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39

MARKET DESCRIPTION
Chlorine is the eleventh most abundant element in the lithosphere; it is highly reactive and hence
rarely found in the free state. It exists mainly in the form of chlorides.
About two-thirds of chlorine is consumed by vinyl chain and other sectors. Vinyl chain accounts for
around 34% of global chlorine consumption in 2014, while other accounts for 28%. Methylene diphenyl
diisocyanate (MDI), toluene diisocyanate (TDI) and propylene oxide together account for another 14%.
Chlorine consumption has grown at an average annual rate of about 5% per year over the last five years
driven by strong growth in the vinyl industry and other sectors.
Sodium Hydroxide also known as lye and caustic soda is an inorganic compound. It is a white solid
and highly caustic metallic base and alkali salt which is available in pellets, flakes, granules, and as
prepared solutions at a number of different concentrations. Sodium hydroxide forms an approximately 50%
(by weight) saturated solution with water.
Paper Industry used for bleaching of pulp was estimated to be 54kg per ton of paper (Shreves
Chemical Process Industries). Textile 4kg per capita annually. Chlorine used for the bleaching of textile
was estimated to be 0.001kg per kg of textile (Nordic Ecolabelling December 2010). Water Treatment
Demand for domestic water from dams is 250L per capita per day or 91250 L per capita annually.
(Philippine water situation report 2006 of the league of cities of the Philippines). For treating potable water it
was estimated to be 5mg per liter of potable water (World Health Organization: Chlorine in drinking water).
PVC The demand for PVC in the Philippines is estimated to be 1.7kg per capita annually (SCG
Chemicals, CMAI 2008); 2.06kg of chlorine was used per kg of PVC (Newsflow March 2003).
Surfactant Products Shampoo, Soap production. Pulp and Paper An estimate of 15kg of paper
is consumed by each person each year (Integration of Solid Waste Management Tools in Specific
European and Asian Communities 2010). The caustic soda used is 29kg per ton of paper (Shreves
Chemical Process Industries, 1984). Caustic Soda for Oil Treatment Caustic soda is used to neutralize
the oil. An estimated 24.6 g of caustics soda is used per gallon of oil produced and 9.5 kg oil is used by a
person per year in the Philippines (Feasibility Report small scale biodiesel production, Philstar, 2012).
Textile Industry Caustic Soda used is 0.8 kg per kg of fiber (Life Cycle of Man-made cellulose Fibres
(2010) by Li Shen and Martin K. Patel). Estimated demand for textile is 4kg per capita annually (Philippine
Star by Marriane V. Go)

40

MARKET DEMAND AND SUPPLY OF CHLORINE


Before continuing with the design, it is needed of importance to know the market feasibility of the
product and the raw materials for production. This section will determine the historical demand, present
condition and projected demand for the next ten years of chlorine.
2.1 Historical Demand and Supply of Caustic Soda (Sodium Hydroxide)
Table 2.1 Historical Demand and Supply for Chlorine [National Statistics Office (NSO) Public
Reference Unit, 2015]
Year
Demand
Supply
2005
3,622,385
4,949,274
2006
9,289,594
4,664,027
2007
16,616,841
5,531,517
2008
20,981,505
9,205,173
2009
5,547,974
6,982,921
2010
18,663,812
9,949,597
2011
20,808,872
12,315,697
2012
25,722,747
14,109,430
2013
7,804,867
13,754,585
2014
22,670,938
9,380,321
30,000,000

Net Weight (kg)

25,000,000
20,000,000
15,000,000
10,000,000

Demand
Supply

5,000,000
0

Figure 2.1 Graphical Representation of the Historical Demand and Supply for Chlorine [National Statistics
Office (NSO) Public Reference Unit, 2015]

41

Worldwide the chlorine is used in wide range of applications with a shifting pattern of demand
which are very important to understand.

Plumbing
Packaging
Textile & Flooring
Electrical
Paper

Figure 2.2 More than two thirds of the demand for PVC for plumbing and electrical uses. Showing why
PVC demand is closely linked to the volatile construction sector.
So even though there is a decline in demand for chlorine for some applications such as in
packaging and pulp and paper production, overall there is a small worldwide growth. Chlorine demand is
increasing at around 2 per cent per year but with zero growth regions such as Europe and 4 per cent in the
Asian region [Chlorine: World Outlook, 1998].
The following pie charts show the comparison of the Philippiness trade for chlorine to the other
countries.

Canada
France
Germany
Austria
Romania
Mexico
Slovakia
Poland
Unit
Thai

42

Figure 2.3 Chlorine, export weight (kg), Top 10 countries in the world

Rest of the world


Philippines

Figure 2.4 Chlorine, export weight (kg), World share for Philippines
There is a big difference between the Philippines and the other countries for chlorine contribution.
Canada has the biggest contribution compare for the others, as shown above. The Philippine export for
chlorine isnt that have a big contribution compare to the amount for the others since it is so small to begin
with.
Our goal is to give the Philippines a chance to be a part of top 10 countries that contributes to the
exchange flow of chlorine market.

43

2.2 Projected Demand of Chlorine


Based on its historical data, statistical projection of the demand of chlorine was made by four
methods.
2.2.1 Arithmetic Straight Line Method
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in percent will
be the same in the future although the rate in increase in percent will keep on going down.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Net Weight
(kg)
3,622,385
9,289,594
16,616,841
20,981,505
5,547,974
18,663,812
20,808,872
25,722,747
7,804,867
22,670,938

Table 2.2 Historical Values of Chlorine Demand Using ASLM


A
N
X
Yc
Y - Yc
19,048,553
19,048,553
19,048,553
19,048,553
19,048,553
19,048,553
19,048,553
19,048,553
19,048,553
19,048,553

10
10
10
10
10
10
10
10
10
10

2116505.889
2116505.889
2116505.889
2116505.889
2116505.889
2116505.889
2116505.889
2116505.889
2116505.889
2116505.889

5,738,891
11,406,100
18,733,347
23,098,011
7,664,480
20,780,318
22,925,378
27,839,253
9,921,373

3,550,703
5,210,741
2,248,158
-17,550,037
10,999,332
28,554
2,797,369
-20,034,386
12,749,565

(Y - Yc)^2
1.26075E+13
2.71518E+13
5.05421E+12
3.08004E+14
1.20985E+14
815337261.3
7.82527E+12
4.01377E+14
1.62551E+14
1.04556E+15

2.2.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected value is constant; however the amount of
change keeps on increasing.
Table 2.3 Historical Values of Chlorine Demand Using AGCM
Year Net weight
(kg)
2005 3,622,385
2006 9,289,594
2007 16,616,841
2008 20,981,505
2009 5,547,974
2010 18,663,812
2011 20,808,872
2012 25,722,747
2013 7,804,867
2014 22,670,938
Total

Annual
Increase

% Increase

5667209
7327247
4364664
-15433531
13115838
2145060
4913875
-17917880
14866071

156.4496595
78.8758583
26.26650878
-73.55778816
236.4077049
11.49315049
23.61432662
-69.65772357
190.4718043

Yc

Absolute

Squared

64.48483347
64.48483347
64.48483347
64.48483347
64.48483347
64.48483347
64.48483347
64.48483347
64.48483347
64.48483347

257238.9654
423119.0838
695966.7203
1144759.701
1882956.088
3097177.185
5094386.735
8379493.537
13782995.99

3365146.035
8866474.916
15920874.28
19836745.3
3665017.912
15566634.82
15714485.27
17343253.46
-5978128.99

1.13242E+13
7.86144E+13
2.53474E+14
3.93496E+14
1.34324E+13
2.4232E+14
2.46945E+14
3.00788E+14
3.5738E+13
1.57613E+15

44

2.2.3 Statistical Line Method (SSLM)


For this method, the change in the figure uniform, while the change in percentage of the
data for the year is decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.4 Historical Values of Chlorine Demand Using SSLM


Net weight (kg) (Y) X
XY
Yc
Absolute
3,622,385
1 3622385 9195552.855 -5573167.855
9,289,594
2 18579188 10523864.11 -1234270.109
16,616,841
3 49850523 11852175.36 4764665.636
20,981,505
4 83926020 13180486.62 7801018.382
5,547,974
5 27739870 14508797.87 -8960823.873
18,663,812
6 111982872 15837109.13 2826702.873
20,808,872
7 145662104 17165420.38 3643451.618
25,722,747
8 205781976 18493731.64 7229015.364
7,804,867
9 70243803 19822042.89 -12017175.89
22,670,938
10 226709380 21150354.15 1520583.855
151729535 55 944098121

Squared
3.10602E+13
1.52342E+12
2.2702E+13
6.08559E+13
8.02964E+13
7.99025E+12
1.32747E+13
5.22587E+13
1.44413E+14
2.31218E+12
4.16686E+14

2.2.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Net weight (kg)


3,622,385
9,289,594
16,616,841
20,981,505
5,547,974
18,663,812
20,808,872
25,722,747
7,804,867
22,670,938
151729535

Table 2.5 Historical Values of Chlorine Demand Using SSPM


X
Bx
CX2
Yc
Absolute
-9 -5977400.645 -5569440.571 5895143.627 -2272758.627
-7 -4649089.391 -3369167.753
9423727.7
-134133.7
-5 -3320778.136 -1718963.139 12402243.57 4214597.432
-3 -1992466.882 -618826.7301 14830691.23 6150813.768
-1 -664155.6273 -68758.52557 16709070.69 -11161096.69
1 664155.6273 -68758.52557 18037381.95 626430.0545
3 1992466.882 -618826.7301
18815625 1993247.005
5 3320778.136 -1718963.139 19043799.84 6678947.159
7 4649089.391 -3369167.753 18721906.48 -10917039.48
9 5977400.645 -5569440.571 17849944.92 4820993.082
151729535

Squared
5.16543E+12
17991849476
1.77628E+13
3.78325E+13
1.2457E+14
3.92415E+11
3.97303E+12
4.46083E+13
1.19182E+14
2.3242E+13
3.76746E+14

45

Table 2.6 Projected demands of chlorine using four methods


ASLM
24,787,444
26,903,950
29,020,456
31,136,962
33,253,467
35,369,973
37,486,479
39,602,985
41,719,491
43,835,997

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

AGCM
37,290,255
61,336,813
100,889,755
165,948,346
272,959,860
448,977,571
738,500,010
1,214,720,511
1,998,031,010
3,286,457,980

SSLM
102479392.7
127614680.6
155406591
185855123.9
218960279.3
254722057.3
293140457.7
334215480.7
377947126.2
424335394.2

SPPM
16427915.15
14455817.18
11933651
8861416.618
5239114.032
1066743.241
-3655695.755
-8928202.955
-14750778.36
-21123421.97

Net weight (kg)

ASLM
50,000,000
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2014

y = 2E-48e0.0629x
R = 0.9936

2016

2018

2020

2022

2024

2026

Year

Figure 2.5 Graphical Representations of Exponential Regression for the Projected Demand of
chlorine using ASLM

46

AGCM
3,500,000,000
3,000,000,000

Net weight (kg)

2,500,000,000
2,000,000,000
1,500,000,000
1,000,000,000
y = 0e0.4976x
R = 1

500,000,000
0
2014
-500,000,000

2016

2018

2020

2022

2024

2026

Year

Figure 2.6 Graphical Representations of Exponential Regression for the Projected Demand of
chlorine using AGCM

Net weight (kg)

SSLM
500000000
450000000
400000000
350000000
300000000
250000000
200000000
150000000
100000000
50000000
0
2014

y = 4E-129e0.156x
R = 0.9897

2016

2018

2020

2022

2024

2026

Year

Figure 2.7 Graphical Representations of Exponential Regression for the Projected Demand of
chlorine using SSLM

47

Table 2.7 The

value of each projection method for demand of chlorine

Projection Method
ASLM
AGCM
SSLM
SPPM

Exponential Regression
Equation
y = 2E-48e0.0629x
y = 0e0.4976x
y = 4E-129e0.156x
NA

0.9936
0.9686
0.9897
NA

Base on the
obtained from each of the method, the table shows that the ASLM is to be used to
project the demand of chlorine since it gave the highest value of
from the gathered historical data.
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
10,225,246.94
13,185,889,21
6,455,123,99
6,137,966.71

Table 2.8 Projected Demand Of Chlorine For The Next Ten Years Using Statistical Parabolic
Projection Method
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Demand (Netweight kg)


22,151,371.83
23,589,456.38
25,120,902.52
26,751,771.35
28,488,517.47
30,338,014.52
32,307,582.38
34,405,016.14
36,638,616.95
39,017,224.90

48

2.3 Projected Supply of Chlorine


Based on its historical data, statistical projection of the supply of Chlorine is made by four different
methods.
2.3.1 Arithmetic Straight Line Method (ASLM)
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in the future will
be the same although the rate or increase in percent will keep on going down.
Table 2.9 Historical Values of Chlorine Supply using ASLM
Year Net Weight (kg) (Y)
A
N
X
Y - Yc
2005
4,949,274
4,431,047 10 492338.5556
2006
4,664,027
4,431,047 10 492338.5556
-777,586
2007
5,531,517
4,431,047 10 492338.5556
375,151
2008
9,205,173
4,431,047 10 492338.5556 3,181,317
2009
6,982,921
4,431,047 10 492338.5556 -2,714,591
2010
9,949,597
4,431,047 10 492338.5556 2,474,337
2011
12,315,697
4,431,047 10 492338.5556 1,873,761
2012
14,109,430
4,431,047 10 492338.5556 1,301,394
2013
13,754,585
4,431,047 10 492338.5556
-847,184
2014
9,380,321
4,431,047 10 492338.5556 -4,866,603
Total

(Y - Yc)^2
6.04639E+11
1.40739E+11
1.01208E+13
7.369E+12
6.12235E+12
3.51098E+12
1.69363E+12
7.1772E+11
2.36838E+13
5.39637E+13

2.3.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant; however, the
amount of change keeps on increasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Net weight
(kg)
4,949,274
4,664,027
5,531,517
9,205,173
6,982,921
9,949,597
12,315,697
14,109,430
13,754,585
9,380,321

