Sodium Chlorate Supply Chain - Executive Summary

Sodium Chlorate

Direct Use Chemical Precursor Chemical

NaCIOs
(solid)

Inputs to Manufacturing Process:
Sodium Chloride

Derivative Water Treatment Chemicals:

*

Sodium Chlorite

/O % of Total Domestic Consumption
Attributed to Water Sector:

Less than 2%

^ Product Family:
Chlor-alkali

CAS No.: 7775-09-9

/o\ Understanding Chemical Supply Chains 2 Shelf Life:

12 Months

— RISK OF SUPPLY DISRUPTION (Assessed in 2022)

RISK RATING: Low

,ate-Low Moderafe

RISK DRIVERS

Production of sodium chlo-
rate is concentrated at a
limited number of domestic
manufacturing facilities,
and domestic consump-
tions relies significantly on
imports. The raw material,
sodium chloride, is widely
available.

RISK PARAMETERS

Criticality: Moderate-High. Essential pre-
cursor for on-site generation of chlorine
dioxide.

Likelihood: Low. The water sector did not
experienced sodium chlorate supply chain
disruptions between 2000 and 2022.

Vulnerability: Moderate-High. Limited
domestic manufacturing and reliance on
imports to meet demand.

MANUFACTURING PROCESS

Water Treatment Applications

Sodium Chloride

Sodium Chlorate

Input

End Use

•	Water treatment chemical production

•	Chlorine dioxide generation for water

treatment (uncommon)

Other Applications

•	Chlorine dioxide generation in industries
such as pulp and paper processing

•	Pesticide and herbicide production

DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE

Domestic Manufacturing Locations (2019):

5, in Georgia, Utah, South Carolina, and
Washington

(^) International Trade (2019)

Primary Trading Partner (Imports): Canada
PrimaryTrading Partner (Exports): Japan

Domestic Consumption (2019):

699 M kg

Domestic Production (320 M kg)

¦	Imports for Consumption (427 M kg)

¦	Export of Domestic Production (48 M kg)

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Sodium Chlorate Supply Chain - Full Profile

Product Description

Sodium chlorate (NaCI03) is an inorganic sodium salt that is used for production of sodium chlorite and
generation of chlorine dioxide. It is primarily manufactured through electrolysis of a sodium chloride brine. The
majority of sodium chlorate manufactured in the U.S. is used in chlorine dioxide generation for industries other
than water treatment.

Use in Water Treatment

Sodium chlorate is not commonly used directly in water treatment but can occasionally be used for on-site
generation of chlorine dioxide (AWWA, 2018).

Use as a Precursor to Other Water Treatment Chemicals

Sodium chlorate is used to manufacture sodium chlorite, the primary precursor to the on-site generation of
chlorine dioxide for water treatment. Sodium chlorate is the primary chemical used in the manufacture of
sodium chlorite.

Other Applications

Sodium chlorate is widely used for chlorine dioxide generation in paper and pulp processing, oil and gas well
drilling, and disinfection in medical settings. It is also used in pesticide and herbicide formulations,
manufacturing of explosives and matches, dyes, fabrics, toothpastes and mouthwashes, and ore processing.
Sodium chlorate can also be used as a substitute for potassium chlorate. (ATSDR, 2004; FTC, 2016).

Primary Industrial Consumers

In North America, on-site generation of chlorine dioxide for bleaching of wood pulp in the paper industry
accounts for more than 90% of sodium chlorate use. The second most common use of sodium chlorate is as a
pesticide and herbicide formulation, accounting for only 2% of the total sodium chlorate used in the U.S.
Because the North American market for sodium chlorate has long been dominated by paper product
manufacturers, fluctuations for this end use drives demand in the market (FTC, 2016; Kemira, 2020; NCBI, 2020;
Nouryon, 2020).

