Years of Industry Improvements Help Chrome Salt Sector Overcome the Economic Crisis   

By Zhong Weike   

These days, overview reports of most industries commonly attribute losses or other declines to the financial crisis. The chrome salt sector is no exception. Indeed, the financial crisis has actually been a burden to the global chrome salt sector in the fifteen months ending December 31st, 2009. It is known that the crisis triggered the United Kingdom's abandonment of chrome salts production. In another words, the exit of Elementis Chromium Co of the United Kingdom is related to the rapid expansion of China's capacity and emerging factories in India and Kazakhstan.  
   In 2008 China's chrome salt output has plunged, around 20% year over year.  Unlike the United Kingdom, China's chrome salt production started to recover in the first half of 2009 and surged in the second half. Prices also rebounded, followed the production recovery. The wholesale price of potassium dichromate was RMB15 000/t in a Tianjin factory at the end of 2009, and sodium dichromate was trading at around RMB11 000/t, both up 35% from one year earlier. According to data of the Shanghai Zhongshan Chemical Market, the prices of potassium dichromate and sodium dichromate remained stable in 2009. The peak prices during June-August 2008 were possibly caused by the Chinese government limiting the transportation and trading of chemicals in order to ensure the security of Olympics Game. In April and May 2009 the prices picked up a little, but soon turned down again in June mainly due to the recovery of operating rates.  
   Where did China's chrome salt sector get the dynamism to recover earlier? Low cost may be thought as an advantage when comparing China's industry to competitors in developed countries. More importantly, efforts to adjust industrial structure and the cumulative results, technical innovation and expanding markets in many past years were the firm pillar to recover in a shorter term.     
   Sodium dichromate is the main chrome salt used in industry. Potassium dichromate accounts for a small proportion. In China most sodium dichromate is used to make chromic anhydride, which is used in treating metal surfaces and manufacturing chromium oxides. It is reported that China's consumption of chromic anhydride has grown at more than 7% annualized in recent years. In 2009 China produced 100 000 tons of chromic anhydride.
   According to Mr. Ji Zhu, senior engineer of Tianjin Chemical Research and Design Institute, China's sodium dichromate sector developed dramatically in recent years. Between 1989 and 1999, the annual growth of output averaged 8.3%. In 2000 China produced 150 000 tons of sodium dichromate, ranking first in the world. Thereafter, Japan exited from this sector, the United Kingdom and the United States both cut their production capacity while China's production continues to expand at an average rate of 11% between 2000 and 2006. In 2006 China produced 303 000 tons of sodium dichromate, hitting a historical high.
   In 2008, Sichuan Anxian YinHe Construction & Chemical Group Co., Ltd., the biggest sodium dichromate producer in China with a capacity of 130 000 t/a, was impacted by the earthquake on May 12th. Chongqing Minfeng Chemical Co., Ltd., with a production capacity of 30 000 t/a, relocated its production site in 2008 and maintained only a low operating rate. Along with the impact of demand downturn, China produced only 240 000 tons of sodium dichromate in 2008, a downturn of 20%.
    In the first half of 2009, China's total output was 120 000 tons, showing that the impact of financial crisis was not over. With the aid of stimulation packages and the departure of Elementis, China's production has been restored rapidly since July. The cumulative output for the period of July to November 2009 was 153 000 tons.     

    Ji Zhu reviewed efforts that China's chrome salts sector has made in three major aspects that helped the sector recover earlier than its competitors.

First, concentration of production improved.

To regulate the production of chrome salts, the national government promulgated in May 1992, the Regulations Concerning Prevention and Treatment of Pollution Caused by the Chrome Salt Production and Construction, requiring the chrome salt sector to centralize production on a large scale and standardize pollution treatment. Since its issue, no new company emerged in China. Small factories with a capacity of less than 10 000 t/a have gradually been phased out. As of 2008, the number of producers was reduced to 14 from more than 70. This is a successful example of China controlling irrational expansion. The survivals all increased their production scales.

Second, the technology is updated

Along with the capacity expansion, the competitive edge of China's chrome salt sector has been strengthened, mainly benefiting from the technology updating. The existing companies set up their own laboratories or R&D centers for innovation. Some companies have owned patented technologies. Technology for calcium-free roasting of chromite ore to produce sodium dichromate was implemented by Gansu Jinshi Chemical Co., Ltd. (10 000 t/a) in 2004 and Xinjiang Sing Horn Group (20 000 t/a) in 2007. Chongqing Minfeng Chemical Co., Ltd.'s sodium dichromate unit using this technology is now in wet commissioning. Xinjiang Sing Horn Group started industrialization scale test on the integration process of sodium chromate - carbon ferrochrome at the end of 2008. Zhiyuan (Tianjin) Chromium Group Co., Ltd. has brought onstream a production line using carbon ferrochrome to sodium chromate to chromium trioxide green process in 2008.
   Some companies are trying to use carbonization-freezing technology to replace the traditional acidic technology for making sodium dichromate from sodium chromate. This process gives up using sulfuric acid. Sodium bicarbonate rather than sodium sulfate will be generated as a byproduct, which can be recycled in the production. Hence this technology, once successful, will reduce carbon emissions, conserve energy and be environmentally friendly. Both Jinan Yuxing Chemical Company of BlueStar Group and Sichuan Anxian YinHe Construction & Chemical Group Co., Ltd. possess the patents for producing particle crystal chromic anhydride, the latter has put its product in the market. Xinjiang Sing Horn Group developed technology producing 99.99% chromium metal from chromic anhydride through electrolysis and has exported qualified products. Sichuan Anxian YinHe Construction & Chemical Group Co., Ltd. has got the production permit for organo-chromium using as feed additives for many years. Huangshi Zhenhua Chemical Co., Ltd. invented the production technology of nanometer chromium trioxide.

Third, all companies emphasize comprehensive utilization.

China's fourteen chrome salts manufacturers no longer discharge the hexavalent-chromium containing sodium bisulfate solution that used to be a byproduct of making chromic anhydride, many years ago. Instead, they recover chromium chromate from the solution and make it into basic chromium sulfate. The neutralization workshop can separate hexavalent-chromium containing alumina residue that is now used to produce a chromium-aluminum tanning agent. Gansu Jinshi Chemical Co., Ltd. uses the recovered sodium chromate to produce aluminum hydroxide that can be used to make pure aluminum. The residue discharged from the production of sodium dichromate can be used as raw material in the production of vitamin K3. The hexavalent-chromium containing sodium sulfate solution, a byproduct of the traditional acidic technology f