Table 2.10 Historical Values of Chlorine Supply using AGCM


Annual
% Increase
X
Yc
Absolute
Increase
11.29122841 3581535.627 1367738.373
-285247
-5.763410957
11.29122841 3985934.995 678092.0049
867490
18.59959216
11.29122841
4435996.02
1095520.98
3673656
66.41317382
11.29122841 4936874.463 4268298.537
-2222252
-24.14133879
11.29122841 5494308.234 1488612.766
2966676
42.48474242
11.29122841 6114683.127 3834913.873
2366100
23.78086268
11.29122841 6805105.965 5510591.035
1793733
14.56460808
11.29122841 7573486.023 6535943.977
-354845
-2.514949222
11.29122841 8428625.628 5325959.372
-4374264
-31.80222449
11.29122841

Squared
1.87071E+12
4.59809E+11
1.20017E+12
1.82184E+13
2.21597E+12
1.47066E+13
3.03666E+13
4.27186E+13
2.83658E+13
1.40123E+14

49

2.3.3 Statistical Straight Line Method (SSLM)


For this method, the change in figure is uniform, while the percentage change of data for
the year is decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.11 Historical Values of Chlorine Supply Using SSLM


Net weight (kg) X
XY
Yc
Absolute
Squared
4,949,274
1
4949274 4756041.236 193232.7636 37338900943
4,664,027
2
9328054 5717866.339 -1053839.339 1.11058E+12
5,531,517
3 16594551 6679691.442 -1148174.442 1.3183E+12
9,205,173
4 36820692 7641516.545 1563656.455 2.44502E+12
6,982,921
5 34914605 8603341.648 -1620420.648 2.62576E+12
9,949,597
6 59697582 9565166.752 384430.2485 1.47787E+11
12,315,697
7 86209879 10526991.85 1788705.145 3.19947E+12
14,109,430
8 112875440 11488816.96 2620613.042 6.86761E+12
13,754,585
9 123791265 12450642.06 1303942.939 1.70027E+12
9,380,321
10 93803210 13412467.16 -4032146.164 1.62582E+13
90842542 55 578984552
3.57103E+13

2.3.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.12 Historical Values of Chlorine Supply Using SSPM


Net weight (kg) X
Bx
CX2
Yc
Absolute
4,949,274
-9 -4328212.964 -2233547.003 3432457.827 1516816.173
4,664,027
-7 -3366387.861 -1351158.063
5276671.87 -612644.8697
5,531,517
-5 -2404562.758 -689366.3589 6900288.677 -1368771.677
9,205,173
-3 -1442737.655 -248171.8892
8303308.25
901864.75
6,982,921
-1 -480912.5515 -27574.65436 9485730.588 -2502809.588
9,949,597
1 480912.5515 -27574.65436 10447555.69 -497958.6909
12,315,697
3 1442737.655 -248171.8892 11188783.56 1126913.441
14,109,430
5 2404562.758 -689366.3589 11709414.19 2400015.808
13,754,585
7 3366387.861 -1351158.063 12009447.59 1745137.409
9,380,321
9 4328212.964 -2233547.003 12088883.75 -2708562.755
90842542
90842542

Squared
2.30073E+12
3.75334E+11
1.87354E+12
8.1336E+11
6.26406E+12
2.47963E+11
1.26993E+12
5.76008E+12
3.0455E+12
7.33631E+12
2.92868E+13

50

Table 2.6 Projected supplies of chlorine using four methods


ASLM
9,872,660
10,364,998
10,857,337
11,349,675
11,842,014
12,334,352
12,826,691
13,319,029
13,811,368
14,303,707

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

AGCM
10,439,474
11,618,219
12,930,059
14,390,022
16,014,832
17,823,103
19,835,550
22,075,228
24,567,792
27,341,797

SSLM
54444019
55970330
71911728
128874430
104745824
159195562
209368860
253971752
261339128
187608434

SPPM
11947722.68
11585964.38
11003608.84
10200656.06
9177106.05
7932958.805
6468214.324
4782872.609
2876933.659
750397.4742

ASLM
y = 1E-29e0.0411x
R = 0.9973

16,000,000

Net weight (kg)

14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.8 Graphical Representations of Exponential Regression for the Projected Supply of
chlorine using ASLM

51

AGCM
30,000,000
y = 3E-87e0.107x
R = 1

Net weight (kg)

25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.9 Graphical Representations of Exponential Regression for the Projected Supply of
chlorine using AGCM

SSLM
350000000
y = 1E-152e0.1825x
R = 0.8576

Net weight (kg)

300000000
250000000
200000000
150000000
100000000
50000000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.10 Graphical Representations of Exponential Regression for the Projected Supply of
chlorine using SSLM

52

Net weight (kg)

SPPM
20000000
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
2014

y = 2E+221e-0.244x
R = 0.7327

2016

2018

2020

2022

2024

2026

Year

Figure 2.11 Graphical Representations of Exponential Regression for the Projected Supply of
chlorine using SPPM

53

Table 2.13 The

value of each projection method for supply of chlorine

Projection Method
ASLM
AGCM
SSLM
SPPM

Exponential Regression
Equation
y = 1E-29e0.0411x
y = 3E-87e0.107x
y = 1E-152e0.1825x
y = 2E+221e-0.244x

0.9973
1
0.8576
0.7327

Base on the
obtained from each of the method, the table shows that the AGCM is to be used to
project the supply of chlorine since it gave the highest value of
from the gathered historical data.
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
2,323,007.88
3,919,352,27
1,889,717.99
1,711,338.84

Table 2.14 Projected Supply Of Chlorine For The Next Ten Years Using Arithmetic Geometric
Curve Method
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Supply (Netweight kg)


12,995,978.21
14,463,679.67
16,097,136.06
17,915,066.93
19,938,305.92
22,190,039.51
24,696,072.75
27,485,124.97
30,589,158.95
34,043,747.16

54

Table 2.15 Summary of Projected Demand and Supply of Chlorine for the Next Ten Years
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Demand (kg)
22,151,371.83
23,589,456.38
25,120,902.52
26,751,771.35
28,488,517.47
30,338,014.52
32,307,582.38
34,405,016.14
36,638,616.95
39,017,224.90

Supply (kg)
12,995,978.21
14,463,679.67
16,097,136.06
17,915,066.93
19,938,305.92
22,190,039.51
24,696,072.75
27,485,124.97
30,589,158.95
34,043,747.16

Difference
9,155,393.62
9,125,776.72
9,023,766.46
8,836,704.41
8,550,211.54
8,147,975.01
7,611,509.63
6,919,891.17
6,049,458.00
4,973,477.74

45000000
40000000

Netweight (kg)

35000000
30000000
25000000

Demand

20000000

Supply

15000000
10000000
5000000
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Figure 2.12 Graphical Representations for the Projected Demand and Supply of Chlorine for the
next ten years

55

MARKET DEMAND AND SUPPLY OF CAUSTIC SODA (SODIUM HYDROXIDE)


Before continuing with the design, it is needed of importance to know the market feasibility of the
product and the raw materials for production. This section will determine the historical demand, present
condition and projected demand for the next ten years of Caustic Soda (Sodium Hydroxide)
2.4 Historical Demand and Supply of Caustic Soda (Sodium Hydroxide)
Shown in the table below is the worldwide total demand and supply of Caustic Soda
(Sodium Hydroxide), in kilograms, for the last ten years.
Table 2.16 Historical Demand and Supply for Caustic Soda [National Statistics Office (NSO) Public
Reference Unit, 2014]
YEAR
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

DEMAND (kg)
50,752,188
88,963,002
89,047,572
75,791,648
91,445,250
77,476,184
85,550,802
87,637,927
94,645,484
124,887,257

SUPPLY (kg)
17,890,021
19,343,446
20,282,888
23,838,339
25,558,587
25,751,551
26,606,089
28,848,288
35,313,080
57,551,935

140,000,000
120,000,000

Netweight (kg)

100,000,000
80,000,000

Demand

60,000,000

Supply

40,000,000
20,000,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Figure 2.13 Graphical Representation of Historical Demand and Supply of Caustic Soda (Sodium
Hydroxide)
In the graph, the supply of caustic soda (sodium hydroxide) in the country from 2012 to 2014 is
increasing, but because of the larger demand in many industries that uses caustic soda as their raw
material, the supply cant stand such needs. For that, the country imports those unsatisfied demand for
caustic soda.

56

As shown in the next figure showing the uses of caustic, chemicals represent about one half the
market for caustic. [Caustic soda: Outlook for Asia]

Other organics
Pulp & paper
Other
Alumina
Petroleum
Water
Propyleneoxide
Soaps & detergents
Inorganic

Figure 2.14 Chemicals represent one-half of market for caustic soda.

China
United State
Western Europe
Japan
India/Pakistan
Middle East
Southeaast Asia
Rep. of Korea
Taiwan
Brazil
CIS/Baltic States
Other

Figure 2.15 Caustic Soda, export weight (kg), Top 10 countries in the world

57

The charts show world consumption of caustic soda. The countries that biggest consumption
compares to the other countries are China, United States and Western Europe. Our goal is to supply those
unsatisfied demand for caustic soda.
2.5 Projected Demand of Caustic Soda (sodium hydroxide)
Based on its historical data, statistical projection of the demand and supply of caustic soda (sodium
hydroxide) was made by four different methods Arithmetic Straight Line Method (ASLM), Arithmetic
Geometric Curve Method (AGCM), Statistical Straight Line Method (SSLM) and Statistical Parabolic
Projection Method (SPPM).
2.5.1 Arithmetic Straight Line Method
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in percent will
be the same in the future although the rate or increase in percent will keep on going down.
Table 2.17 Historical Values of Caustic Soda Demand Using ASLM
Year

Net weight
(kg)

Yc

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

50,752,188
88,963,002
89,047,572
75,791,648
91,445,250
77,476,184
85,550,802
87,637,927
94,645,484
124,887,257

74135069
74135069
74135069
74135069
74135069
74135069
74135069
74135069
74135069
74135069

10
10
10
10
10
10
10
10
10
10

8237229.889
8237229.889
8237229.889
8237229.889
8237229.889
8237229.889
8237229.889
8237229.889
8237229.889
8237229.889

58989417.89
97200231.89
97284801.89
84028877.89
99682479.89
85713413.89
93788031.89
95875156.89
102882713.9

Deviation
Absolute
29973584.11
-8152659.889
-21493153.89
7416372.111
-22206295.89
-162611.8889
-6150104.889
-1229672.889
22004543.11

Squared
8.98416E+14
6.64659E+13
4.61956E+14
5.50026E+13
4.9312E+14
26442626408
3.78238E+13
1.5121E+12
4.842E+14
2.49852E+15

58

2.5.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant however; the
amount of change keeps on increasing.
Table2.18 Historical Values of Caustic Soda Demand Using AGCM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Net weight
(kg)
50,752,188
88,963,002
89,047,572
75,791,648
91,445,250
77,476,184
85,550,802
87,637,927
94,645,484
124,887,25
7

Annual
Increase

%
increase

38210814
84570
-13255924
15653602
-13969066
8074618
2087125
7007557
30241773

75.28899838
0.09506199
-14.88633963
20.65346567
-15.27587928
10.42206467
2.439632302
7.996032357
31.95268461

Yc

13.18730234
13.18730234
13.18730234
13.18730234
13.18730234
13.18730234
13.18730234
13.18730234
13.18730234
13.18730234

40958000.19
46359255.51
52472790.7
59392536.26
67224809.58
76089948.47
86124160.02
97481613.39
110336808.5

Deviation
Absolute
9794187.806
42603746.49
36574781.3
16399111.74
24220440.42
1386235.535
-573358.0201
-9843686.39
-15691324.47

TOTAL

Squared
9.59261E+13
1.81508E+15
1.33771E+15
2.68931E+14
5.8663E+14
1.92165E+12
3.28739E+11
9.68982E+13
2.46218E+14
4.35372E+15

2.5.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the change in percentage of the
data for the year is decreasing.
Table 2.19 Historical Values of Caustic Soda Demand Using SSLM
Year

Net weight
(kg)

X2

XY

Yc

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTAL

50,752,188
88,963,002
89,047,572
75,791,648
91,445,250
77,476,184
85,550,802
87,637,927
94,645,484
124,887,257
866197314

1
2
3
4
5
6
7
8
9
10
55

1
4
9
16
25
36
49
64
81
100
385

50752188
177926004
267142716
303166592
457226250
464857104
598855614
701103416
851809356
1248872570
5121711810

67112826.87
71447694.55
75782562.22
80117429.89
84452297.56
88787165.24
93122032.91
97456900.58
101791768.3
106126635.9

Deviation
Absolute
-16360638.87
17515307.45
13265009.78
-4325781.891
6992952.436
-11310981.24
-7571230.909
-9818973.582
-7146284.255
18760621.07

Squared
2.67671E+14
3.06786E+14
1.7596E+14
1.87124E+13
4.89014E+13
1.27938E+14
5.73235E+13
9.64122E+13
5.10694E+13
3.51961E+14
1.50274E+15

59

2.5.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Table 2.20 Historical Values of Caustic Soda Demand Using SPPM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTAL

Net weight
(kg)
50,752,188
88,963,002
89,047,572
75,791,648
91,445,250
77,476,184
85,550,802
87,637,927
94,645,484
124,887,25
7
866197314

XY

X2Y

Yc

Deviation

-9
-7
-5
-3
-1
1
3
5
7
9

-456769692
-622741014
-445237860
-227374944
-91445250
77476184
256652406
438189635
662518388
1123985313

4110927228
4359187098
2226189300
682124832
91445250
77476184
769957218
2190948175
4637628716
10115867817

70960784.01
72730346.92
75141236.03
78193451.32
81886992.81
86221860.48
91198054.34
96815574.39
103074420.6
109974593.1

55

715253166

29261751818

866197314

Absolute
-20208596.01
16232655.08
13906335.97
-2401803.323
9558257.194
-8745676.479
-5647252.341
-9177647.392
-8428936.633
14912663.94

Squared
4.08387E+14
2.63499E+14
1.93386E+14
5.76866E+12
9.13603E+13
7.64869E+13
3.18915E+13
8.42292E+13
7.1047E+13
2.22388E+14
1.44844E+15

Table 2.21 Projected demands of caustic soda (sodium hydroxide) using four methods
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

ASLM
133,124,486.89
141,361,716.78
149,598,946.67
157,836,176.56
166,073,406.44
174,310,636.33
182,547,866.22
190,785,096.11
199,022,326.00
207,259,555.89

AGCM
141356517.2
159997628.5
181096999.5
204978808.3
232009983.5
262605841.5
297236467.8
336433939.4
380800500.2
431017813.5

SSLM
110461503.6
114796371.3
119131238.9
123466106.6
127800974.3
132135842
136470709.6
140805577.3
62777959.2
149475312.7

