Sodium Carbonate Supply Chain - Executive Summary Sodium Carbonate Rw Material Direct Use Chemical Precursor Chemical Na2C03 (solid) Source of Raw Material: Naturally occurring mineral Derivative Water Treatment Chemicals: Sodium Silicate Sodium Orthophosphates % of Total Domestic Consumption Attributed to Water Sector: Approximately 1% fos Understanding Chemical Supply Chains Map of Suppliers & Manufacturers 4L Product Family: Sodium Carbonate CAS No.: 497-19-8 2 Shelf Life: 6 Months — RISK OF SUPPLY DISRUPTION (Assessed in 2022) RISK RATING: Moderate-Low e-Low Moder; RISK DRIVERS The U.S. is home to the world's largest deposit of a natural source of sodium carbonate. Periodic price fluctuations and increases have historically been tied to fluctuations in demand for glass from the auto and construction industries and demand on the international market. RISK PARAMETERS Criticality: High. Essential for pH ad- justment and production of chemi- cals necessary for corrosion control. Likelihood: Low. No history of previ- ous disruptions that have impacted the water sector. Vulnerability: Moderate-Low. Domestic production, though abun- dant, is concentrated in two geographic locations. PRODUCTION PROCESS Water T reatment Applications Mining Sodium Carbonate Input End Use pH adjustment Water treatment chemical production Other Applications Glassmaking Chemical Manufacturing Soaps and detergents Flue gas desulfurization DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE Domestic Production Locations (2019): 5, located in Wyoming and California. (^) International Trade (2019) Primary Trading Partner (Imports): Mexico Primary Trading Partner (Exports): Mexico Domestic Consumption (2019): 4,830 M kg ¦ Domestic Production (11,700 M kg) ¦ Imports for Consumption (115 M kg) ¦ Export of Domestic Production (7,020 M kg) &EPA ------- Sodium Carbonate Supply Chain - Full Profile Product Description Sodium carbonate (Na2C03), also known as soda ash, is an inorganic salt widely used in the manufacture of glass, detergents, soaps, and chemicals. It is used directly in water treatment and as an important raw material in the production of other water treatment chemicals. The single largest use of sodium carbonate in the U.S. is for glass manufacturing. Use in Water Treatment Sodium carbonate is used directly in water for pH adjustment and water softening (AWWA, 2008). Use as a Precursor to Other Water Treatment Chemicals Sodium carbonate is used to manufacture mono- and disodium orthophosphate and sodium silicate. Other Applications Sodium carbonate has a wide range of applications. The leading use of sodium carbonate is as a fluxing agent to lower the melting temperature of silica in glassmaking processes. It is also widely used in chemical production for soaps, detergents, and other chemicals, and desulfurization of flue gas from fossil-fuel power plants (USGS, 2022). Primary Industrial Consumers In 2019, glass manufacturing accounted for approximately 47% of total sodium carbonate consumed. The chemical industry accounted for approximately 30% of total sodium carbonate sales. The remainder of 2019 domestic consumption includes: commercial market distributors, 6%; soaps and detergents, 6%; miscellaneous applications, 5%; flue gas desulfurization, 4%; pulp and paper, 1%; and water treatment, 1% (USGS, 2021). Manufacturing, Transport, & Storage Manufacturing Process Although much of the world's production of sodium carbonate is manufactured synthetically by reacting ammonia dissolved in sodium chloride with carbon dioxide, the domestic commercial market has relied almost exclusively on natural sources (i.e., trona) since 2000. Trona, a mix of sodium carbonate, sodium bicarbonate, and water, is found in a rich deposit in Wyoming. The Green River Basin of Wyoming is home to the largest natural deposits of trona in the world (USGS, 2022). There are two main methods of mining trona: longwall mining method and room and pillar method. Once the trona has been mined, it is conveyed to the surface to be processed into natural sodium carbonate. The trona is ground and calcined, followed by evaporation using evaporative crystallizers to produce sodium carbonate monohydrate crystals. The crystals are concentrated, dewatered, and dried in order to recover anhydrous sodium carbonate (NCBI, 2021). Product Transport Given the limited locations of sodium carbonate production (Wyoming and California), long-range shipping is a crucial aspect of domestic supply (AWWA, 2008; Ciner, 2016; USGS, 2022). Storage and Shelf Life Sodium carbonate is stable and non-reactive over a wide range of temperatures, and should be stored in a cool, dry environment. Exposure to high humidity may cause degradation of the product and conversion to sodium bicarbonate. When stored properly, sodium carbonate can have a shelf life of approximately 6 months (AWWA, 2008; Solvay, 2017). EPA 817-F-22-042 | December 2022 xvEPA ------- Sodium Carbonate Supply Chain - Full Profile Domestic Production & Consumption