of glo"al capacit and 64- of production. In North &merica, closure of several plants has helped with the oversuppl situation in sodium sulfate.

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