Download Report IHS CEH Report : Calcium Chloride (Chemical Economics Handbook 2019)
PDF by S&P Global Commodity Insights; IHS Markit
Information
Format: PDF Language: English Pages: 65 Publisher: S&P Global Commodity Insights; IHS Markit Publitshion date: 2019 ISBN: 144168
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Description
Calcium chloride is a salt that can be obtained from natural brines as a by-product from synthetic soda ash production, and can be produced from hydrochloric acid and limestone. All three methods are in use, with the synthetic route being used for the largest part of the volumes. Consumption fluctuates significantly from one year to another, with two main consuming areas, deicing and dust control, being dependent on weather conditions and subject to strong variations. Consumption also fluctuates in the second-largest market, the use of completion fluids in oil drilling. Consumption in this segment fluctuates significantly on the back of oil prices and the subsequent exploration and drilling activities. On the supply side, not all capacities are equally competitive.
Calcium chloride is a salt that can be obtained from natural brines as a by-product from synthetic soda ash production, and it can be produced from hydrochloric acid and limestone. All three methods are in use, with the synthetic route being used for the largest part of the volumes. Global capacity was about 6 million metric tons in 2018, and consumption was 3.6 million metric tons. The low capacity utilization rate, at 59%, could not be sustained in other chemical segments; however, for calcium chloride it is sustainable for a variety of reasons.
Consumption fluctuates significantly from one year to another, with the two main consuming areas, deicing and dust control, being dependent on weather conditions and subject to strong variations. Consumption also fluctuates in the second-largest area of use, which is in completion fluids used in oil drilling. Consumption in this segment fluctuates significantly on the back of oil prices and subsequent exploration and drilling activities. On the supply side, not all capacities are equally competitive.
The cost of synthetic production differs significantly with the cost of hydrochloric acid. Producers act opportunistically and increase production volumes upon increasing availability and low price of hydrochloric acid. Producers also have to maintain excess capacities to be able to react to consumption peaks in the deicing segment. The product is used mostly in the form of aqueous solution.
The cost of transportation, compared with the product price, makes the solution business regional. However, the market also has a global aspect, with about 25% of the global volumes being traded across regions. The product is traded over larger distances in the form of hydrous CaCl2 flakes or prills (about 77%), or anhydrous pellets (94%), and then redissolved at the point of use. Because of the dependency on weather conditions and oil price, forecasts are meaningful only as an average over a longer period of time. An underlying growth has been observed on the average for the past few years, and is expected to continue through the forecast period.
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