Sodium Chlorate Consumption Structure Starts Changing in global market

Sodium chlorate in China was mainly used to produce potassium chlorate in early days. The process for sodium chlorate production was outdated in the years before 1986. Graphite cationic electrolyzer, lead dioxide cationic electrolyzer and traditional metal cationic electrolyzer developed by China itself were used. These electrolyzers had many defects and restricted to a great extent the development of the sodium chlorate industry in China.Sodium chlorate prices have risen in recent weeks, fueled by tight supply and strong demand from the pulp and paper sector.

Sodium chlorate demand in North America inched up 1% in 2003, says consultant Roger Pechey at Harriman Chemsult in London. The prospects of an improved economy in 2004 should result in stronger growth for pulp and chlorate, and boost North American chlorate demand by 2% in 2004, Pechey says. Chlorate producers have announced a series of first-quarter increases, but market insiders say prices rose only $8, with another $8 increase already apparent this month. Consulting Resources of Lexington, Mass., forecasts 6% growth in U.S. sodium chlorate demand in 2004, bolstered by anticipated growth in the pulp and paper industry. Producers are using this forecast to back their bullishness on future price hikes.

The increasing use of more specialized chemicals is catapulting demand for some pulp and paper specialty chemicals. "Polyaluminum chloride (PAC) is used for setting rosin size in the neutral pH range. It also helps in drainage and retention on papermaking machines," says Tranfield. Demand for PAC is growing at 20%-25%/yr. "There is a lot of interest because it helps machines run cleaner and is flexible enough to work in both neutral and alkaline ranges," Tranfield says.

Increased use of pulping and deinking chemicals will result from increased use of recycled paper fiber, because recycled materials need to have dyes, inks, and contaminants removed. Increased recycling will also boost demand for specialty additives. Wet-strength resins and sizes, which enhance paper strength and printability, and biocides and chelating agents, which remove contaminants from the final product, will all benefit from increasing use of recycled fiber