SPPM
117,516,091.68
125,698,916.49
134,523,067.49
143,988,544.68
154,095,348.06
164,843,477.62
176,232,933.38
188,263,715.32
200,935,823.46
214,249,257.78

60

ASLM
250,000,000.00

Net weight (kg)

200,000,000.00
150,000,000.00
100,000,000.00

y = 2E-35e0.049x
R = 0.9961

50,000,000.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.16 Graphical Representations of Exponential Regression for the Projected Demand of
Caustic Soda using ASLM

Net weight (kg)

AGCM
500000000
450000000
400000000
350000000
300000000
250000000
200000000
150000000
100000000
50000000
0
2014

y = 6E-101e0.1239x
R = 1

2016

2018

2020

2022

2024

2026

Year

Figure 2.17 Graphical Representations of Exponential Regression for the Projected Demand of
Caustic Soda using AGCM

61

SSLM
160000000
Net weight (kg)

140000000
120000000
100000000
80000000

y = 7E+09e-0.002x
R = 0.0006

60000000
40000000
20000000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.18 Graphical Representations of Exponential Regression for the Projected Demand of
Caustic Soda using SSLM

SPPM
250,000,000.00

Net weight (kg)

200,000,000.00
150,000,000.00
100,000,000.00

y = 3E-51e0.0669x
R = 0.9999

50,000,000.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.19 Graphical Representations of Exponential Regression for the Projected Demand of
Caustic Soda using SPPM

62

Table 2.22 The

value of each projection method for demand of caustic soda (sodium hydroxide)

Projection Method

Exponential Regression
Equation
y = 2E-35e0.049x
y = 6E-10e0.123x
y = 7E+09e-0.00x
y = 3E-51e0.066x

ASLM
AGCM
SSLM
SPPM

0.996
1
0
0.999

Base on the
obtained from each of the method, the table shows that the AGCM is to be used to
project the demand of caustic soda (sodium hydroxide) since it gave the highest value of
from the
gathered historical data but the equation from AGCM is not applicable to project the demand of caustic
soda (sodium Hydroxide), hence the SPPM should be use to project the demand for caustic soda (sodium
hydroxide).
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
15,806,712.72
21,994,243.33
12,258,609.69
12,035,130.28

Table 2.23 Projected Demand Of Caustic Soda (Sodium Hydroxide) For The Next Ten Years Using
Statistical Parabolic Projection Method
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Demand (Netweight kg)


17,137,379.06
18,306,606.18
19,555,605.82
20,889,820.61
22,315,064.49
23,837,548.08
25,463,905.73
27,201,224.43
29,057,074.67
31,039,543.49

63

2.6 Projected Supply of Caustic Soda (Sodium Hydroxide)


Based on its historical data, statistical projection of the supply of caustic soda (sodium
hydroxide) is made by four different methods.
2.6.1 Arithmetic Straight Line Method (ASLM)
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in the future will
be the same although the rate or increase in percent will keep on going down.
Table 2.24 Historical Values of Caustic Soda Supply Using ASLM
Year

Net weight
(kg)

Yc

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTAL

17,890,021
19,343,446
20,282,888
23,838,339
25,558,587
25,751,551
26,606,089
28,848,288
35,313,080
57,551,935

39661914
39661914
39661914
39661914
39661914
39661914
39661914
39661914
39661914
39661914

10
10
10
10
10
10
10
10
10
10

4406879.333
4406879.333
4406879.333
4406879.333
4406879.333
4406879.333
4406879.333
4406879.333
4406879.333
4406879.333

22296900.33
23750325.33
24689767.33
28245218.33
29965466.33
30158430.33
31012968.33
33255167.33
39719959.33

Deviation
Absolute
-2953454.333
-3467437.333
-851428.3333
-2686631.333
-4213915.333
-3552341.333
-2164680.333
2057912.667
17831975.67

Squared
8.72289E+12
1.20231E+13
7.2493E+11
7.21799E+12
1.77571E+13
1.26191E+13
4.68584E+12
4.235E+12
3.17979E+14
3.85965E+14

64

2.6.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant however; the
amount of change keeps on increasing.
Table 2.25 Historical Values of Caustic Soda Supply Using AGCM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Net weight
(kg)
17,890,021
19,343,446
20,282,888
23,838,339
25,558,587
25,751,551
26,606,089
28,848,288
35,313,080
57,551,935

Annual
Increase

%
increase

1453425
939442
3555451
1720248
192964
854538
2242199
6464792
22238855

8.124222
4.856642
17.52931
7.216308
0.754987
3.318394
8.42739
22.40962
62.97625

Yc

15.06812585
15.06812585
15.06812585
15.06812585
15.06812585
15.06812585
15.06812585
15.06812585
15.06812585
15.06812585

16272885.67
18724904.56
21546396.74
24793034.92
28528880.62
32827648.26
37774159.61
43466017.52
50015531.74

Deviation
Absolute
1617135.331
618541.4398
-1263508.744
-954695.9204
-2970293.623
-7076097.258
-11168070.61
-14617729.52
-14702451.74

Squared
2.61513E+12
3.82594E+11
1.59645E+12
9.11444E+11
8.82264E+12
5.00712E+13
1.24726E+14
2.13678E+14
2.16162E+14
6.1635E+14

2.6.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the change in percentage of the
data for the year is decreasing.
Table 2.26 Historical Values of Caustic Soda Supply Using SSLM
Year

Net weight
(kg)

X2

XY

Yc

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

17,890,021
19,343,446
20,282,888
23,838,339
25,558,587
25,751,551
26,606,089
28,848,288
35,313,080
57,551,935
280984224

1
2
3
4
5
6
7
8
9
10
55

1
4
9
16
25
36
49
64
81
100
385

17890021
38686892
60848664
95353356
127792935
154509306
186242623
230786304
317817720
575519350
1805447171

13914753
17066679.53
20218606.07
23370532.6
26522459.13
29674385.67
32826312.2
35978238.73
39130165.27
42282091.8

Deviation
Absolute
3975268
2276766.467
64281.93333
467806.4
-963872.1333
-3922834.667
-6220223.2
-7129950.733
-3817085.267
15269843.2

Squared
1.58028E+13
5.18367E+12
4132166953
2.18843E+11
9.29049E+11
1.53886E+13
3.86912E+13
5.08362E+13
1.45701E+13
2.33168E+14
3.74793E+14

65

2.6.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Table 2.27 Historical Values of Caustic Soda Supply Using SPPM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Net weight
(kg)
17,890,021
19,343,446
20,282,888
23,838,339
25,558,587
25,751,551
26,606,089
28,848,288
35,313,080
57,551,935
280984224

X
-9
-7
-5
-3
-1
1
3
5
7
9

XY
-161010189
-135404122
-101414440
-71515017
-25558587
25751551
79818267
144241440
247191560
517967415
520067878

X2Y
1449091701
947828854
507072200
214545051
25558587
25751551
239454801
721207200
1730340920
4661706735
10522557600

Yc

Deviation

21017470.09
19434251.9
19034819.88
19819174.05
21787314.41
24939240.94
29274953.65
34794452.55
41497737.63
49384808.89
280984224

Absolute
-3127449.091
-90805.89697
1248068.115
4019164.945
3771272.594
812310.0606
-2668864.655
-5946164.552
-6184657.63
8167126.109

Squared
9.78094E+12
8245710924
1.55767E+12
1.61537E+13
1.42225E+13
6.59848E+11
7.12284E+12
3.53569E+13
3.825E+13
6.67019E+13
1.89815E+14

Table 2.28 Projected supplies of caustic soda (sodium hydroxide) using four methods
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

ASLM
133,124,486.89
141,361,716.78
149,598,946.67
157,836,176.56
166,073,406.44
174,310,636.33
182,547,866.22
190,785,096.11
199,022,326.00
207,259,555.89

AGCM
141356517.2
159997628.5
181096999.5
204978808.3
232009983.5
262605841.5
297236467.8
336433939.4
380800500.2
431017813.5

SSLM
110461503.6
114796371.3
119131238.9
123466106.6
127800974.3
132135842
136470709.6
140805577.3
62777959.2
149475312.7

SPPM
117,516,091.68
125,698,916.49
134,523,067.49
143,988,544.68
154,095,348.06
164,843,477.62
176,232,933.38
188,263,715.32
200,935,823.46
214,249,257.78

66

ASLM
120,000,000.00

Net weight (kg)

100,000,000.00
80,000,000.00
y = 9E-41e0.0547x
R = 0.9952

60,000,000.00
40,000,000.00
20,000,000.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.20 Graphical Representations of Exponential Regression for the Projected Supply of
Caustic Soda using ASLM

AGCM
250000000

Net weight (kg)

200000000
150000000
y = 1E-115e0.1404x
R = 1

100000000
50000000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.21 Graphical Representations of Exponential Regression for the Projected Supply of
Caustic Soda using AGCM

67

SSLM
80000000

Net weight (kg)

70000000
60000000
50000000
40000000

y = 5E+30e-0.026x
R = 0.0207

30000000
20000000
10000000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.22 Graphical Representations of Exponential Regression for the Projected Supply of
Caustic Soda using SSLM

SPPM
250000000
y = 6E-109e0.1326x
R = 0.9958

Net weight (kg)

200000000
150000000
100000000
50000000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.23 Graphical Representations of Exponential Regression for the Projected Supply of
Caustic Soda using SPPM

68

Table 2.29 The

value of each projection method for supply of caustic soda (sodium hydroxide)

Projection Method

Exponential Regression
Equation
y = 9E-41e0.054x
y = 1E-11e0.140x
y = 5E+30e-0.02x
y = 6E-10e0.132x

ASLM
AGCM
SSLM
SPPM

0.995
1
0.02
0.995

Base on the
obtained from each of the Method, the table shows that the AGCM is to be used to
project the demand of caustic soda (sodium hydroxide) since it gave the highest value of
from the
gathered historical data but the equation from AGCM is not applicable to project the demand of caustic
soda (sodium Hydroxide), hence the SPPM is to be use to project the demand for caustic soda (sodium
hydroxide)
since
it
gave
the
value second to the highest but it also not applicable therefore the ASLM should be used to project the
supply for caustic soda (sodium hydroxide).
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
6,212,610.93
8,275,467.04
6,122,031.55
4,356,771.04

Table 2.30 Projected Supply Of Caustic Soda (Sodium Hydroxide) For The Next Ten Years Using
Arithmetic Straight Line Method
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Supply (Netweight kg)


16,211,570.35
17,111,062.88
18,060,463.40
19,062,541.03
20,120,218.53
21,236,580.85
22,414,884.09
23,658,565.02
24,971,251.09
26,356,771.02

69

Table 2.31 Summary of Projected Demand and Supply of Caustic Soda (Sodium Hydroxide) for the Next
Ten Years
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Demand (kg)
17,137,379.06
18,306,606.18
19,555,605.82
20,889,820.61
22,315,064.49
23,837,548.08
25,463,905.73
27,201,224.43
29,057,074.67
31,039,543.49

Supply (kg)
16,211,570.35
17,111,062.88
18,060,463.40
19,062,541.03
20,120,218.53
21,236,580.85
22,414,884.09
23,658,565.02
24,971,251.09
26,356,771.02

Difference
925,808.71
1,195,543.30
1,495,142.42
1,827,279.58
2,194,845.96
2,600,967.23
3,049,021.64
3,542,659.41
4,085,823.58
4,682,772.47

35,000,000.00
30,000,000.00

Netweight (kg)

25,000,000.00
20,000,000.00
Demand
15,000,000.00

Supply

10,000,000.00
5,000,000.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Figure 2.24 Graphical Representations for the Projected Demand and Supply of Caustic Soda
(Sodium Chloride) for the Next Ten Years

70

MARKET DEMAND AND SUPPLY OF RAW MATERIALS


2.7 Historical Demand of Sodium Chloride (Industrial Salt)
Shown in the table below is the worldwide total demand of Sodium Chloride, in kilograms,
for the last ten years.
Table 2.32 Historical Demand and Supply for Sodium Chloride [National Statistics Office (NSO)
Public Reference Unit, 2014]
YEAR
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

DEMAND (kg)
22,636,288
31,674,182
41,257,674
51,965,428
79,006,140
81,281,670
91,312,974
102,221,336
136,830,344
176,843,660

SUPPLY (kg)
342,957,043
382,668,437
347,638,746
404,040,809
436,573,136
460,670,419
365,330,949
427,720,981
349,754,223
453,275,380

500,000,000
450,000,000
400,000,000
Netweight (kg)

350,000,000
300,000,000
250,000,000

Demand

200,000,000

Supply

150,000,000
100,000,000
50,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Figure 2.25 Graphical Representation of Historical Demand and Supply of Sodium Chloride (Industrial Salt)

The demand for sodium chloride (industrial salt) has grown at a fast pace in the past decade. But the
supply is steady in continuously increasing. Therefore there will be no shortage in supplying salt in the
Philippines.

