Long way of energy conservation and pollutant reduction in inorganic silicides
"Many of our distributor customers are receiving material by rail and are shipping it directly to their customers," says Britt. They're not even stocking any material of their own," Britt adds.
The primary producers of sodium chlorate include Eka Chemicals, Huron Tech Corp., Kerr-McGee, Occidental Chemical, Sterling Chemicals, Elf Atochem and Georgia Gulf. Total U.S. production is about 876,000 tons/yr.
In supply news, Huron Tech Corp. has closed its Claiborne, Ala., facility, citing high energy costs and power curtailments for the decision. This move effectively removed about 35,000 tons of annual capacity from the marketplace.
Demand: strong with environmental regulations
Demand for elemental-free-chlorine (ECF) pulp bleaching chemicals got a major boost from the development of environmental regulations around the world to eliminate chlorine use in paper production. Sodium chlorate, the most viable alternative to chlorine bleaching, has seen a dramatic increase in demand and pricing in the past year. According to producers, demand growth for the sodium chlorate market is estimated at about 8%/yr for 2000.
The U.S. Environmental Protection Agency's (EPA) cluster rules have mandated a phase out of chlorine use in pulp bleaching operations by April 1, 2001. To comply with the regulations, pulpers continue to shift their operations to ECF and TCF (total chlorine free) processes. Most sources believe this rate of demand growth will stay flat or increase as the deadline for ECF implementation in the U.S. draws closer.
Market: robust
The primary market for sodium chlorate is in pulp and paper bleaching. In fact, about 95% of sodium chlorate demand goes into the production of chlorine dioxide wood pulp bleaching agents. Other markets for sodium chlorate include herbicides and defoliants, mining applications, and in the manufacture of rocket propellants, explosives and dyes