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OCCASION This Publication Has Been Made Available to the Public on The OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] k r i RESTRICTED MARKET STUDY F J <"* FOR SEA CHEMICALS PROJECT I N ICELAND PREPARED FOR NATIONAL RESEARCH COUNCIL REYKJAVIK, ICELAND BY WILLIAM B. THOMPSON CHEMICAL CONSULTANT Assigned by UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, Austria REYKJAVIK, ICELAND UNIDO REF: JULY 15, 1972 OA-220-ICEU0) "The writer of this report is solely responsible for the views expressed in it. Copies of the reports have been submitted to the Office of Technical Co-operation of the United Nations which will in due course communicate its own assessments and recommendations to the Government." L -i *w»fl r i TABLE OF CONTE NTS Paragraph Page No. 1 PREFACE 1 4 INTRODUCTION 2 4 The Assignment 2 7 The Objectives 3 8 The Investigation 4 13 The Report 5 MAP OF ICELAND 7 SUMMARY, RECOMMENDATIONS AND ACKNOWLEDGEMENTS IS SUMMARY 8 15.1 OBJECTIVE 8 15.2 PRODUCTS INVESTIGATED 8 15.3 INVESTIGATION 9 15.4 GENERAL OBSERVATIONS 10 15.7 SPECIFIC OBSERVATIONS 11 15.10 MARKET POTENTIAL 13 15.11 LOGICAL MARKETS 14 15.13 FORECAST OF CALCIUM CHLORIDE MARKETS 16 15.14 FORECAST OF SODA ASH MARKETS 17 15.15 CAUSTIC SODA MARKETS 18 15.16 CHLORINE MARKETS 18 15.17 FORECAST OF SALT MARKETS 20 15.18 FORECAST OF POTASSIUM CHLORIDE MARKETS 21 15.19 FORECAST OF BROMINE MARKETS 22 15.20 FORECAST OF LITHIUM COMPOUNDS MARKETS 23 L J r Paragraph Page No. 15.21 CLOSING REMARKS 24 15.26 RECOMMENDATIONS 26 ACKNOWLEDGEMENTS 28 8URVBY 16 SURVEY 32 16 Strategy 32 20 Assignment Timetable 33 22 Foreign Travel Itinerary 34 24 PRODUCTS 35 25 MARKETING CONSIDERATIONS 39 31 ICELAND MARKET 45 32 Imports and Consumption, 1961-1970 45 33 Prices 45 34 Forecast 1970-1975 47 35 Forecast 1975-1980 50 37 SCANDINAVIAN MARKETS 52 39 NORWAY 54 39. 1 CALCIUM CHLORIDE, FLAKE 55 39. 2 SODA ASH, 58% 64 39. 3 CAUSTIC SODA 70 39. 4 CHLORINE 76 39. 5 SALT 86 40 SWEDEN 91 40. 1 CALCIUM CHLORID!, FLAKE 92 40. 2 SODA ASH, 58% 96 40. 3 CAUSTIC 30DA 99 40. 4 CHLORINE 104 40. 5 SALT 108 I 41 FINLAND 113 J <*• J r Paragraph Page Wo. 114 118 119 122 123 127 128 130 132 134 138 141 141 141 142 142 142 143 42 .5.15 Price 143 43 WEST GERMANY 144 43.1 Introduction 145 43.4 Calcium chloride * Soda ash 146 43.5 Caustic soda fc Chlorine 146 43.6 Salt 147 43.7 Potassium chloride 148 43.8 Bromi ne 148 43.9 Lithium compounds 148 43.10 Export potential 148 43.11 Import potential 149 43.13 Customs duties 150 44 NETHERLANDS 151 44.1 Introduction 152 44.5 Calcium chloride 154 V- J r i i Paragraph Page No. 44.6 Soda ash 154 44.7 Caustic soda and Chlorine 155 44.8 Salt 155 44.9 Potassium chloride 156 44.10 Bromine 156 44.11 Lithium compounds 157 44.12 Export potential 157 44.13 Import potential 157 44.14 Customs duties 157 45 BELGIUM 159 45.1 Introduction 160 45.4 Calcium chloride ft Sods ash 161 45.5 Caustic soda It Chlorine 161 45.7 Salt 162 45.8 Potassium chloride 163 45.9 Bromine 163 45.10 Lithium compounds 163 45.11 Export potential 164 45.12 Import potential 164 45.13 Customs duties 164 46 UNITED KINGDOM 165 46.1 Introduction 166 46.4 Calcium chloride * Soda ash 167 46.5 Caustic soda li Chlorine 168 46.6 Salt 168 46.8 Potassium chloride 169 46.9 Bromine 169 46.10 Lithium compounds 170 46.11 Export potential 170 46.12 Import potential 170 46.13 Customs duties 171 J r i Paragraph Page No. 47 UNITED STATES OF AMERICA 172 47.1 \ INTRODUCTION 173 47.6 CALCIUM CHLORIDE 175 47.12 SODA ASH, 58% 180 47.18 OTHER PRODUCTS 185 48 CANADA 187 48.1 INTRODUCTION 188 48.3 CALCIUM CHLORIDE a SODA ASH 189 48.11 CALCIUM CHLORIDE 194 48.12 CALCIUM CHLORIDE, ANHYD., 94-97% 196 48.14 SODA ASH, 58% 198 48.17 SALT 201 48.18 BROMINE 202 48.19 OTHER PRODUCTS 202 49 POTASSIUM CHLORIDE, 60-62% a^O 203 49.1 Introduction 203 49.2 Manufacture 203 49.7 Exports 205 49.8 Imports 206 49.12 Uses 208 49.13 Price 208 49.15 Customs duties 209 49.16 Marketing 209 49.18 The Product 