71

2.8 Projected Demand of Sodium Chloride (Industrial Salt)


Based on its historical data, statistical projection of the demand and supply of Sodium
Chloride (Industrial Salt) was made by four different methods Arithmetic Straight Line Method
(ASLM), Arithmetic Geometric Curve Method (AGCM), Statistical Straight Line Method (SSLM) and
Statistical Parabolic Projection Method (SPPM).
2.8.1 Arithmetic Straight Line Method
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in percent will
be the same in the future although the rate or increase in percent will keep on going down.
Table 2.33 Historical Values Sodium Chloride (Industrial Salt) Demand Using ASLM
Year

Net weight
(kg)

Yc

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTAL

22,636,288
31,674,182
41,257,674
51,965,428
79,006,140
81,281,670
91,312,974
102,221,336
136,830,344
176,843,660

154207372
154207372
154207372
154207372
154207372
154207372
154207372
154207372
154207372
154207372

10
10
10
10
10
10
10
10
10
10

17134152.44
17134152.44
17134152.44
17134152.44
17134152.44
17134152.44
17134152.44
17134152.44
17134152.44
17134152.44

39770440.44
48808334.44
58391826.44
69099580.44
96140292.44
98415822.44
108447126.4
119355488.4
153964496.4

Deviation
Absolute
-8096258.444
-7550660.444
-6426398.444
9906559.556
-14858622.44
-7102848.444
-6225790.444
17474855.56
22879163.56

Squared
6.55494E+13
5.70125E+13
4.12986E+13
9.81399E+13
2.20779E+14
5.04505E+13
3.87605E+13
3.05371E+14
5.23456E+14
1.40082E+15

72

2.8.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant however; the
amount of change keeps on increasing.
Table 2.34 Historical Values of Sodium Chloride (Industrial Salt) Demand Using AGCM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Net weight
(kg)
22,636,288
31,674,182
41,257,674
51,965,428
79,006,140
81,281,670
91,312,974
102,221,336
136,830,344
176,843,660

Annual
Increase

%
increase

9037894
9583492
10707754
27040712
2275530
10031304
10908362
34609008
40013316

39.92657
30.25648
25.95336
52.03597
2.880194
12.34141
11.94612
33.85693
29.24301

Yc

26.49333927
26.49333927
26.49333927
26.49333927
26.49333927
26.49333927
26.49333927
26.49333927
26.49333927
26.49333927

21329495.16
26980390.68
34128397.12
43170149.16
54607363.24
69074677.24
87374865.83
110523385.5
139804721

Deviation
Absolute
1306792.837
4693791.319
7129276.879
8795278.843
24398776.76
12206992.76
3938108.165
-8302049.476
-2974376.962

Squared
1.70771E+12
2.20317E+13
5.08266E+13
7.73569E+13
5.953E+14
1.49011E+14
1.55087E+13
6.8924E+13
8.84692E+12
9.87806E+14

2.8.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the change in percentage of the
data for the year is decreasing.
Table 2.35 Historical Values of Sodium Chloride (Industrial Salt) Demand Using SSLM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Net weight
(kg)
22,636,288
31,674,182
41,257,674
51,965,428
79,006,140
81,281,670
91,312,974
102,221,336
136,830,344
176,843,660
815029696

X
1
2
3
4
5
6
7
8
9
10
55

X2
1
4
9
16
25
36
49
64
81
100
385

XY
22636288
63348364
123773022
207861712
395030700
487690020
639190818
817770688
1231473096
1768436600
5757211308

Yc
11982170.69
27431237.12
42880303.54
58329369.96
73778436.39
89227502.81
104676569.2
120125635.7
135574702.1
151023768.5

Deviation
Absolute
10654117.31
4242944.885
-1622629.539
-6363941.964
5227703.612
-7945832.812
-13363595.24
-17904299.66
1255641.915
25819891.49

Squared
1.1351E+14
1.80026E+13
2.63293E+12
4.04998E+13
2.73289E+13
6.31363E+13
1.78586E+14
3.20564E+14
1.57664E+12
6.66667E+14
1.4325E+15

73

2.8.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Table 2.36 Historical Values of Sodium Chloride (Industrial Salt) Demand Using SPPM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Net weight
(kg)
22,636,288
31,674,182
41,257,674
51,965,428
79,006,140
81,281,670
91,312,974
102,221,336
136,830,344
176,843,660
815029696

X
-9
-7
-5
-3
-1
1
3
5
7
9

XY
-203726592
-221719274
-206288370
-155896284
-79006140
81281670
273938922
511106680
957812408
1591592940
2549095960

X2Y
1833539328
1552034918
1031441850
467688852
79006140
81281670
821816766
2555533400
6704686856
14324336460
29451366240

Yc
26501410.87
32270983.84
40460430.18
51069749.87
64098942.93
79548009.36
97416949.15
117705762.3
140414448.8
165543008.7
815029696

Deviation
Absolute
-3865122.873
-596801.8424
797243.8242
895678.1273
14907197.07
1733660.642
-6103975.145
-15484426.3
-3584104.812
11300651.31

Squared
1.49392E+13
3.56172E+11
6.35598E+11
8.02239E+11
2.22225E+14
3.00558E+12
3.72585E+13
2.39767E+14
1.28458E+13
1.27705E+14
6.5954E+14

Table 2.37 Projected demand of sodium chloride (industrial salt) using four methods
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

ASLM
193977812.4
211111964.9
228246117.3
245380269.8
262514422.2
279648574.7
296782727.1
313916879.6
331051032
348185184.4

AGCM
223695450.8
282959845.5
357925357.4
452751736.7
572700790.3
724428353.7
916353615.2
1159126287
1466217547
1854667536

SSLM
166472834.9
181921901.4
197370967.8
212820034.2
228269100.6
243718167.1
259167233.5
274616299.9
-3466895.733
305514432.8

SPPM
193,091,441.93
223,059,748.54
255,447,928.51
290,255,981.84
327,483,908.54
367,131,708.60
409,199,382.02
453,686,928.81
500,594,348.96
549,921,642.48

74

ASLM
400000000

Net weight (kg)

350000000
300000000
250000000
200000000

y = 7E-49e0.0645x
R = 0.9933

150000000
100000000
50000000
0
2014

2016

2018

2020
Year

2022

2024

2026

Figure 2.26 Graphical Representations of Exponential Regression for the Projected Demand of
Sodium Chloride (Industrial Salt) using ASLM

Net weight (kg)

AGCM
2E+09
1.8E+09
1.6E+09
1.4E+09
1.2E+09
1E+09
800000000
600000000
400000000
200000000
0
2014

y = 5E-198e0.235x
R = 1

2016

2018

2020

2022

2024

2026

Year

Figure 2.27 Graphical Representations of Exponential Regression for the Projected Demand of
Sodium Chloride (Industrial Salt) using AGCM

75

SPPM
600,000,000.00
y = 1E-93e0.1157x
R = 0.9954

Net weight (kg)

500,000,000.00
400,000,000.00
300,000,000.00
200,000,000.00
100,000,000.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.28 Graphical Representations of Exponential Regression for the Projected Demand of
Sodium Chloride (Industrial Salt) using SPPM

Table 2.38 The

value of each projection method for demand of sodium chloride (industrial salt)

Projection Method

Exponential Regression
Equation
y = 7E-49e0.064x
y = 5E-19e0.235x
NA
y = 1E-93e0.115x

ASLM
AGCM
SSLM
SPPM

0.993
1
NA
0.995

Base on the
obtained from each of the method, the table shows that the AGCM is to be used to
project the demand of sodium chloride (industrial salt) since it gave the highest value of
from the
gathered historical data but the equation from AGCM is not applicable to project the demand of sodium
chloride (industrial salt) hence, the SPPM should be use to project the demand for sodium chloride
(industrial salt).
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
11,835,610.16
10,476,459.41
11,968,724.59
8,121,205.49

76

Table 2.39 Projected Demand of Sodium Chloride (Industrial Salt) for the Next Ten Years Using
Statistical Parabolic Projection Method
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Demand (Netweight kg)


43,339,991.22
48,621,984.94
54,547,713.38
61,195,630.73
68,653,752.61
77,020,821.44
86,407,613.71
96,938,406.63
108,752,623.48
122,006,679.54

2.9 Projected Supply of Sodium Chloride (Industrial Salt)


Based on its historical data, statistical projection of the supply of sodium chloride (industrial
salt) is made by four different methods.
2.9.1 Arithmetic Straight Line Method (ASLM)
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in the future will
be the same although the rate or increase in percent will keep on going down.
Table 2.40 Historical Values of Sodium Chloride (Industrial Salt) Supply Using ASLM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTAL

Net weight
(kg)
342,957,043
382,668,437
347,638,746
404,040,809
436,573,136
460,670,419
365,330,949
427,720,981
349,754,223
453,275,380

A
110318337
110318337
110318337
110318337
110318337
110318337
110318337
110318337
110318337
110318337

N
10
10
10
10
10
10
10
10
10
10

X
12257593
12257593
12257593
12257593
12257593
12257593
12257593
12257593
12257593
12257593

Yc
355214636
394926030
359896339
416298402
448830729
472928012
377588542
439978574
362011816

Deviation
Absolute
27453801
-47287284
44144470
20274734
11839690
-107597063
50132439
-90224351
91263564

Squared
7.53711E+14
2.23609E+15
1.94873E+15
4.11065E+14
1.40178E+14
1.15771E+16
2.51326E+15
8.14043E+15
8.32904E+15
3.60496E+16

77

2.9.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant however; the
amount of change keeps on increasing.
Table 2.41 Historical Values of Sodium Chloride (Industrial Salt) Supply Using AGCM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Net weight
(kg)
342,957,043
382,668,437
347,638,746
404,040,809
436,573,136
460,670,419
365,330,949
427,720,981
349,754,223
453,275,380

Annual
Increase

%
increase

39711394
-35029691
56402063
32532327
24097283
-95339470
62390032
-77966758
103521157

11.57912
-9.154058
16.22433
8.051743
5.519644
-20.69581
17.07767
-18.22842
29.59826

Yc

4.441387195
4.441387195
4.441387195
4.441387195
4.441387195
4.441387195
4.441387195
4.441387195
4.441387195
4.441387195

306555030.4
320170326.3
334390330.2
349241899.5
364753084.5
380953181.3
397872787.1
415543858.1
433999769.8

Deviation
Absolute
36402012.58
62498110.71
13248415.84
54798909.53
71820051.53
79717237.74
-32541838.07
12177122.91
-84245546.8

Squared
1.32511E+15
3.90601E+15
1.75521E+14
3.00292E+15
5.15812E+15
6.35484E+15
1.05897E+15
1.48282E+14
7.09731E+15
2.6902E+16

2.9.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the change in percentage of the
data for the year is decreasing.
Table 2.42 Historical Values of Sodium Chloride (Industrial Salt) Supply Using SSLM
Year

Net weight
(kg)

X2

XY

Yc

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

342,957,043
382,668,437
347,638,746
404,040,809
436,573,136
460,670,419
365,330,949
427,720,981
349,754,223
453,275,380
3970630123

1
2
3
4
5
6
7
8
9
10
55

1
4
9
16
25
36
49
64
81
100
385

342957043
765336874
1042916238
1616163236
2182865680
2764022514
2557316643
3421767848
3147788007
4532753800
22373887883

367858164.7
374348130.8
380838097
387328063.1
393818029.2
400307995.4
406797961.5
413287927.6
419777893.8
426267859.9

Deviation
Absolute
-24901121.67
8320306.188
-33199350.95
16712745.91
42755106.77
60362423.63
-41467012.51
14433053.35
-70023670.79
27007520.07

Squared
6.20066E+14
6.92275E+13
1.1022E+15
2.79316E+14
1.828E+15
3.64362E+15
1.71951E+15
2.08313E+14
4.90331E+15
7.29406E+14
1.5103E+16

78

2.9.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Table 2.43 Historical Values of Sodium Chloride (Industrial Salt) Supply Using SPPM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Net weight
(kg)
342,957,043
382,668,437
347,638,746
404,040,809
436,573,136
460,670,419
365,330,949
427,720,981
349,754,223
453,275,380
3970630123

X
-9
-7
-5
-3
-1
1
3
5
7
9

XY
-3086613387
-2678679059
-1738193730
-1212122427
-436573136
460670419
1095992847
2138604905
2448279561
4079478420
1070844413

X2Y
27779520483
18750753413
8690968650
3636367281
436573136
460670419
3287978541
10693024525
17137956927
36715305780
1.27589E+11

Yc
348303193.6
367829807.1
384097258.8
397105548.6
406854676.6
413344642.7
416575447
416547089.5
413259570.1
406712888.9
3970630123

Deviation
Absolute
-5346150.627
14838629.87
-36458512.79
6935260.386
29718459.41
47325776.27
-51244498.03
11173891.51
-63505347.11
46562491.12

Squared
2.85813E+13
2.20185E+14
1.32922E+15
4.80978E+13
8.83187E+14
2.23973E+15
2.626E+15
1.24856E+14
4.03293E+15
2.16807E+15
1.37009E+16

Table 2.44 Projected supplies of sodium chloride (industrial salt) using four methods
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

ASLM
465,532,973.00
477,790,566.00
490,048,159.00
502,305,752.00
514,563,345.00
526,820,938.00
539,078,531.00
551,336,124.00
563,593,717.00
575,851,310.00

AGCM
473,407,094.69
494,432,936.77
516,392,617.92
539,327,613.53
563,281,241.09
588,298,742.01
614,427,367.01
641,716,465.41
670,217,578.34
699,984,536.04

SSLM
432,757,826.07
439,247,792.21
445,737,758.35
452,227,724.48
458,717,690.62
465,207,656.76
471,697,622.90
478,187,589.04
361,368,198.53
491,167,521.32

SPPM
396,907,045.82
383,842,040.91
367,517,874.16
347,934,545.58
325,092,055.15
298,990,402.88
269,629,588.77
237,009,612.82
201,130,475.02
161,992,175.39

79

ASLM
700,000,000.00

Net weight (kg)

600,000,000.00
500,000,000.00
400,000,000.00
y = 1E-12e0.0236x
R = 0.9991

300,000,000.00
200,000,000.00
100,000,000.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.29 Graphical Representations of Exponential Regression for the Projected Supplyof
Sodium Chloride (Industrial Salt) using ASLM

AGCM
800,000,000.00

Net weight (kg)

700,000,000.00
600,000,000.00
500,000,000.00
400,000,000.00

y = 4E-30e0.0435x
R = 1

300,000,000.00
200,000,000.00
100,000,000.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.30 Graphical Representations of Exponential Regression for the Projected Supplyof
Sodium Chloride (Industrial Salt) using AGCM

80

SSLM
600,000,000.00

Net weight (kg)

500,000,000.00
400,000,000.00
300,000,000.00
200,000,000.00

y = 2E+07e0.0016x
R = 0.0033

100,000,000.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.31 Graphical Representations of Exponential Regression for the Projected Supplyof
Sodium Chloride (Industrial Salt) using SSLM

Net weight (kg)

SPPM
500,000,000.00
450,000,000.00
400,000,000.00
350,000,000.00
300,000,000.00
250,000,000.00
200,000,000.00
150,000,000.00
100,000,000.00
50,000,000.00
-

y = 4E+91e-0.095x
R = 0.9267

2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.32 Graphical Representations of Exponential Regression for the Projected Supply of
Sodium Chloride (Industrial Salt) using SSPM

81

Table 2.45 The

value of each projection method for supply of sodium chloride (industrial salt)

Projection Method

Exponential Regression
Equation
y = 1E-12e0.023x
y = 4E-30e0.043x
y = 2E+07e0.001x
y = 4E+91e-0.09x

ASLM
AGCM
SSLM
SPPM

0.999
1
0.003
0.926

Base on the
obtained from each of the Method, the table shows that the AGCM is to be used to
project the demand of caustic soda (sodium hydroxide) since it gave the highest value of
from the
gathered historical data.
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
60,041,349.74
54,672,741.89
38,862,545.26
37,014,662.37

