Global Salt Production and Export Trends in 2023-2024: India, Australia, and Mexico

Salt is a crucial industrial material, particularly for chemical processes such as chlor-alkali production and soda ash manufacturing. In 2023-2024, India, Australia, and Mexico are key suppliers of industrial salt, with increasing exports to markets like China, where demand is driven by rapid industrialisation. This article outlines the major salt producers in these countries and explores the evolving trends in the soda ash and chlor-alkali sectors..

India: Major Producers and Export Markets
India is one of the world’s largest producers of salt, with Gujarat contributing about 75% of the country’s total output. In 2023, India's total salt production was estimated at 30 million tonnes, and much of this output is exported to Far East Asia, Southeast Asia, and the Middle East, where industrial salt is in high demand for chemical production.

Key Indian producers include:

• Archean Group: A major exporter with a production capacity of 4.5 million tonnes, focusing on industrial salt used for soda ash and chlor-alkali production.
• Friends & Friends: Producing 3 million tonnes annually, Friends & Friends exports primarily to chemical plants in Asia.
• Jakhau Salt: With an annual capacity of 2 million tonnes, Jakhau serves chemical industries in Southeast Asia.
• Rankers Group: Now with an increased production capacity of 2.5 million tonnes, Rankers exports industrial salt mainly to the chlor-alkali sector in Asia.

India's strategic export markets include China, Indonesia, Bangladesh, and the Middle East, where its industrial salt supports the production of chlorine, caustic soda, and soda ash.

Australia: Expanding Production Capacity and Export Focus
Australia is a leading exporter of high-purity industrial salt, essential for chemical manufacturing. In 2023, Australia produced between 12 and 14 million tonnes of salt, with plans to increase capacity in the coming years.

Key Australian producers include:

• Dampier Salt (owned by Rio Tinto): Australia’s largest salt producer, with an annual capacity of 8.5 million tonnes, supplying high-purity salt to Asia, especially China and Japan.
• Shark Bay Salt (owned by Mitsui & Co.): This company operates two major production sites, Shark Bay with 1.4 million tonnes and Onslow with 2.3 million tonnes, supplying industrial-grade salt for soda ash and chlor-alkali production in Asia.

Australia’s proximity to major chemical manufacturing hubs, especially in China and Japan, makes it a preferred supplier for high-purity industrial salt used in soda ash and chlor-alkali production.

Mexico: Nationalisation of ESSA and Export Challenges
Mexico’s salt production is dominated by Exportadora de Sal S.A. (ESSA), the world’s largest sea salt producer, located in Guerrero Negro. ESSA produces 8 million tonnes of salt annually, with a significant portion used for chemical production in Japan and China.

In early 2024, the Mexican government fully nationalised ESSA, which had previously been a joint venture with Mitsubishi. However, ESSA has faced challenges, with a 30% drop in production and 44% lower sales than expected in the first quarter of 2024. Despite this, Mexico remains a key supplier of industrial salt to the global market, particularly for soda ash and chlor-alkali plants.

China: Rising Salt Imports for the Chemical Industry
China is a major consumer of industrial salt, driven by its vast chemical and glass industries. Despite significant domestic production, China imported approximately 10 million tonnes of salt in 2023, with this figure expected to rise in 2024.

China’s salt imports primarily support its chlor-alkali sector, which produces chlorine and caustic soda, as well as its soda ash industry, which uses salt to manufacture sodium carbonate. The main sources of imported salt are:

• Australia: High-purity salt from Dampier Salt and Shark Bay Salt is used extensively in Chinese chlor-alkali plants.
• India: Supplies industrial salt to key Chinese ports such as Shanghai, Tianjin, and Qingdao for chemical manufacturing.

Soda Ash Market: Recent Price Declines and Impact on Salt Demand
Soda ash is a critical product derived from salt and is essential for producing glass, chemicals, and detergents. In 2023, the soda ash market experienced significant price declines due to oversupply and reduced demand from the glass industr.

This drop in prices has affected demand for industrial salt, which is used as a raw material in soda ash production. While temporary price surges have occurred due to supply chain disruptions, the overall market outlook remains bearish. However, demand is expected to stabilise over the long term, driven by the recovery of the glass and chemical industries.

In conclusion, the global salt market in 2023-2024 is shaped by the production and export capacities of major suppliers like India, Australia, and Mexico, as well as the increasing demand from China’s chemical sector. The decline in soda ash prices has put pressure on salt producers, but the long-term outlook for industrial salt remains positive as the demand for chemicals like chlorine, caustic soda, and soda ash stabilises.