210 50 BROMINE 211 50.1 Introduction 211 50.2 Norway 211 50.4 Sweden 212 50.6 Finland 213 50.7 Denmark 213 50.8 West Germany 214 50.13 Netherlands 216 50.14 Belgium 217 L J r Paragraph Page No. 50.16 United Kingdom 218 50.20 United States 219 50.28 Canada 223 51 LITHIUM 225 51.3 Norway 225 51.4 Sweden 225 51.5 Finland 226 51.6 Denmark 226 51.7 West Germany 226 51.9 Netherlands and Belgium 227 51.10 Great Britain 228 51.11 United States 228 51.16 Canada 230 FORECAST OF MARKETS * PRICES 52 Preamble 232 59 Potential Markets a Trade Balances 236 61 ICELAND 237 62 FAEROE ISLANDS 239 63 GREENLAND 240 64 NORWAY 242 65 SWEDEN 251 66 FINLAND 257 67 DENMARK 263 68 WEST GERMANY 268 69 NETHERLANDS 271 70 BELGIUM 272 71 UNITED KINGDOM 273 72 UNITED STATES OF AMERICA 274 73 CANADA 277 ^- J 1 APPENDIX Number I UNIDO ASSIGNMENT JOB DESCRIPTION II TRAVEL ITINERARY - SCANDINAVIA, NORTHERN EUROPE * UNITED KINGDOM III TRAVEL ITINERARY - UNITED STATES fc CANADA IV IMPORTS OF CALCIUM CHLORIDE, FLAKE 77-80% BY COUNTRIES V IMPORTS OF SODA ASH, 58%, BY COUNTRIES VI IMPORTS OF CAUSTIC SODA, BY COUNTRIES VII IMPORTS OF CHLORINE, BY COUNTRIES VIII IMPORTS OF SALT, BY COUNTRIES IX IMPORTS OF POTASSIUM CHLORIDE, 60-62% K2° X IMPORTS OF BROMINE XI IMPORTS OF LITHIUM COMPOUNDS XII ESTIMATES OF OCEAN FREIGHT RATES FROM ICELAND TO EAST COAST PORTS OF NORTH AMERICA XIII ESTIMATES OF OCEAN FREIGHT RATES FROM ICELAND TO } SCANDINAVIAN k EUROPEAN PORTS J r -1 - MARKET SURVEY Salt and Related Chemicals Plant Iceland PREFACE This market Investigation and study has been undertaken by the United Nations Industrial Development Organization on behalf of, and in complete collaboration with, the National Research Council of Iceland. The guidelines for the Survey were outlined in the UNIDO Job Description ICE -041- D(SIS) Rev. (See APPENDIX I). 2 The recovery of mineral values from seawater and geothermal brine, with the aid of natural steam from thermal fields which abound in the region of Reykjanes in the south-western area in the general vicinity of Reykjavik, has been under active investigation since 1966. By 1969 the technical development and research studies had reached the point where it was becoming evident that it would be technical y and economically feasible to produce certain saleable salt-based chemicals from this valuable, and heretofor un-tapped, natural resource. Research and process design investigations are continuing under the leadership of Mr. Baldur Lindal, consulting chemical engineer, and Dr. Vllhjálmur LúBvíksson, chemical engineer with the National Research Council, who is in charge of project coordination and related studies. -¿ ^m——*^mm 1 - 2 - On the assumption that the various technical, economic, marketing and financial investigations continue to reflect positive end-results, it is planned that actual production of chemicals will commence in 1975. 3. A preliminary feasibility study of the projected "Sea Chemicals Industry" was carried out in 1969 by personnel of the National Research Council. The marketing part of this preliminary study gave strong indications that some of the salt-based products visualized for exploitation could be sold, at a profit, in the logical marketing areas such as Scandinavia, Northern Europe and the East coasts of Canada and the United States. Preliminary market studies for several selected products, including potassium chloride and bromine, have also been carried out in 1968 by independent consulting firms, and, here again, findings were positive. INTRODUCTION The Assignment To carry out a comprehensive market survey for calcium chloride in Northern Europe and selected locations in Canada and the United States. It is also intended to conduct an analysis of the markets for soda ash, caustic soda and liquid chlorine, taking into particular consider- } ation the special problems inherent to bulk storage, and J r - 3 bulk ocean aud inland transportation of chlorine.
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