Table 2.46 Projected Supply Of Sodium Chloride (Industrial Salt) For The Next Ten Years Using
Arithmetic Straight Line Method
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Supply (Netweight kg)


170,414,041.36
177,901,675.59
185,718,300.70
193,878,371.87
202,396,979.39
211,289,876.59
220,573,508.97
230,265,044.61
240,382,405.93
250,944,302.81

82

Table 2.47 Summary of Projected Demand and Supply of Sodium Chloride (Industrial Salt) for the Next Ten
Years
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Demand (kg)
43,339,991.22
48,621,984.94
54,547,713.38
61,195,630.73
68,653,752.61
77,020,821.44
86,407,613.71
96,938,406.63
108,752,623.48
122,006,679.54

Supply (kg)
170,414,041.36
177,901,675.59
185,718,300.70
193,878,371.87
202,396,979.39
211,289,876.59
220,573,508.97
230,265,044.61
240,382,405.93
250,944,302.81

Difference
127,074,050.14
129,279,690.65
131,170,587.32
132,682,741.14
133,743,226.78
134,269,055.15
134,165,895.26
133,326,637.98
131,629,782.45
128,937,623.27

300,000,000.00

Netweight (kg)

250,000,000.00
200,000,000.00
Demand

150,000,000.00

Supply
100,000,000.00
50,000,000.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Figure 2.33 Graphical Representations for the Demand and Supply of Sodium Chloride (Industrial
Salt) for the Next Ten Years

83

2.10 Historical Demand And Supply For Sulfuric Acid


The following tables show the availability and resource of sulfuric acid as a raw material which
proves the economic feasibility of the chlorine and caustic soda production.
Table 2.48 Historical Demand and Supply of Sulfuric Acid [National Statistics Office (NSO) Public
Reference Unit, 2014]
Year
Demand (kg)
Supply (kg)
2005
131,311,551
81,605,760
2006
275,500,535
259,073,479
2007
294,680,128
266,775,008
2008
506,761,314
339,458,428
2009
301,607,727
584,607,442
2010
430,092,955
504,684,256
2011
292,080,333
656,809,247
2012
46,935,107
710,033,448
2013
101,550,936
687,767,630
2014
321,488,122
521,287,589
The demand for the sulfuric acid had grown for 3 consecutive years and also its supply does have
a constant growth in numbers making it available through many years. The country does have a good
export for sulfuric acid since its supply is greater than its demand.
800,000,000
700,000,000

Net Weight (kg)

600,000,000
500,000,000
400,000,000

Demand

300,000,000

Supply

200,000,000
100,000,000
2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Figure 2.34 Graphical representations of the Historical Demand and Supply for Sulfuric Acid
[National Statistics Office (NSO) Public Reference Unit, 2014]

84

2.11 Projected Demand of Sulfuric Acid


Based on its historical data, statistical projection of the demand of sulfuric acid was made by four
different methods.
2.11.1 Arithmetic Straight Line Method
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in the future will
be the same although the rate or increase in percent will keep on going down.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.49 Historical Values of Sulfuric Acid using ASLM


Net Weight (kg)
Yn - Yc
N
a
Yc
Y - Yc
(Y - Yc)^2
131,311,551
190,176,571 10 21130730.11
275,500,535
190,176,571 10 21130730.11 152,442,281 123,058,254 1.51433E+16
294,680,128
190,176,571 10 21130730.11 296,631,265
-1,951,137 3.80694E+12
506,761,314
190,176,571 10 21130730.11 315,810,858 190,950,456 3.64621E+16
301,607,727
190,176,571 10 21130730.11 527,892,044 -226,284,317 5.12046E+16
430,092,955
190,176,571 10 21130730.11 322,738,457 107,354,498
1.1525E+16
292,080,333
190,176,571 10 21130730.11 451,223,685 -159,143,352 2.53266E+16
46,935,107
190,176,571 10 21130730.11 313,211,063 -266,275,956 7.09029E+16
101,550,936
190,176,571 10 21130730.11
68,065,837
33,485,099 1.12125E+15
321,488,122
190,176,571 10 21130730.11 122,681,666 198,806,456
3.9524E+16
2.51214E+17
2.11.2 Arithmetic Geometric Curve Method (AGCM)
In this method, the rate of increase in the projected values is constant; however, the
amount of change keeps on increasing.

Table 2.50 Historical Values of Sulfuric Acid using AGCM


Year Net weight (kg) Annual Increase % Increase
X
Yc
Absolute
Squared
2005
131,311,551
45.30869797 11131160.12 120180391 1.4443E+16
2006
275,500,535
144188984
109.8067785 45.30869797 16174543.83 259325991 6.725E+16
2007
294,680,128
19179593
6.961726227 45.30869797 23503019.05 271177109 7.3537E+16
2008
506,761,314
212081186
71.96996534 45.30869797 34151930.96 472609383 2.2336E+17
2009
301,607,727
-205153587
-40.4832771 45.30869797 49625726.21 251982001 6.3495E+16
2010
430,092,955
128485228
42.6001115 45.30869797 72110496.61 357982458 1.2815E+17
2011
292,080,333
-138012622
-32.08902178 45.30869797 104782823.7 187297509 3.508E+16
2012
46,935,107
-245145226
-83.93075408 45.30869797 152258556.8 -105323450 1.1093E+16
2013
101,550,936
54615829
116.3645563 45.30869797 221244926.5 -119693990 1.4327E+16
2014
321,488,122
219937186
216.5781968 45.30869797
Total
6.3074E+17

85

2.11.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the percentage change of the
data for the year is decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.51 Historical Values of Sulfuric Acid Demand using SSLM


Net weight (kg) (Y) X
XY
Yc
Absolute
131,311,551
1
131311551 304573803.7 -173262253
275,500,535
2
551001070 296935374.2 -21434839.2
294,680,128
3
884040384 289296944.6 5383183.35
506,761,314
4 2027045256 281658515.1 225102799
301,607,727
5 1508038635 274020085.6 27587641.4
430,092,955
6 2580557730 266381656 163711299
292,080,333
7 2044562331 258743226.5 33337106.5
46,935,107
8
375480856
251104797 -204169690
101,550,936
9
913958424 243466367.4 -141915431
321,488,122
10 3214881220 235827937.9 85660184.1
2702008708
55 14230877457

Squared
3.002E+16
4.5945E+14
2.8979E+13
5.0671E+16
7.6108E+14
2.6801E+16
1.1114E+15
4.1685E+16
2.014E+16
7.3377E+15
1.7902E+17

2.11.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the prior year may also be increasing or decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.52 Historical Values of Sulfuric Acid Demand using SPPM


Net weight (kg) X
Bx
CX2
Yc
Absolute
131,311,551 -9 34372932.93 -168292988 204844625.4 -7.4E+07
275,500,535 -7 26734503.39 -101806870 263692314.7 11808220
294,680,128 -5 19096073.85 -51942280 305918474.4 -1.1E+07
506,761,314 -3 11457644.31 -18699221 331523104.3 1.75E+08
301,607,727 -1
3819214.77 -2077691.2 340506204.5 -3.9E+07
430,092,955 1 -3819214.77 -2077691.2 332867774.9 97225180
292,080,333 3 -11457644.31 -18699221 308607815.7 -1.7E+07
46,935,107 5 -19096073.85 -51942280 267726326.7 -2.2E+08
101,550,936 7 -26734503.39 -101806870
210223308 -1.1E+08
321,488,122 9 -34372932.93 -168292988 136098759.5 1.85E+08
2702008708
2702008708

Squared
5.40711E+15
1.39434E+14
1.263E+14
3.07084E+16
1.51309E+15
9.45274E+15
2.73158E+14
4.87488E+16
1.18097E+16
3.43692E+16
1.42548E+17

86

Table 2.53 Projected demand of sulfuric acid using four methods


ASLM
342,618,852
363,749,582
384,880,312
406,011,042
427,141,773
448,272,503
469,403,233
490,533,963
511,664,693
532,795,423

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

AGCM
467,150,204
678,809,879
986,369,797
1,433,281,110
2,082,682,118
3,026,318,269
4,397,503,673
6,389,955,331
9,285,160,892
13,492,146,396

SSLM
3342673411
3647247215
3852521435
4042518796
4217239297
4376682940
4520849723
4649739647
4763352713
4861688919

SPPM
570,141,126
618,994,662
667,848,199
716,701,735
765,555,272
814,408,808
863,262,345
912,115,881
960,969,418
1,009,822,955

ASLM
600,000,000

Net weight (kg)

500,000,000
400,000,000
y = 6E-35e0.0488x
R = 0.9962

300,000,000
200,000,000
100,000,000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.35 Graphical Representations of Exponential Regression for the Projected Demand of
Sulfuric Acid using ASLM

87

AGCM
16,000,000,000

Net weight (kg)

14,000,000,000
12,000,000,000
10,000,000,000
8,000,000,000
6,000,000,000
4,000,000,000
2,000,000,000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.36 Graphical Representations of Exponential Regression for the Projected Demand of
Sulfuric Acid using AGCM

SSLM
6E+09

Net weight (kg)

5E+09
4E+09
y = 6E-26e0.0397x
R = 0.9591

3E+09
2E+09
1E+09
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.37 Graphical Representations of Exponential Regression for the Projected Demand of
Sulfuric Acid using SSLM

88

Table 2.54 The

value of each projection method for demand of sulfuric acid

Projection Method

Exponential Regression
Equation
y = 6E-35e0.0488x
y = 0e0.3737x
y = 6E-26e0.0397x
N/A

ASLM
AGCM
SSLM
SPPM

0.9962
1
0.9591
N/A

From the table above by considering exponential regression type, AGCM gave a value closest to 1
but the given formula of AGCM (y=0e0.3737x) will not give any numerical value after substation, so
considering other methods r2 values ASLM will be used. Using its formula for predicting the projected
demand we have.
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
158,497,176
261,681,109.90
133,796,957.50
119,383,435.90

Table 2.55 Projected Demand Of Sulfuric Acid For The Next Ten Years Using Arithmetic Straight
Line Method
Year
Supply (Netweight kg)
2015
304,425,988.2
2016
319,650,535.9
2017
335,636,473.4
2018
352,421,878.4
2019
370,046,732.7
2020
388,553,017.8
2021
407,984,814.7
2022
428,388,408.7
2023
449,812,400.1
2024
472,307,819.7

89

2.12 Projected Supply of Sulfuric Acid


Based on its historical data, statistical projection of the supply of sulfuric acid was made by four
different methods.
2.12.1 Arithmetic Straight Line Method (ASLM)
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in the future will
be the same although the rate or increase in percent will keep on going down.
Table 2.56 Historical Values of Sulfuric Acid Supply using ASLM
Year Net Weight (kg)
A
N
x
Yc
Y - Yc
2005
81,605,760 439,681,829 10 48853536.56
2006
259,073,479 439,681,829 10 48853536.56 488,535,366 -229,461,887
2007
266,775,008 439,681,829 10 48853536.56 488,535,366 -221,760,358
2008
339,458,428 439,681,829 10 48853536.56 488,535,366 -149,076,938
2009
584,607,442 439,681,829 10 48853536.56 488,535,366
96,072,076
2010
504,684,256 439,681,829 10 48853536.56 488,535,366
16,148,890
2011
656,809,247 439,681,829 10 48853536.56 488,535,366 168,273,881
2012
710,033,448 439,681,829 10 48853536.56 488,535,366 221,498,082
2013
687,767,630 439,681,829 10 48853536.56 488,535,366 199,232,264
2014
521,287,589 439,681,829 10 48853536.56 488,535,366
32,752,223

(Y - Yc)^2
5.26528E+16
4.91777E+16
2.22239E+16
9.22984E+15
2.60787E+14
2.83161E+16
4.90614E+16
3.96935E+16
1.07271E+15

2.12.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant; however, the
amount of change keeps on increasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.57 Historical Values of Sulfuric Acid Supply using AGCL


Net weight (kg) Annual Increase % Increase
X
Yc
81,605,760
35.2375862 34450909.34
259,073,479
177467719
217.469599 35.2375862 46590578.22
266,775,008
7701529
2.972719952 35.2375862 63007973.38
339,458,428
72683420
27.24521331 35.2375862 85210462.31
584,607,442
245149014
72.21768375 35.2375862 115236572.4
504,684,256
-79923186
-13.67125703 35.2375862 155843158.9
656,809,247
152124991
30.14260683 35.2375862 210758526.4
710,033,448
53224201
8.103448793 35.2375862 285024743.8
687,767,630
-22265818
-3.135882973 35.2375862 385460583.6
521,287,589
-166480041
-24.20585584 35.2375862

Absolute
47154850.7
212482901
203767035
254247966
469370870
348841097
446050721
425008704
302307046

Squared
2.2236E+15
4.5149E+16
4.1521E+16
6.4642E+16
2.2031E+17
1.2169E+17
1.9896E+17
1.8063E+17
9.139E+16
9.6652E+17

90

2.12.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the percentage change of the
data for the year is decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.58 Historical Values of Sulfuric Acid Supply using SSLM


Net weight (kg) (Y) X
XY
Yc
Absolute
81,605,760
1
81605760
187217038.1 -105611278
259,073,479
2
518146958 248104413.8 10969065.2
266,775,008
3
800325024 308991789.5 -42216781.5
339,458,428
4 1357833712 369879165.2 -30420737.2
584,607,442
5 2923037210 430766540.9 153840901
504,684,256
656,809,247
710,033,448
687,767,630
521,287,589
4612102287

6 3028105536
7 4597664729
8 5680267584
9 6189908670
10 5212875890
55 30389771073

491653916.5
552541292.2
613428667.9
674316043.6
735203419.3

13030339.5
104267955
96604780.1
13451586.4
-213915830

Squared
1.1154E+16
1.2032E+14
1.7823E+15
9.2542E+14
2.3667E+16
1.6979E+14
1.0872E+16
9.3325E+15
1.8095E+14
4.576E+16
1.0396E+17