Manufacturing, Transport, & Storage

Manufacturing Process

Sodium chloride is the primary raw material used to produce sodium chlorate. The majority of sodium chlorate
is produced by passing a direct electric current through a sodium chloride brine in an electrochemical cell, as
shown in Figure 1. The resulting solution is crystalized, and pure sodium chlorate crystals are washed and dried
(ERCO Worldwide, 2020).

Sodium Chloride +

Water —

> Sodium Chlorate + Hydrogen Gas

NaCI +

3H20 -

» NaCI03 + 3H2

Figure 1. Chemical Equation for the Reaction to Manufacture Sodium Chlorate

Product Transport

Sodium chlorate is commonly transported in bulk by truck, rail, barge, and ship as a hazardous material (FTC,
2016).

EPA 817-F-22-043 | December 2022

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Sodium Chlorate Supply Chain - Full Profile

Storage and Shelf Life

Sodium chlorate is a strong oxidizer. It is stable under normal conditions of use, storage, and transport. When
stored properly, sodium chlorate can have a shelf life of 12 months (ERCO Worldwide, 2020).

Domestic Production & Consumption

Domestic Production

Production data was collected from the 2020 Toxic Substances Control Act (TSCA) Chemical Data Reporting
(CDR) for the year 2019, while trade data was collected from the U.S. International Trade Commission (USITC)
Dataweb, as characterized in Table 1. Both production data and trade data are specific to sodium chlorate.

Table 1. Sodium Chlorate Production and Trade Data Sources

Production and Trade Data

Category

Data Source

Identifier

Description

Domestic Production

2020 TSCA Chemical Data Reporting

CAS No.: 7775-09-9

Sodium Chlorate

Imports and Exports

U.S. International Trade Commission

HS Code: 2829.11

Sodium Chlorate

Total U.S. domestic manufacturing of sodium chlorate was approximately 320 million kilograms (M kg) in 2019
(EPA, 2020). Domestic commercial manufacture of sodium chlorate takes place at a limited number of domestic
facilities. In 2019, five manufacturing facilities reported domestic production in Georgia, South Carolina, Utah,
and Washington. These facilities are owned by a relatively small number of companies including Superior Plus
and Kemira (EPA, 2022a). U.S. customers account for roughly 75% of North American sodium chlorate sales,
while 70% of North American production capacity is located in Canada (FTC, 2016).

Domestic Consumption

U.S. consumption of sodium chlorate in 2019 is estimated at 699 M kg. This includes production of 320 M kg,
import of 427 M kg, minus export of 48 M kg (USITC, 2021), as shown in Figure 2.

Domestic Consumption (2019):

699 M kg

¦	Domestic Production (320 M kg)

¦	Imports for Consumption (427 M kg)

¦	Export of Domestic Production (48 M kg)

Figure 2. Domestic Production and Consumption of Sodium Chlorate in 2019

Trade & Tariffs

Worldwide Trade

Worldwide import and export data for sodium chlorate are reported through the World Bank's World Integrated
Trade Solutions (WITS) software, as a category specific to sodium chlorate. In 2021, U.S. ranked third worldwide
in total exports and first in total imports of sodium chlorate, as shown in Table 2.

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Sodium Chlorate Supply Chain - Full Profile

Table 2. WITS Worldwide Export and Import of Sodium Chlorate in 2021

2021 Worldwide Trade
Sodium Chlorate (HS Code 2829.11)

Top 5 Worldwide Exporters

Top 5 Worldwide Importers

Canada

455 M kg

United States

339 M kg

France

93 M kg

Sweden

60 M kg

United States

48 M kg

Japan

47 M kg

Brazil

12 M kg

Thailand

19 M kg

China

8 M kg

India

16 M kg

Domestic Imports and Exports

Domestic import and export data are reported by USITC in categories specific to sodium chlorate. Figure 3
summarizes imports for consumption1 and domestic exports2 of sodium chlorate between 2015 and 2020.
During this period, the overall quantity of exports and imports decreased slightly, with imports for consumption
exceeding domestic exports. Over this five-year period, Japan was the primary recipient of domestic exports
while Canada was the primary source of imports (USITC, 2021).

