Soda Ash Industry Global Overview

2014-15
Global Chemical Industry shift
from Developed economies to
Developing economies

Asia Pacific (including China) to

gain from this shift

Complexities in China to help

India becoming a manufacturing
hub.
Soda Ash : Global Demand – Supply (2014)

CIS (Russia & Ukraine)

Capacity 4.70
Production 4.00
Demand 3.50

Europe
North America Capacity 12.00
Capacity 12.50
Production 11.00
China
Prod. 12.00 Capacity 32.00
Demand 10.50
Demand 5.30 Production 26.00
Demand 24.00

Middle East
Capacity 0.700
Production 0.500
Demand 1.700

South America Africa

Capacity 0.200 Capacity 1.16
Production 0.80
India
Production 0.150 Capacity 3.00
Demand 2.700 Demand 1.20
Production 2.50
Demand 2.75

Australia
Capacity 0.35
Production 0.00
Demand 0.50
Indian Soda Ash Manufacturing - Facilities
END USE Consumption Pattern – Global Vs India
Growth Projection India – Soda Ash Consumers
Global Overview

China
• Total capacity touches 32 Million Tons which is 10 times of India's soda ash
production capacity.
• Production around 25 Mil Mt . Cap Utilisation 77/78%
• Despite excess glass capacity in China the capacity build up continues, a total of 245
flat glass lines operating in China, where there are only 7 in India.
• With the slow down in Chinese Economy there is a marginal softening of prices.
• Remains the major threat for India .

US / North America ( Natural Soda Ash )

• Production reaches 11.5 Million MT . Domestic demand grows by only 1%
• Exports grow by 5% mainly to Asia & South America .
• The US producers ie. Tata/ Nirma have diverted some volumes to India in current
year
• Natural SA has a huge cost advantage over the conventional process making the US
producers competitive globally.
Global – Overview

Europe
• Total capacity is 12 MMT produced in 25 plants in 15 countries including Turkey.
• IHS forecasts that after a 0.4% decline in 2013, Euro-zone real GDP will increase
1.1% in 2014 and 1.5% in 2015.
• Cost pressures forced Soda Ash plants in UK/Portugal to closure.
• European producers viz Ciech / Solvay increase export volumes to India as they
attract the lowest ADD.
• Turkey with Natural Soda Ash reserves will be a threat to the rest of the
producing countries on account of their cost advantage & location

AFRICA, ASIA & MIDDLE EAST

• TCL has shutdown their Pure Soda Ash plant at Magadi (Capacity 3.5 Lac
MT/annum) due to unsustainable operational cost.
• Penrice permanently closed its Soda Ash production facility in Australia.
• Asia led by India is the only area showing growth signs .
India - Overview

INDIA 2013-14
• While Domestic INDUSTRY
Demand HIGHLIGHTS
in 2013-14 has been flat, growth of 5/6% expected
in 2014-15 & + 5% growth predicted going forward.
• Domestic consumption is approximately 3.1 Million MT ( 2.7 MMT market
demand + 0.4 MMt internal ).
• With a production of only around 2.6 MMT, balance demand met by Imports.
• China/ US / Europe / Kenya are the major exporters to India , major growth
in India is captured by Imports .
• Flat Glass prices improve as Glass manufacturers get ADD protection on
ME / Saudi /Pakistan.
• Ghari has announced a Soda Ash plant at Village Kuranga – Dwarka . (
Likely to take between 3 to 4 years )
• Nirma & GHCL also examining expansion .
• Anti Dumping Duties will be applicable till Mid 2017 hence we have to
work our over-all costs to remain competitive going forward .
END SECTOR MACRO INDICATOS & PLAYERS : -
Mix of Global, National and Regional Players : Fragmented
Market.
Thank You