2.12.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Table 2.59 Historical Values of Sulfuric Acid Supply using SPPM
Year Net weight (kg) X
Bx
CX2
Yc
Absolute
2005
81,605,760 -9 -273993190.6 -215672929 59410858.05 22194902
2006
259,073,479 -7 -213105814.9 -130468809 205502353.8 53571125
2007
266,775,008 -5 -152218439.2 -66565719 330292819.5 -6.4E+07
2008
339,458,428 -3 -91331063.54 -23963659 433782255.2 -9.4E+07
2009
584,607,442 -1 -30443687.85 -2662628.8 515970660.9 68636781
2010
504,684,256 1 30443687.85 -2662628.8 576858036.6 -7.2E+07
2011
656,809,247 3 91331063.54 -23963659 616444382.3 40364865
2012
710,033,448 5 152218439.2 -66565719 634729697.9 75303750
2013
687,767,630 7 213105814.9 -130468809 631713983.6 56053646
2014
521,287,589 9 273993190.6 -215672929 607397239.3 -8.6E+07
Total
4612102287
4612102287

Squared
4.92614E+14
2.86987E+15
4.03451E+15
8.89698E+15
4.71101E+15
5.20905E+15
1.62932E+15
5.67065E+15
3.14201E+15
7.41487E+15
4.40709E+16

91

Table 2.60 Projected supplies of sulfuric acid using four methods


ASLM
570,141,126
618,994,662
667,848,199
716,701,735
765,555,272
814,408,808
863,262,345
912,115,881
960,969,418
1,009,822,955

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

AGCM
704,976,753
953,393,543
1,289,346,415
1,743,680,969
2,358,112,054
3,189,053,821
4,312,799,410
5,832,525,820
7,887,767,133
10,667,225,876

SSLM
2120274795
2307491833
3286244755
4386772428
5609074853
6953152029
8419003957
10006630636
11716032066
13547208248

SPPM
561779464.9
494860660.6
406640826.2
297119961.8
166298067.5
14175143.07
-159248811.3
-353973795.7
-569999810.1
-807326854.5

ASLM
1,200,000,000

Net weight (kg)

1,000,000,000
800,000,000
600,000,000

y = 4E-47e0.063x
R = 0.9936

400,000,000
200,000,000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.38 Graphical Representations of Exponential Regression for the Projected Supply of
Sulfuric Acid using ASLM

92

AGCM
12,000,000,000
y = 5E-256e0.3019x
R = 1

Net weight (kg)

10,000,000,000
8,000,000,000
6,000,000,000
4,000,000,000
2,000,000,000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.39 Graphical Representations of Exponential Regression for the Projected Supply of
Sulfuric Acid using AGCM

SSLM
1.6E+10

Net weight (kg)

1.4E+10
1.2E+10
1E+10
8E+09

y = 3E-181e0.217x
R = 0.9847

6E+09
4E+09
2E+09
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.40 Graphical Representations of Exponential Regression for the Projected Supply of
Sulfuric Acid using SSLM

93

Table 2.61 The

value of each projection method for supply of sulfuric acid

Projection Method
ASLM
AGCM
SSLM
SPPM

Exponential Regression
Equation
y = 4E-47e0.063x
y = 5E-256e0.3019x
y = 3E-181e0.217x
NA

0.993
1
0.984
NA

Base on the
obtained from each of the Method, the table shows that the AGCM is to be used to
project the demand of caustic soda (sodium hydroxide) since it gave the highest value of
from the
gathered historical data.

Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
116,631,439.10
327,328,298.30
101,962,625.80
66,385,916

Table 2.62 Projected Supply Of Sulfuric Acid For The Next Ten Years Using Arithmetic Straight
Line Method
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Supply (Netweight kg)


784,236,138.2
1,060,623,466
1,434,417,623
1,939,947,571
2,623,640,784
3,548,287,113
4,798,805,351
6,490,042,115
8,777,319,265
11,870,698,542

94

Table 2.63 Summary of Projected Demand and Supply of Sulfuric Acid for the Next Ten Years
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Demand (kg)
304,425,988.18
319,650,535.88
335,636,473.41
352,421,878.39
370,046,732.73
388,553,017.84
407,984,814.67
428,388,408.69
449,812,400.12
472,307,819.72

Supply (kg)
784,236,138.21
1,060,623,466.21
1,434,417,622.79
1,939,947,570.58
2,623,640,784.11
3,548,287,112.73
4,798,805,351.17
6,490,042,115.20
8,777,319,264.84
11,870,698,542.38

Difference
479,810,150.03
740,972,930.33
1,098,781,149.38
1,587,525,692.19
2,253,594,051.39
3,159,734,094.89
4,390,820,536.50
6,061,653,706.50
8,327,506,864.71
11,398,390,722.66

14,000,000,000.00
12,000,000,000.00

Netweight (kg)

10,000,000,000.00
8,000,000,000.00
Supply
6,000,000,000.00

Demand

4,000,000,000.00
2,000,000,000.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Figure 2.41 Graphical Representations for the Demand and Supply of Sulfuric Acid for the Next
Ten Years

95

2.13 Historical Demand and Supply For Hydrochloric Acid


The following tables show the availability and resource of hydrochloric acid as a raw material which
proves the economical feasibility of chlorine and caustic soda production.
Table 2.64 Historical Demand and Supply for Hydrochloric Acid [National Statistics Office (NSO) Public
Reference Unit, 2014]
Year
Demand
Supply
2005
7,631,520
6,979,518
2006
8,298,174
6,331,371
2007
9,504,311
8,682,722
2008
10,468,647
12,583,797
2009
11,554,007
13,648,082
2010
11,670,404
14,748,906
2011
14,926,192
14,119,806
2012
13,953,760
16,369,745
2013
9,875,903
19,831,565
2014
9,053,628
10,954,055
The Philippine market for hydrochloric acid does have a good demand and supply exchange for a
year then an exceeding amount of supply of the compound arose. The compound is available for its market
states that it has a higher supply than a demand.
25,000,000

20,000,000

15,000,000
Series2
Series3

10,000,000

5,000,000

0
1

10

Figure 2.42 Graphical representations of the Historical Demand and Supply for Hydrochloric Acid
[National Statistics Office (NSO) Public Reference Unit, 2014]

96

2.14 Projected Demand of Hydrochloric Acid


Based on its historical data, statistical projection of the demand of hydrochloric acid was made by
four different methods.
2.14.1 Arithmetic Straight Line Method (ASLM)
Arithmetic Straight Line Method assumes that the annual increase in the future will be the
same although the rate or increase in percent will keep on going down.
Table 2.65 Historical Values of Hydrochloric Acid Demand Using ASLM
Year Net Weight (kg)
A
N
X
Yc
Y - Yc
(Y - Yc)^2
2005
7,631,520
1,422,108 10 158012
2006
8,298,174
1,422,108 10 158012 7,789,532
508,642
2.58717E+11
2007
9,504,311
1,422,108 10 158012 8,456,186
1,048,125
1.09857E+12
2008
10,468,647
1,422,108 10 158012 9,662,323
806,324
6.50158E+11
2009
11,554,007
1,422,108 10 158012 10,626,659
927,348
8.59974E+11
2010
11,670,404
1,422,108 10 158012 11,712,019
-41,615
1731808225
2011 291,284,493 1,422,108 10 158012 11,828,416 279,456,077 7.80957E+16
2012
13,953,760
1,422,108 10 158012 291,442,505 -277,488,745
7.7E+16
2013
9,875,903
1,422,108 10 158012 14,111,772
-4,235,869 1.79426E+13
2014
9,053,628
1,422,108 10 158012 10,033,915
-980,287
9.60963E+11
Total
1.55117E+17
2.14.2 Arithmetic Geometric Curve Method (AGCM)
In this method, the rate of increase in the projected values is constant; however, the
amount of change keeps on increasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.66 Historical Values of Hydrochloric Acid Demand Using AGCM


Net weight (kg) (Y) Annual Increase % Increase
X
Yc
Absolute
7,631,520
256.4396545 97.48740719 7631422.513
8,298,174
666654
8.735533681 256.4396545 347.4837774 8297826.516
9,504,311
1206137
14.53496878 256.4396545 1238.569975 9503072.43
10,468,647
964336
10.14630098 256.4396545 4414.754541 10464232.25
11,554,007
1085360
10.36771992 256.4396545 15735.93583 11538271.06
11,670,404
116397
1.007416734 256.4396545 56089.11531 11614314.88
291,284,493
279614089
2395.924674 256.4396545 199923.8488 291084569.2
13,953,760
-277330733
-95.20957678 256.4396545 712607.876 13241152.12
9,875,903
-4077857
-29.22407294 256.4396545 2540017.051 7335885.949
9,053,628
-822275
-8.326074082 256.4396545

Squared
5.82386E+13
6.88539E+13
9.03084E+13
1.095E+14
1.33132E+14
1.34892E+14
8.47302E+16
1.75328E+14
5.38152E+13
8.55543E+16

97

2.14.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the percentage change of the
data for the year is decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.67 Historical Values of Hydrochloric Acid Demand Using SSLM


Net weight (kg) X
XY
Yc
Absolute
Squared
7,631,520
1
7631520 14093459.56 -6461939.564 4.17567E+13
8,298,174
2
16596348 19479242.93 -11181068.93 1.25016E+14
9,504,311
3
28512933 24865026.29 -15360715.29 2.35952E+14
10,468,647
4
41874588 30250809.65 -19782162.65 3.91334E+14
11,554,007
5
57770035 35636593.02 -24082586.02 5.79971E+14
11,670,404
6
70022424 41022376.38 -29351972.38 8.61538E+14
291,284,493
7 2038991451 46408159.75 244876333.3 5.99644E+16
13,953,760
8 111630080 51793943.11 -37840183.11 1.43188E+15
9,875,903
9
88883127 57179726.47 -47303823.47 2.23765E+15
9,053,628
10
90536280 62565509.84 -53511881.84 2.86352E+15
383294847 55 2552448786
6.8733E+16

2.14.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.68 Historical Values of Hydrochloric Acid Demand using SPPM


Net weight (kg) (Y) X
Bx
CX2
Yc
Absolute
7,631,520
-9 -24236025.14 -6.8E+07 -26140908.3 33772428
8,298,174
-7 -18850241.77 -4.1E+07 6067786.973 2230387
9,504,311
-5 -13464458.41 -2.1E+07 31570754.27 -2.2E+07
10,468,647
-3 -8078675.045 -7543944 50367993.59 -4E+07
11,554,007
-1 -2692891.682 -838216 62459504.93 -5.1E+07
11,670,404
1 2692891.682 -838216 67845288.29 -5.6E+07
291,284,493
3 8078675.045 -7543944 66525343.68 2.25E+08
13,953,760
5 13464458.41 -2.1E+07 58499671.09 -4.5E+07
9,875,903
7 18850241.77 -4.1E+07 43768270.52 -3.4E+07
9,053,628
9 24236025.14 -6.8E+07 22331141.97 -1.3E+07
383294847
383294847

Squared
1.14E+15
4.97E+12
4.87E+14
1.59E+15
2.59E+15
3.16E+15
5.05E+16
1.98E+15
1.15E+15
1.76E+14
6.28E+16

98

Table 2.69 Projected demand of hydrochloric acid using four methods


ASLM
9,211,640
9,369,652
9,527,664
9,685,676
9,843,688
10,001,700
10,159,712
10,317,724
10,475,736
10,633,748

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

AGCM
32,270,720
115,025,644
409,997,009
1,461,391,921
5,208,980,313
18,566,871,431
66,179,692,378
235,890,666,851
840,807,877,887
2,996,972,694,824

SSLM
83948725
99580094
123558050
146563066
173312114
186728474
4951838392
251169692
187644170
181074574

SPPM
-5811714.55
-40660299.05
-82214611.53
-130474652
-185440420.4
-247111916.8
-315489141.2
-390572093.6
-472360773.9
-560855182.2

Net weight (kg)

ASLM
10,800,000
10,600,000
10,400,000
10,200,000
10,000,000
9,800,000
9,600,000
9,400,000
9,200,000
9,000,000
2014

y = 1E-07e0.0159x
R = 0.9996

2016

2018

2020

2022

2024

2026

Year

Figure 2.43 Graphical Representations of Exponential Regression for the Projected Demand of
Hydrochloric Acid using ASLM

99

AGCM
3,500,000,000,000
y = 0e1.271x
R = 1

Net weight (kg)

3,000,000,000,000
2,500,000,000,000
2,000,000,000,000
1,500,000,000,000
1,000,000,000,000
500,000,000,000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.44 Graphical Representations of Exponential Regression for the Projected Demand of
Hydrochloric Acid using AGCM

SSLM
6E+09

Net weight (kg)

5E+09
4E+09
y = 4E-128e0.1548x
R = 0.1659

3E+09
2E+09
1E+09
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.45 Graphical Representations of Exponential Regression for the Projected Demand of
Hydrochloric Acid using SSLM

100

Table 2.70 The

value of each projection method for demand of hydrochloric acid

Projection Method

Exponential Regression
Equation
y = 1E-07e0.0159x
y = 0e1.271x
y = 4E-128e0.1548x
NA

ASLM
AGCM
SSLM
SPPM

0.999
1
0.1659
NA

Base on the
obtained from each of the Method, the table shows that the AGCM is to be used to
project the demand of hydrochloric acid since it gave the highest value of
from the gathered historical
data but the equation is not applicable hence the ASLM is used to project the demand of hydrochloric acid
for the next ten years.
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
1,806,842.99
3,636,685.92
1,985,417.05
1,248,691.09

Table 2.71 Projected Demand of Hydrochloric Acid For The Next Ten Years Using Arithmetic
Geometric Curve Method
Year
Demand (Netweight kg)
2015
8,207,989.14
2016
8,339,540.11
2017
8,473,199.47
2018
8,609,001.01
2019
8,746,979.06
2020
8,887,168.52
2021
9,029,604.82
2022
9,174,323.97
2023
9,321,362.57
2024
9,470,757.77

101

2.15 Projected Supply of Hydrochloric Acid


Base on its historical data, statistical projection of the supply of hydrochloric acid is made by four
different methods.
2.15.1 Arithmetic Straight Line Method (ASLM)
Arithmetic Straight Line Method assumes that the annual increase in the future will be the
same although the rate or increase in percent will keep on going down.
Table 2.72 Historical Values of Hydrochloric Acid Supply using ASLM
Year Net Weight (kg)
A
N
x
Yc
Y - Yc
2005
6,979,518
3,974,537 10 441615.2222
2006
6,331,371
3,974,537 10 441615.2222 7,421,133 -1,089,762
2007
8,682,722
3,974,537 10 441615.2222 6,772,986 1,909,736
2008
12,583,797
3,974,537 10 441615.2222 9,124,337 3,459,460
2009
13,648,082
3,974,537 10 441615.2222 13,025,412
622,670
2010
14,748,906
3,974,537 10 441615.2222 14,089,697
659,209
2011
14,119,806
3,974,537 10 441615.2222 15,190,521 -1,070,715
2012
16,369,745
3,974,537 10 441615.2222 14,561,421 1,808,324
2013
19,831,565
3,974,537 10 441615.2222 16,811,360 3,020,205
2014
10,954,055
3,974,537 10 441615.2222 20,273,180 -9,319,125
Total