Domestic Trade of Sodium Chlorate
600	HS Code 2829.11

500
400
300

1	200

2

100

	

2015 2016 2017	2018 2019	2020

¦	Imports from Canada	¦ Exports to Japan

¦	Imports from United Kingdom	I Exports to Canada

I Imports from Other Countries	Exports to Other Countries

Figure 3. USITC Domestic Import and Export of Sodium Chlorate between 2015 and 2020

Tariffs

There is no general duty for import of sodium chlorate (USITC, 2022), however there is a 25% additional duty on
imports from China, as summarized in Table 3.

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.

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Sodium Chlorate Supply Chain - Full Profile

Table 3. Domestic Tariff Schedule for Sodium Chlorate in 2022

HS Code

General Duty

Additional Duty - China
(Section 301 Tariff List)

Special Duty

2829.11

None

25%

None

Market History & Risk Evaluation

History of Shortages

The North American market for sodium chlorate has long been dominated by the consumption for paper and
pulp bleaching, and fluctuations for this end use drives demand in the market. Despite fluctuations in the paper
industry, there were no notable shortages of sodium chlorate between 2000 and 2022.

Risk Evaluation

The complete risk evaluation methodology is described in Understanding Water Treatment Chemical Supply
Chains and the Risk of Disruptions (EPA, 2022). 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.

Table 4. Supply Chain Risk Evaluation for Sodium Chlorate

Risk Parameter Ratings and Drivers

i

i

1

1 Criticality Moderate-High

1 Likelihood Low 1

1 Vulnerability Moderate-High 1

Sodium chlorate is essential to the
water sector as a precursor in the
production of sodium chlorite which is
used in chlorine dioxide generation.

The water sector did not experience
sodium chlorate supply disruptions
between 2000 and 2022.

Limited domestic manufacturing
capabilities and a significant reliance
on imports to meet domestic demand
could increase vulnerability.

Risk Rating: Low

ie-L0W Moderaf

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4

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Sodium Chlorate Supply Chain - Full Profile

References

Agency for Toxic Substances & Disease Registry (ATSDR), 2004. Toxicological Profile for Chlorine Dioxide,
retrieved from https://www.atsdr.cdc.gov/ToxProfiles/TP.asp?id=582&tid=108

American Water Works Association (AWWA) Disinfection Committee, 2018. 2017 Water Utility Disinfection
Survey Report, retrieved from

https://www.awwa.Org/Portals/0/AWW A/ETS/Resources/2017DisinfectionSurvevReport. pdf?ver=2018-
12-21-163548-830

EPA, 2020. 2020 TSCA Chemical Data Reporting, retrieved from https://www.epa.gov/chemical-data-
reporting/access-cdr-data#2016

EPA, 2022. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved
from https://www.epa.gov/waterutilityresponse/risk-disruptions-supplv-water-treatment-chemicals

ERCO Worldwide, 2020. Sodium Chlorate Manufacturing, retrieved from

https://www.ercoworldwide.com/our-products/products/sodium-chlorate/?locale=en

Kemira, 2020. Sodium Chlorate for Chlorine Dioxide, retrieved from

https://www.kemira.com/products/sodium-chlorate-for-chlorine-dioxide/

National Center for Biotechnology Information (NCBI), 2020. PubChem Compound Summary for CID 24850,
Sodium Chlorate, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/Sodium-chlorate

Nouryon, 2020. Eka®SC - sodium chlorate, retrieved from https://eka.nouryon.com/products/sodium-
chlorate

United States Federal Trade Commission (FTC), 2016. In the Matter of Superior Plus Corp., a corporation and
Canexus Corporation, a corporation. Docket # 9372, retrieved from
https://www.ftc.gov/svstem/files/documents/cases/160627superiorcanexuscmpt.pdf

U.S. International Trade Commission (USITC), 2021. USITC DataWeb, retrieved from
https://dataweb.usitc.gov/

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-bvhs6product.aspx?lang=en#void

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