Domestic Production Production data was collected from U.S. Geological Survey (USGS), while trade data was collected from the U.S. International Trade Commission (USITC) Dataweb, as shown in Table 1. Both production and trade data are specific to sodium carbonate. Table 1. Sodium Carbonate Production and Trade Data Sources Production and Trade Data Category Data Source Identifier Description Domestic Production U.S. Geological Survey CAS No.: 497-19-8 Sodium Carbonate Imports and Exports U.S. International Trade Commission HS Code: 2836.20 Sodium Carbonate Total U.S. domestic production of sodium carbonate was approximately 11,700 million kilograms (M kg) in 2019 (USGS, 2021). There are five domestic manufacturing locations: four in Wyoming and one in California. The world's largest deposit of trona is located in the Green River Basin of Wyoming. All five domestic production locations are either partially or wholly owned by foreign sodium carbonate producers or consumers (USGS, 2022). A limited number of manufacturers dominate the worldwide production of sodium carbonate, including three of the five domestic producers in the United States and multiple producers in China (USGS, 2022). While US manufacturing relies solely on a natural source of sodium carbonate, industrial and commercial consumption of imported synthetic sodium carbonate is prevalent as well. Additionally, a considerable amount of sodium carbonate is generated during chemical manufacturing and subsequently used in a process rather than captured for use as a distinct end product. The number of domestic manufacturing locations shown in Figure 1 represents operating facilities as of 2019 (USGS, 2021). Supply of NSF/ANSI Standard 60 certified sodium carbonate for use in drinking water treatment is widely distributed throughout the U.S. (NSF International, 2021). For a more current listing of manufacturing locations and supplier locations, visit the U.S. Environmental Protection Agency's (EPA's) Chemical Locator Tool (EPA, 2022a). 2 oEPA ------- Sodium Carbonate Supply Chain - Full Profile ,583 0 Dn 5 o o .• - • • *fT - o V-_# ~ V" fcj O 1 • I'®" » ^ *• ,11—"".- .JIcP j Domestic Supply and Production of Sodium Carbonate O 39 NSF/ANSI Standard 60 Certified Suppliers (NSF International, 2021) • 5 Domestic Production Locations (USGS, 2019) Sf' Figure 1. Domestic Supply and Production of Sodium Carbonate Domestic Consumption U.S. consumption of sodium carbonate in 2019 is estimated at 4,830 M kg. This estimate includes production of 11,700 M kg, import of 115 M kg, minus export of 7,020 M kg (USGS, 2021), as shown in Figure 2. • Domestic Consumption (2019): 4,830 M kg ¦ Domestic Production (11,700 M kg) ¦ Imports for Consumption (115 M kg) ¦ Export of Domestic Production (7,020 M kg) Figure 2. Domestic Production and Consumption of Sodium Carbonate in 2019 Trade &Tariffs Worldwide Trade Worldwide import and export data for sodium carbonate are reported through the World Bank's World Integrated Trade Solutions (WITS) software, as a category specific to sodium carbonate. In 2021, the U.S. ranked first worldwide in total exports and 22nd in total imports of sodium carbonate. In 2021, Mexico ranked first 3 &EPA ------- Sodium Carbonate Supply Chain - Full Profile worldwide in total imports of sodium carbonate (WITS, 2022), as shown in Table 2. Table 2. WITS Worldwide Export and Import of Sodium Carbonate in 2021 2021 Worldwide Trade Sodium Carbonate (HS Code 2836.20) Top 5 Worldwide Exporters Top 5 Worldwide Importers United States 6,839 M kg Mexico 1,368 M kg Turkey 4,530 M kg Indonesia 821 M kg Bosnia Herzegovina 408 M kg Germany 458 M kg Kenya 303 M kg Netherlands 420 M kg Netherlands 109 M kg Japan 253 M kg Domestic Imports and Exports Domestic import and export data are reported by USITC in categories specific to sodium carbonate. Figure 3 summarizes imports for consumption1 and domestic exports2 of sodium carbonate between 2015 and 2020. During this period, the overall quantity of imports steadily decreased, with the greatest volume of imports occurring in 2015; however the volume of exports remained relatively steady, and significantly larger than imports. Over this five-year period, Mexico was the primary recipient of domestic exports and the primary source of imports shifted from the United Kingdom in 2015 to Mexico beginning in 2018 (USITC, 2021). Domestic Trade of Sodium Carbonate 8'000 HS Code 2836.20 7,000 6,000 5,000 3,000 2,000 1,000 2015 2016 2017 2018 2019 2020 I Imports from Mexico ¦ Exports to Mexico I Imports from United Kingdom ¦ Exports to Indonesia Imports from Other Countries Exports to Other Countries Figure 3. USITC Domestic Import and Export of Sodium Carbonate between 2015 and 2020 1 Imports for consumption are a subset of general imports, representing the total amount cleared through customs and entering consumption channels, not anticipated to be reshipped to foreign points, but may include some reexports. 