(Y - Yc)^2
1.18758E+12
3.64709E+12
1.19679E+13
3.87718E+11
4.34556E+11
1.14643E+12
3.27003E+12
9.12164E+12
8.68461E+13
1.18009E+14

2.15.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant; however, the
amount of change keeps on increasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.73 Historical Values of Hydrochloric Acid Supply using AGCM


Net weight (kg) (Y) Annual Increase % Increase
X
Yc
Absolute
6,979,518
8.595174928 5215310.312 1764207.688
6,331,371
-648147
-9.286414907 8.595174928 5663575.357 667795.6434
8,682,722
2351351
37.13810168 8.595174928 6150369.566 2532352.434
12,583,797
3901075
44.92917083 8.595174928 6679004.589 5904792.411
13,648,082
1064285
8.457582397 8.595174928 7253076.716 6395005.284
14,748,906
1100824
8.065778034 8.595174928 7876491.348 6872414.652
14,119,806
-629100
-4.265401108 8.595174928 8553489.557 5566316.443
16,369,745
2249939
15.93463111 8.595174928 9288676.947 7081068.053
19,831,565
3461820
21.14767212 8.595174928 10087054.98 9744510.021
10,954,055
-8877510
-44.76454581 8.595174928

Squared
3.11243E+12
4.45951E+11
6.41281E+12
3.48666E+13
4.08961E+13
4.72301E+13
3.09839E+13
5.01415E+13
9.49555E+13
3.09045E+14

102

2.15.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the percentage change of the
data for the year is decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.74 Historical Values of Hydrochloric Acid Supply using SSLM


Net weight (kg) (Y) X
XY
Yc
Absolute
Squared
6,979,518
1 6979518 7668152.418 -688634.4182 4.74217E+11
6,331,371
2 12662742 8725220.036 -2393849.036 5.73051E+12
8,682,722
3 26048166 9782287.655 -1099565.655 1.20904E+12
12,583,797
4 50335188 10839355.27 1744441.727 3.04308E+12
13,648,082
5 68240410 11896422.89 1751659.109 3.06831E+12
14,748,906
6 88493436 12953490.51 1795415.491 3.22352E+12
14,119,806
7 98838642 14010558.13 109247.8727 11935097695
16,369,745
8 130957960 15067625.75 1302119.255 1.69551E+12
19,831,565
9 178484085 16124693.36 3706871.636 1.37409E+13
10,954,055
10 109540550 17181760.98 -6227705.982 3.87843E+13
124249567 55 770580697
7.09813E+13

2.15.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Table 2.75 Historical Values of Hydrochloric Acid Supply using SPPM


Net weight (kg) (Y) X
Bx
CX2
Yc
Absolute
6,979,518
-9 -4756804.282 -4512062 4994337.964 1985180
6,331,371
-7 -3699736.664 -2729519 7833948.552 -1502578
8,682,722
-5 -2642669.045 -1392612 10227923.4 -1545201
12,583,797
-3 -1585601.427 -501340 12176262.5 407534.5
13,648,082
-1 -528533.8091 -55704.5 13678965.86 -30883.9
14,748,906
1 528533.8091 -55704.5 14736033.48 12872.52
14,119,806
3 1585601.427 -501340 15347465.35 -1227659
16,369,745
5 2642669.045 -1392612 15513261.49 856483.5
19,831,565
7 3699736.664 -2729519 15233421.88 4598143
10,954,055
9 4756804.282 -4512062 14507946.53 -3553892
124249567
124249567

Squared
3.94E+12
2.26E+12
2.39E+12
1.66E+11
9.54E+08
1.66E+08
1.51E+12
7.34E+11
2.11E+13
1.26E+13
4.48E+13

103

Table 2.76 Projected supplies of hydrochloric acid using four methods


ASLM
11,395,670
11,837,285
12,278,901
12,720,516
13,162,131
13,603,746
14,045,362
14,486,977
14,928,592
15,370,207

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

AGCM
11,895,575
12,918,021
14,028,347
15,234,108
16,543,506
17,965,450
19,509,612
21,186,497
23,007,513
24,985,049

SSLM
76776703
75978458
112877393
176175166
204723239
235984506
240038713
294657422
376801748
219083114

SPPM
13336835.43
11720088.6
9657706.018
7149687.697
4196033.633
796743.8273
-3048181.721
-7338743.012
-12074940.05
-17256772.82

Net weight (kg)

ASLM
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2014

y = 1E-22e0.0332x
R = 0.9982

2016

2018

2020

2022

2024

2026

Year

Figure 2.46 Graphical Representations of Exponential Regression for the Projected Supply of
Hydrochloric Acid using AGCM

104

AGCM
30,000,000

Net weight (kg)

25,000,000
20,000,000
15,000,000

y = 8E-66e0.0825x
R = 1

10,000,000
5,000,000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.47 Graphical Representations of Exponential Regression for the Projected Supply of
Hydrochloric Acid using AGCM

SSLM
400000000

Net weight (kg)

350000000
300000000
250000000
200000000
y = 2E-133e0.1607x
R = 0.7927

150000000
100000000
50000000
0
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.48 Graphical Representations of Exponential Regression for the Projected Supply of
Hydrochloric Acid using SSLM

105

Table 2.77 The

value of each projection method for supply of hydrochloric acid

Projection Method

Exponential Regression
Equation
y = 1E-22e0.0332x
y = 8E-66e0.0825x
y = 2E-133e0.1607x
NA

ASLM
AGCM
SSLM
SPPM

0.998
1
0.792
NA

Base on the
obtained from each of the Method, the table shows that the AGCM is to be used to
project the supply of hydrochloric acid since it gave the highest value of
from the gathered historical
data.

Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
3,435,243.89
5,830,307.67
2,664,232.49
2,115,828.61

Table 2.78 Projected Supply Of Sulfuric Acid For The Next Ten Years Using Arithmetic Straight
Line Method
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Supply (Netweight kg)


12,577,709.12
13,659,382.95
14,834,079.94
16,109,800.02
17,495,231.11
18,999,808.25
20,633,777.94
22,408,267.82
24,335,362.55
26,428,186.02

106

Table 2.79 Summary of Projected Demand and Supply of Sulfuric Acid for the Next Ten Years
Year
2015

Demand (kg)
8,207,989.14

2016
8,339,540.11
2017
8,473,199.47
2018
8,609,001.01
2019
8,746,979.06
2020
8,887,168.52
2021
9,029,604.82
2022
9,174,323.97
2023
9,321,362.57
2024
9,470,757.77

Supply (kg)
12,577,709.12
13,659,382.95
14,834,079.94
16,109,800.02
17,495,231.11
18,999,808.25
20,633,777.94
22,408,267.82
24,335,362.55
26,428,186.02

Difference
4,369,719.97
5,319,842.84
6,360,880.48
7,500,799.02
8,748,252.04
10,112,639.73
11,604,173.12
13,233,943.85
15,013,999.99
16,957,428.25

30,000,000.00

Netweight (kg)

25,000,000.00
20,000,000.00
Supply

15,000,000.00

Demand
10,000,000.00
5,000,000.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Figure 2.49 Graphical Representations for the Demand and Supply of Hydrochloric Acid for the
Next Ten Years

107

MARKET SHARE
Supply

Year

Demand

2017
2018
2019
2020
2021
2022
2023
2024
2025
2026

25120902.52
26751771.35
28488517.47
30338014.52
32307582.38
34405016.14
36638616.95
39017224.9
41550253.95
44247729.24

16097136.06
17915066.93
19938305.92
22190039.51
24696072.75
27485124.97
30589158.95
34043747.16
37888479.46
42167416.81

Unsatisfied
Demand
9,023,766.46
8,836,704.41
8,550,211.54
8,147,975.01
7,611,509.63
6,919,891.17
6,049,458.00
4,973,477.74
3,661,774.48
2,080,312.43

% Unsatisfied
Demand
35.92135
33.03222
30.01283
26.85731
23.55951
20.11303
16.51115
12.74688
8.81288
4.70151

Unsatisfied Demand = Demand Supply


% Unsatisfied Demand =

x 100

RELATED PLANT CAPACITY


Year

Demand Kg

% Market Share

Plant Capacity
(kg)

2017
2018
2019
2020
2021
2022
2023
2024
2025
2026

25120902.52
26751771.35
28488517.47
30338014.52
32307582.38
34405016.14
36638616.95
39017224.90
41550253.95
44247729.24

32 %
43 %
50 %
47 %
44 %
41 %
39 %
37 %
34 %
32 %

7,976,784.89
11,395,406.99
14,244,258.74
14,244,258.74
14,244,258.74
14,244,258.74
14,244,258.74
14,244,258.74
14,244,258.74
14,244,258.74

Daily
Production
(kg)
17093.110480
21366.38810
23740.43123
22293.14281
20934.08545
19657.88033
18459.47654
17334.13106
16277.39005
15285.07116

Utilization
70 %
80 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %

Plant Capacity = Demand (kg) x Market Share

108

MARKET ENVIRONMENT
Included in the study of market environment is the selling price, competitiveness of chlorine and
sodium hydroxide, transportation of both products, channels of distribution and the general trade practices
for chlorine and sodium hydroxide. The mentioned aspect of the market is important since there is a need
to know if both product chlorine and sodium hydroxide would be feasible for production and manufacture.
MARKET SELLING PRICE OF CHLORINE
2.16 Selling Price Study of Chlorine
Several factors will determine the selling price of the product including manufacturing cost,
depreciation cost, taxes, insurance cost, and the flow of supply and demand. The data presented in table
12 is the historical selling price of chlorine for the past ten years.
Table 2.80 Historical Market Price of Chlorine [National Statistics Office (NSO) Public Reference Unit,
2014]
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

Php/kg
101.07
84.66
66.22
70.13
69.19
77.86
80.16
70.64
76.93
87.47

20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Figure 2.50 Graphical Representations of Historical Market Price Of Chlorine

109

2.17 Projected Market Price of Chlorine


Based on its historical data, statistical projection of the demand of hydrochloric acid was made by
four different methods.
2.17.1 Arithmetic Straight Line Method (ASLM)
Arithmetic Straight Line Method assumes that the annual increase in the future will be the
same although the rate or increase in percent will keep on going down.
Table 2.81 Historical Values of Chlorine Market Price using ASLM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total

Php/kg
(Y)
101.07
84.66
66.22
70.13
69.19
77.86
80.16
70.64
76.93
87.47

Yn - Yc

Yc

Absolute

Squared

-13.6
-13.6
-13.6
-13.6
-13.6
-13.6
-13.6
-13.6
-13.6
-13.6

10
10
10
10
10
10
10
10
10
10

-1.511111111
-1.511111111
-1.511111111
-1.511111111
-1.511111111
-1.511111111
-1.511111111
-1.511111111
-1.511111111
-1.511111111

99.56
83.15
64.71
68.62
67.68
76.35
78.65
69.13
75.42

14.90
-16.93
5.42
0.57
10.18
3.81
-8.01
7.80
12.05

221.9768901
286.587279
29.38844568
0.326167901
103.6550235
14.5245679
64.14230123
60.85733457
145.229279
926.6872889

2.17.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant; however, the
amount of change keeps on increasing.
Table 2.82 Historical Values of Chlorine Market Price using AGCM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Php/kg
(Y)
101.07
84.66
66.22
70.13
69.19
77.86
80.16
70.64
76.93
87.47

Annual
Increase
-16.41
-18.44
3.91
-.094
8.67
2.3
-9.50
6.29
10.54

%
increase
-16.20781326
-21.79277935
5.928147351
-1.400028974
12.53679279
3.005890097
-11.9305448
8.999216808
13.67753594

Yc

Absolute

Squared

93.308349
92.557759
91.813208
91.074645
90.342024
89.615296
88.894414
88.179331
87.47

94.06502533
93.30834888
92.55775928
91.81320753
91.07464515
90.31202387
89.61529593
88.89441393
88.17933083

7.004975
-8.64835
-26.3378
-21.6832
-21.8846
-12.482
-9.4553
-18.2544
-11.2493

49.06967009
74.79393841
693.6775639
470.16149
478.9376932
155.8009199
89.40262117
333.2236279
126.574442
2422.545299

110

2.17.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the percentage change of the
data for the year is decreasing.
Table 2.83 Historical Values of Chlorine Market Price using SSLM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Php/kg
(Y)
101.07
84.66
66.22
70.13
69.19
77.86
80.16
70.64
76.93
87.47

X2

XY

Yc

Absolute

Squared

1
2
3
4
5
6
7
8
9
10

1
4
9
16
25
36
49
64
81
100

101.07
169.32
198.66
280.52
345.95
467.16
561.12
565.12
692.37
874.7

81.58709091
80.88618182
80.18527273
79.4843636
78.78345455
78.08254545
77.38163636
76.68072727
75.97981818
75.2780909

19.48291
3.773818
-13.9653
-9.3543
-9.59345
-0.22255
2.778364
-6.04073
0.950182
12.19109

379.5837466
14.24170367
195.0288423
87.50411904
92.03437012
0.049526479
7.719304496
36.49038598
0.902845488
148.6226976

784.33

55

385

4255.99

962.1775418

2.17.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Table 2.84 Historical Values of Chlorine Market Price using SPPM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Php/kg
(Y)
101.07
84.66
66.22
70.13
69.19
77.86
80.16
70.64
76.93
87.47
784.33

XY

X2Y

Yc

Absolute

Squared

-9
-7
-5
-3
-1
1
3
5
7
9

-909.63
-592.62
-331.1
-210.39
-69.19
77.86
240.48
353.2
538.51
787.23

8186.67
4148.34
1655.5
631.17
69.19
77.86
721.44
1766
3769.57
7085.07

94.245727
85.105727
78.0755
73.155045
70.344364
69.643455
71.052318
74.570955
80.199364
87.937545

6.824273
-0.44573
-11.8555
-3.02505
-1.15436
8.216545
9.107682
-3.93095
-3.26936
-0.46755

