A major new Study from British Sulphur Consultants on 'The Market for Potassium Chemicals' concludes that growth in demand for caustic potash (potassium hydroxide, or KOH) should average 4% per annum to 2006, but that there will be regional differences in growth patterns which have important implications for producers and consumers alike
Asia Set to Dominate Potassium Chemicals Market A major new Study from British Sulphur Consultants on 'The Market for Potassium Chemicals' concludes that growth in demand for caustic potash (potassium hydroxide, or KOH) should average 4% per annum to 2006, but that there will be regional differences in growth patterns which have important implications for producers and consumers alike.
* KOH is made by the electrolysis of potassium chloride (KCl), in a similar way to the production of caustic soda (NaOH) from salt (NaCl). KOH is the main intermediate for the production of industrial potassium chemicals, and is used as such in many end-use applications. The new Study covers supply and demand for industrial potassium chloride, potassium hydroxide, and potassium carbonate. In all over 50 end-use applications are reviewed in the 317 pages of analysis and comment, covering the demand for, supply of, trade in, and costs of industrial potassium chemicals.
* The industrial potassium chemicals industry centres around potassium hydroxide. Around two thirds of all industrial KCl sold is converted into KOH. Global demand for KOH in 2000 was 1.36 million tonnes, which is forecast to grow to 1.71 million tonnes by the end of 2006. Around 92% of KOH consumption takes place in West Europe, North America, and Asia. The study found that growth in West Europe and North America will average 3% p.a. to 2006, whereas growth in Asia will average 6% p.a.
* The largest end use market for potassium hydroxide is for the production of potassium carbonate, which accounted for 34% of demand in 2000. All other end-use applications have a share of demand below 10%. For potassium carbonate the main end-use application is the production of cathode ray tube glass for television sets and computer monitors. Demand for CRT glass is growing at faster rates in Asia than the rest of the world as producers of TV's and computer monitors increasing move production to Asia to benefit from lower production fixed costs.
* The Study examines the key supply-demand issues facing producers of industrial KCl, KOH, and potassium carbonate (K2CO3). These include: The future of mercury cell electrolysis for KOH production in West Europe. · The potential for additional KOH capacity in Asia and North America · The impact of over-capacity in K2CO3 on price and margin in North America and West Europe. · The potential for rationalisation of the supply base for industrial potassium chemicals.
* The Study highlights the need for the restructuring of the industry during the next decade, with greater concentration of production resource in Asia, and changes in West Europe and North America if producers of potassium chemicals are to harness the growth potential in the industry to profitable manufacturing.
* The Market for Potassium Chemicals: Current Status and Future Prospects is available in printed format and CD-ROM from British Sulphur Consultants. For further information contact John Segal or Allan Pickett.
* British Sulphur Consultants is the chemical division of CRU International Ltd., the world's largest business research and consultancy provider in the inorganic chemicals, minerals, metals, metal fabrication, and wire and cable industries. Based in London, England, CRU also has offices in the USA and Singapore.