2 Domestic exports are a subset of total exports, representing export of domestic merchandise which are produced or manufactured in the U.S. and commodities of foreign origin which have been changed in the U.S. 4 oEPA ------- Sodium Carbonate Supply Chain - Full Profile Tariffs There is a 1.2% general duty for import of sodium carbonate, and additional 25% duty on imports from China (USITC, 2022), as summarized in Table 3. Table 3. 2020 Domestic Tariff Schedule for Sodium Carbonate HS Code General Duty Additional Duty - China (Section 301 Tariff List) Special Duty 2836.20 1.2% 25% Free (A, AU, BH, CL, CO, D, E, IL, JO, KR, MA, MX, OM, P, PA, PE, S, SG)3 Market History & Risk Evaluation History of Shortages There were no identified sodium carbonate supply disruptions between 2000 and 2022. The U.S. is home to the world's largest deposit of a natural source of sodium carbonate. Periodic price fluctuations and increases have historically been tied to fluctuations in demand for glass from the auto and construction industries, as well as export volumes on the international market from the large sodium carbonate-producing countries, including the U.S., Turkey, and China (USGS, 2022). Significant increases in price were noted as a result of reduced exports, imports, and overall consumption during the COVID-19 pandemic (USGS, 2021). Risk Evaluation The complete risk assessment methodology is described in Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions (EPA, 2022b). The risk rating is calculated as the product of the following three risk parameters: Risk = Criticality x Likelihood x Vulnerability Criticality Measure of the importance of a chemical to the water sector Likelihood Measure of the probability that the chemical will experience a supply disruption in the future, which is estimated based on past occurrence of supply disruptions Vulnerability Measure of the market dynamics that make a chemical market more or less resilient to supply disruptions The individual parameter rating is based on evaluation of one or more attributes of the chemical or its supply chain. The ratings and drivers for these three risk parameters are shown below in Table 4. 3 Symbols used to designate the various preference programs and trade agreements. A full list of special trade agreements and associated acronyms can be found at https://help.cbp.gov/s/article/Article-310?language=en US and the General Notes Section of the Harmonized Tariff Schedule https://hts.usitc.gov/current 5 oEPA ------- Sodium Carbonate Supply Chain - Full Profile Table 4. Supply Chain Risk Evaluation for Sodium Carbonate Risk Parameter Ratings and Drivers ICriticality High 1 Likelihood Low Sodium carbonate is essential for pH adjustment and the production of chemicals necessary for corrosion control. The water sector did not experience sodium carbonate supply chain disruptions between 2000 and 2022. Periodic price increases have been tied to fluctuations in demand from the largest industrial consumer, the glass industry. The U.S. is a leading worldwide producer of sodium carbonate and currently has abundant domestic supply and distribution. However, a limited number of producers and production locations are concentrated to two geographic areas of the U.S. Risk Rating: Moderate-Low /\ \ References American Water Works Association (AWWA), 2008. B201 Soda Ash. Denver, CO: American Water Works Association. Ciner, 2016. Safety Data Sheet for Soda Ash / Sodium Carbonate, retrieved from https://ciner.us.com/wp- content/uploads/2016/10/SAFETY-Ciner-Soda-Ash-SDS-2016.pdf EPA, 2022a. Chemical Suppliers and Manufacturers Locator Tool, retrieved from https://www.epa.gov/waterutilityresponse/chemical-suppliers-and-manufacturers-locator-tool EPA, 2022b. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved from https://www.epa.gov/waterutilitvresponse/water-sector-supplv-chain-resilience NSF International, 2021. Search for NSF Certified Drinking Water Treatment Chemicals, retrieved from https://info.nsf.org/Certified/PwsChemicals/ Solvay Chemicals, Inc., 2017. Sodium Carbonate: Batch Numbering and Shelf Life, retrieved from https://www.solvav.com/sites/g/files/srpend221/files/2019- 06/Soda%20Ash%20Batch%20Numbering%20and%20Shelf%20Life%20Statement%20- %20Green%20River%20-%20US.pdf U.S. Geological Survey (USGS), 2021. Mineral commodity Summaries for Soda Ash, retrieved from https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-soda-ash.pdf U.S. Geological Survey, 2022. 2018 Minerals Yearbook: Soda Ash, retrieved from https://pubs.usgs.gov/mvb/voll/2018/mybl-2018-soda-ash.pdf U.S. International Trade Commission (USITC), 2021. USITC DataWeb, retrieved from https://dataweb.usitc.gov/ 6 oEPA ------- Sodium Carbonate Supply Chain - Full Profile U.S. International Trade Commission (USITC), 2022. Harmonized Tariff Schedule (HTS) Search, retrieved from https://hts.usitc.gov/ World Integrated Trade Solutions (WITS), 2022. Trade Statistics by Product (HS 6-digit), retrieved from https://wits.worldbank.org/trade/countrv-byhs6product.aspx?lang=en#void 7 oEPA ------- |