Soda Ash – Product Profile

Pankaj Dutia

Introduction
Sodium carbonate (also known as washing soda, soda ash and soda crystals, and in the
monohydrate form as crystal carbonate), Na2CO3, is the water-soluble sodium salt of carbonic
acid. It most commonly occurs as a crystalline decahydrate, which readily effloresces to form a
white powder, the monohydrate. Pure sodium carbonate is a white, odorless powder that
is hygroscopic (absorbs moisture from the air). It has a strongly alkaline taste, and forms a
moderately basic solution in water. Sodium carbonate is well known domestically for its
everyday use as a water softener. Historically it was extracted from the ashes of plants growing
in sodium-rich soils, such as vegetation from the Middle East, kelp from Scotland and seaweed
from Spain. Because the ashes of these sodium-rich plants were noticeably different from ashes
of timber (used to create potash), they became known as "soda ash". It is synthetically produced
in large quantities from salt (sodium chloride) and limestone by a method known as the Solvay
process.

Applications
The manufacture of glass is one of the most important uses of sodium carbonate. Sodium
carbonate acts as a flux for silica, lowering the melting point of the mixture to something
achievable without special materials. This "soda glass" is mildly water-soluble, so some calcium
carbonate is added to the melt mixture to make the glass produced insoluble. This type of glass is
known as soda lime glass: "soda" for the sodium carbonate and "lime" for the calcium carbonate.
Soda lime glass has been the most common form of glass for centuries.

Sodium carbonate is also used as a relatively strong base in various settings. For example, it is
used as a pH regulator to maintain stable alkaline conditions necessary for the action of the
majority of photographic film developing agents. It acts as an alkali because when dissolved in
water, it dissociates into the weak acid: carbonic acid and the strong alkali: sodium hydroxide.
This gives sodium carbonate in solution the ability to attack metals such as aluminium with the
release of hydrogen gas.

It is a common additive in swimming pools used to raise the pH which can be lowered
by chlorine tablets and other additives which contains acids.

In cooking, it is sometimes used in place of sodium hydroxide for lyeing, especially

with German pretzels and lye rolls. These dishes are treated with a solution of an alkaline
substance to change the pH of the surface of the food and improve browning.

In chemistry, it is often used as an electrolyte. Electrolytes are usually salt-based, and sodium
carbonate acts as a very good conductor in the process of electrolysis. In addition, unlike
chloride ions, which form chlorine gas, carbonate ions are not corrosive to the anodes. It is also
used as a primary standard for acid-base titrations because it is solid and air-stable, making it
easy to weigh accurately.
Soda ash is used as a water softener in laundering: it competes with the magnesium and calcium
ions in hard water and prevents them from bonding with the detergent being used, but doesn't
prevent scaling. Sodium carbonate can be used to remove grease, oil, and wine stains.

In dyeing with fiber-reactive dyes, sodium carbonate (often under a name such as soda ash
fixative or soda ash activator) is used to ensure proper chemical bonding of the dye with
cellulose (plant) fibers, typically before dyeing (for tie dyes), mixed with the dye (for dye
painting), or after dyeing (for immersion dyeing).

Global Market
Global Production of soda ash in 2016 as per IHS Chemical report, was approximately 56
million tpa with an estimated capacity of approximately 65 million tpa. Global demand for Soda
Ash was around 57 Million Tons which grew at around 2% over the last year. Of the total Global
Capacity of Soda Ash, approximately 75% is derived from Synthetic processes, while 25% is
produced naturally, principally from deposits of the mineral, trona.
Glass markets, which account more than half of global demand, are expected to remain the
dominant end use for soda ash, while chemicals and detergents will also remain important
downstream consumers. However, like many raw materials, the soda ash industry also has
become very sensitive to fluctuations in economic conditions.

Synthetic Soda Ash – here to stay

Although naturally produced soda ash has some cost benefits over synthetic material, there is not
sufficient supply of natural soda ash to cater to the entire global market. Synthetic soda ash
accounts for around three quarters of global consumption and is, therefore, here to stay.

Globally there is no major mismatch expected between Demand and Supply in soda ash industry,
thereby giving it reasonable stability.

Supply
Turkey will be the new major player in the Global Soda Ash market, with locally-based Ciner
Group already added 0.5 million in the beginning of 2017 and due to add a further 2 million tpa
soda ash capacity to the market by 2017 end. Additionally they have acquired a 38%
shareholding in US-based OCI Wyoming. This will make Ciner the second largest soda ash
producer in the world, after Belgium’s Solvay SA (which is expected to have a nameplate
capacity to produce 7.45m tpa soda ash in 2018).

As Turkish soda ash output rises, to a level where the country can increase exports at the same
time as meeting growing internal demand, it is likely to become the supplier of choice for many
European countries due to cost competitiveness. It is expected that during this phase, Turkey
shall exert pressure on the high cost European manufacturers. Some surplus volumes are also
expected to compete with China/US volumes in South East Asia and the Middle East.

Despite major economic challenges, China continues to be the largest Soda Ash player in the
world, having a capacity of 30.00 Million MT, which is 47% of the global capacity. In 2015,
China reported a production of 26 million tons and domestic consumption of 24 million tons, the
balance 2 Million MTs is exported. Out of this 2 Million, China exported approximately 18% to
Indian Subcontinent and balance to North & South East Asia, Middle East and Africa. Their
natural export markets are Bangladesh, Thailand, South Korea, Philippines, Vietnam, Indonesia
and India. It has however been observed that on account of the pressure faced by the domestic
industry due to unhindered capacity expansions in the past, China has in fact significantly slowed
down additions to Capacity in a hope of creating a balance in the industry.

US which produces natural soda ash have a capacity of 13.16 million tons and they produced
11.74 million tons of soda ash. The US production is stated to have grown by 2% in 2016 where
as domestic demand for soda ash saw a negative growth of 2% versus 2015. They exported 6.67
million tons, 46% of their exports are to North & South America which is their natural market.
Their export to Indian Subcontinent is only 2%.

Although naturally produced soda ash has some cost benefits over synthetic material, there is not
sufficient supply of natural soda ash to cater to the entire global market. Synthetic soda ash
accounts for around three quarters of global capacity and is, therefore, here to stay.

The global consumption pattern of soda ash in 2015was as under;

Enduse % Consumption
Glass 50
Detergents & Soaps 16
Chemicals 10
Alumina/Metals & Mining 06
Pulp & Paper 01
Others (environment 17
protection/Effluent Treatment etc.)

Indian Scenario

The Indian market for soda ash has the greatest potential to expand in the near term with positive
outlook of country’s relatively robust economy, its gap in housing and it’s rapidly expanding
liquor and automotive industries – all of which are expected to support glass demand. Indian
soda ash consumption currently stands at around 2.5 Kg per capita, compared to around 20 Kg
per capita in the US, illustrating ample room for growth. The Indian economy has not just
managed to remain afloat but also performed well with GDP growth of +7%.

As per domestic industry historical trends, the Indian Soda Ash demand is expected to grow by
around 5% annually. Our market estimate indicate that downstream demand growth is gradually
improving and 2017 is expected to be better than 2016. India’s GDP growth in real terms is
slated to be better in the coming Financial Year with the positive impact of reforms. It is
expected that downstream sectors like Detergents and Glass should be much more stable this
year. A more stable economic outlook would help generate consumer confidence and therefore
facilitate higher spending – both urban and rural, leading to a better outlook for Soda Ash.
Total Soda Ash installed capacity in India is 3.4 million tons, with an estimated production of
about 2.8 million tons in last financial year (2016-17). Going forward we are looking at
expansion of 0.25 lacs metric tons in 2017-18 and further expansion of 1.25 lacs metric tons in
2018-19. Nirma is also expanding 1.5 lakh tons by December 2016. RSPL (Ghari Group) has
also announced setting up a Soda Ash plant with capacity of 5 lakh tons. It is expected that
domestic demand growth will lead to absorption of these expansions.

The total size of the Indian soda ash market is about 3.6 million tons including internal
consumption and almost all the major industry players are located in the state of Gujarat due to
the closeness and ready availability of the main raw materials namely limestone and salt.

At present GHCL’s Soda Ash plant has a capacity of 9.50 lacs tpa. During the financial year
2016-17 GHCL has produced 8.01 lacs tons soda ash. This year, the Company has also achieved
highest domestic sales i.e. 7.40 lacs tons and total sales of Soda Ash is 7.50 lacs tons including
exports.

The Indian estimated 2015-16 distribution of Soda Ash by end use is as under;

Enduse % Consumption
Glass 30
Detergents & Soaps 44
Chemicals 11
Silicates 10
Others 05