46.57069826
0.198672802
140.5528803
9.150900002
1.332555405
67.51161921
82.9498681
15.45240364
10.68873859
0.218598752

28110.81

784.33

374.626935

111

Table 2.85 Projected market prices of chlorine using four methods


ASLM
85.96
84.45
82.94
81.43
79.91
78.40
76.89
75.38
73.87
72.36

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

AGCM
86.77
86.07
85.38
84.69
84.01
83.33
82.66
82.00
81.34
80.68

SSLM
74.58
73.88
73.18
72.48
71.77
71.07
70.37
69.67
68.97
68.27

SPPM
97.79
109.74
123.81
139.99
158.28
178.67
201.18
225.79
252.52
281.36

Market Price

ASLM
18000000.00
16000000.00
14000000.00
12000000.00
10000000.00
8000000.00
6000000.00
4000000.00
2000000.00
0.00
2014

y = 5E-215x67
R = 0.9983

2016

2018

2020

2022

2024

2026

Year

Figure 2.51 Graphical Representations of Exponential Regression for the Projected Market Price of
Chlorine using ASLM

112

AGCM
30000000.00
y = 8E-66e0.0825x
R = 1

Market Price

25000000.00
20000000.00
15000000.00
10000000.00
5000000.00
0.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.52 Graphical Representations of Exponential Regression for the Projected Market Price of
Chlorine using AGCM

SSLM
30000000.00
y = 4E-34e0.0465x
R = 0.9965

Market Price

25000000.00
20000000.00
15000000.00
10000000.00
5000000.00
0.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.53 Graphical Representations of Exponential Regression for the Projected Market Price of
Chlorine using SSLM

113

SPPM
15000000.00

Market Price

10000000.00
5000000.00
0.00
2014
-5000000.00

2016

2018

2020

2022

2024

2026

-10000000.00
-15000000.00
-20000000.00

Year

Figure 2.54 Graphical Representations of Exponential Regression for the Projected Market Price of
Chlorine using SPPM
Table 2.86 The

of Each Projection Method of Market Selling Price of Chlorine

Projection Method
ASLM
AGCM
SSLM
SPPM

Equation
y = 4E+129x-38.62
y = 1E+09e-0.008x
y = 3E+10e-0.01x
y = 2E-102e0.1185x

0.9994
1
0.9998
0.9997

Base on the
values obtained from each of the four statistical methods, the AGCM gave the
highest
value from the historical data gathered hence, therefore AGCM should be use to project the
price of chlorine for the next ten years.
Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
9.62
16.41
9.81
6.12

114

Table 2.87 Projected Market Price of Chlorine for the Next Ten Years Using Arithmetic Geometric Curve
Method
Year
Price (pesos/kg)
2015
86.77
2016
86.07
2017
85.38
2018
84.69
2019
84.01
2020
83.33
2021
82.33
2022
82.66
2023
81.00
12024
80.68

115

MARKET SELLING PRICE OF CAUSTIC SODA (SODIUM HYDROXIDE)


2.18 Selling Price Study of Sodium Hydroxide
Several factors will determine the selling price of the product including manufacturing cost,
depreciation cost, taxes, insurance cost, and the flow of supply and demand. The data presented in table 1
is the historical selling price of sodium hydroxide for the past ten years.

Market Price (php/kg)

Table 2.88 Historical Market Price of Sodium Hydroxide [National Statistics Office (NSO) Public Reference
Unit, 2014]
Year
Market Price
(Php/kg)
2005
40.55
2006
40.25
2007
35.05
2008
36.65
2009
40.20
2010
39.10
2011
39.45
2012
42.05
2013
44.0
2014
45.75

20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Year

Figure 2.55 Graphical Representations For The Historical Market Price Of Caustic Soda

116

2.17.1 Projected Market Price of Sodium Hydroxide (Caustic Soda)


Based on its historical data, statistical projection of the market price of Sodium Hydroxide
(Caustic Soda) is made by four different methods.
2.17.1 Arithmetic Straight Line Method (ASLM)
Arithmetic Straight Line Method (ASLM) assumes that the annual increase in the future will
be the same although the rate or increase in percent will keep on going down.
Table 2.89 Historical Values of Sodium Hydroxide (Caustic Soda) Market Price Using ASLM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTAL

Php/kg
(Y)
40.55
40.25
35.05
36.65
40.20
39.10
39.45
42.05
44.0
45.75

Yn-Yc

Yc

5.2
5.2
5.2
5.2
5.2
5.2
5.2
5.2
5.2
5.2

10
10
10
10
10
10
10
10
10
10

0.577777778
0.577777778
0.577777778
0.577777778
0.577777778
0.577777778
0.577777778
0.577777778
0.577777778
0.577777778

41.13
40.83
35.63
37.23
40.78
39.68
40.03
42.63
45.18

Absolute
0.88
-5.78
1.02
2.97
-1.68
-0.23
2.02
1.97
0.57
Total

Squared
0.770493827
33.38271605
1.044938272
8.834104938
2.814938272
0.051882716
4.089382716
3.889660494
0.327438272
55.20555556

2.17.2 Arithmetic Geometric Curve Method (AGCM)


In this method, the rate of increase in the projected values is constant however; the
amount of change keeps on increasing.
Table 2.90 Historical Values of Sodium Hydroxide (Caustic Soda) Market Price Using AGCM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Php/kg
(Y)
40.55
40.25
35.05
36.65
40.20
39.10
39.45
42.05
44.0
45.75

Annual
Increase
-0.3
-5.2
1.6
3.55
-1.1
0.35
2.6
2.55
1.15

%
increase
-0.765997472
-12.94371154
4.672007295
9.711745437
-2.736499488
0.779217089
6.700245871
6.02181647
2.5601712

Yc

Absolute

Squared

40.440989
41.06936
41.707494
42.355544
43.013663
43.682009
44.360738
45.050014
45.75

39.8222322
40.4409889
41.06935982
41.70749435
42.3555442
43.01366343
43.6820085
44.3607383
45.05001417

0.727768
-0.19099
-6.01936
-5.05749
-2.1554
-3.91366
-4.23201
-2.31074
-0.45001

0.529645977
0.036476758
36.23269265
25.57824914
4.646370815
15.31676147
17.90989595
5.339511469
0.202512756

Total

105.262471

117

2.17.3 Statistical Straight Line Method (SSLM)


For this method, the change in the figure is uniform, while the change in percentage of the
data for the year is decreasing.
Table 2.91 Historical Values of Sodium Hydroxide (Caustic Soda) Market Price Using SSLM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Php/kg
(Y)
40.55
40.25
35.05
36.65
40.20
39.10
39.45
42.05
44.0
45.75

X2

XY

Yc

Absolute

Squared

1
2
3
4
5
6
7
8
9
10

1
4
9
16
25
36
49
64
81
100

40.55
80.5
105.15
146.6
201
234.6
276.15
336.4
401.4
457.5

37.10454545
37.82909091
38.55363636
39.27818182
40.00272727
40.72727273
41.45181818
42.17636364
42.90090909
43.62545455

3.445455
2.420909
-3.50364
-2.62818
0.197273
-1.62727
-2.00182
-0.12636
1.699091
2.124545

11.871157
5.860800082
12.2754677
6.90733966
0.03891652
2.64801652
4.00727603
0.01596776
2.88690991
4.51369338

403.65

55

385

2279.85

51.0255454

2.17.4 Statistical Parabolic Projection Method (SPPM)


In SPPM, the change in the predicted values may be increasing or decreasing while the
percentage change of the values for the prior year may also be increasing or decreasing.
Table 2.92 Historical Values of Sodium Hydroxide (Caustic Soda) Market Price Using SPPM
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTA
L

Php/kg
(Y)
40.55
40.25
35.05
36.65
40.20
39.10
39.45
42.05
44.0
45.75
403.65

XY

X2Y

Yc

Absolute

Squared

-9
-7
-5
-3
-1
1
3
5
7
9

-364.95
-281.75
-175.25
-109.95
-40.2
39.1
118.35
210.25
312.2
411.75

3284.55
1972.25
876.25
329.85
40.2
39.1
355.05
1051.25
2185.4
3705.75

40.054545
38.812424
38.06197
37.803182
38.036061
38.760606
39.976818
41.684697
43.884242
46.575455

0.495455
1.437576
-3.01197
-1.15318
2.163939
0.339394
-0.52682
0.365303
0.715758
-0.82545

0.245475207
2.066624059
9.071961455
1.329828306
4.682633701
0.115188246
0.277537397
0.133446304
0.512308907
0.681375207

13839.65

19.11637879

118

Table 2.93 Projected market prices of sodium hydroxide (caustic soda) using four methods
ASLM
AGCM
SSLM
SPPM
2015
46.33
46.46
44.35
49.76
2016
46.91
47.18
45.07
53.43
2017
47.48
47.92
45.80
57.60
2018
48.06
48.66
46.52
62.26
2019
48.64
49.42
47.25
67.41
2020
49.22
50.18
47.97
73.05
2021
49.79
50.96
48.70
79.18
2022
50.37
51.76
49.42
85.81
2023
50.95
52.56
50.15
92.92
2024
51.53
53.38
50.87
100.53

Market Price (Php/kg)

ASLM
18000000.00
16000000.00
14000000.00
12000000.00
10000000.00
8000000.00
6000000.00
4000000.00
2000000.00
0.00
2014

y = -6E-09x3 + 3E-05x2 + 441615x - 9E+08


R = 1

2016

2018

2020

2022

2024

2026

Year

Figure 2.56 Graphical Representations of Polynomial Regression for the Projected Market Price of
Sodium Hydroxide (Caustic Soda) using ASLM

119

AGCM
Market Price (Php/kg)

30000000.00
y = 59292x2 - 2E+08x + 2E+11
R = 1

25000000.00
20000000.00
15000000.00
10000000.00
5000000.00
0.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.57 Graphical Representations of Polynomial Regression for the Projected Market Price of
Sodium Hydroxide (Caustic Soda) using AGCM

SSLM
Market Price (Php/kg)

30000000.00
y = 1E+06x - 2E+09
R = 1

25000000.00
20000000.00
15000000.00
10000000.00
5000000.00
0.00
2014

2016

2018

2020

2022

2024

2026

Year

Figure 2.58 Graphical Representations of Polynomial Regression for the Projected Market Price of
Sodium Hydroxide (Caustic Soda) using SSLM

120

SPPM
15000000.00
Market Price (Php/kg)

10000000.00
5000000.00
0.00
2014
-5000000.00

2016

2018

2020

2022

2024

2026

-10000000.00
-15000000.00
-20000000.00

y = -222818x2 + 9E+08x - 9E+11


R = 1
Year

Figure 2.59 Graphical Representations of Polynomial Regression for the Projected Market Price of
Sodium Hydroxide (Caustic Soda) using SPPM

Table 2.94 The


Projection Method
ASLM
AGCM
SSLM
SPPM

of Each Projection Method Sodium Hydroxide (Caustic Soda)


Equation
y = 0.5778x - 1117.9
y = 0.0059x2 - 23.15x + 22649
y = -4E-15x2 + 0.7245x - 1415.6
y = 0.2458x2 - 987.28x + 991280

1
1
1
1

Base on the
values obtained from each of the four statistical methods, the ASLM, AGCM and
SPPM gave the highest
value from the historical data gathered. Using equation of AGCM and SPPM is
not applicable for projecting the market price of caustic soda (sodium hydroxide) hence, ASLM should be
use to project the price of caustic soda for the next ten years.

121

Projection Method
ASLM
AGCM
SSLM
SPPM

Standard Deviation
2.35
3.42
2.25
1.38

Table 2.95 Projected Market Selling Price of Sodium Hydroxide (Caustic Soda) for the Next Ten Years
Using Arithmetic Straight Line Method
Year
Price (pesos/kg)
2015
46.33
2016
46.91
2017
47.48
2018
48.06
2019
48.64
2020
49.22
2021
49.79
2022
50.37
2023
50.95
2024
51.53

The price of sodium hydroxide (caustic soda) is expected to increase in the next ten years
due to economic changes that will happen throughout the years. Its price will increase because of the
groaning demand for sodium hydroxide (caustic soda) most especially to the industry of polyvinyl chloride
and others uses.

122

2.18 COMPETITIVENESS OF THE PRODUCT


Primarily, the company has a goal of providing high quality product that will provide the local and
global market in terms of product standard while ensuring economic growth of the company. The PVC
producers is vital to the worlds chlorine industry, and hence the caustic, and of course, the large caustic
using industries.
Chlorine is produced by the electrolysis of salt co-producing 1.1 tons of caustic soda per 1 ton of
chlorine. As these two chemicals are produced in fixed relationship and sold into different markets with
variable prices, the cost of their production is included in the term Electrochemical Unit (ECU). The ECU is
defined as the sum of tons of chlorine and 1.1 ton of caustic and so avoids the question of allocations of
production and overhead costs for the manufacturer. The price of caustic soda has effective floor and
ceiling values by substitution effects notably with soda ash. In contrast, the effective value of chlorine,
include in EDC, VCM and PVC as the tradable chlorine chemicals, has no direct positive floor price. The
price of chlorine can even be driven to negative values during times of firm demand for caustic.
In Asia, with low demand for caustic soda, chlorine prices can represent as much as 80 per cent of
the value of the ECU. In contrast with a higher value for caustic soda in other regions, the chlorine cash
value to the manufacturer can even be negative, most notably in the Middle East and USA.
The vinyl chain is the real engine of growth for chlorine as it represents some 35 per cent of world
demand for chlorine whose significance as chlorine user grew by 10 per cent per year.
2.19 METHODS OF TRANSPORTATION OF THE PRODUCTS
As chlorine is hazardous to transport, there is virtually no deep sea transport. Accordingly
worldwide, chlorine is moved as the organic derivatives PVC, VCM or EDC that collectively represents
some 85 per cent of the trade in chlorine. A further 10 per cent of trade is represented by other chlorine
chemicals, notably methylene chloride, chloroform and chloroprene.
The following are general considerations for transportation of the products:
Road Tankers are in stainless, with a capacity from 24 to 30
Storage tank is located at a lower level than the truck
Re-opening used containers with caution. Containers which are opened must be carefully resealed
and kept upright to prevent leakage.

123

2.20 CHANNELS OF DISTRIBUTION

Figure 2.60 Channels of Distribution Chlorine and Caustic Soda


The company aims to market chlorine and caustic soda from manufacturing companies and
industries up to small unit of businesses that use chlorine and caustic soda as their raw material. This will
be done through publications, contacting small unit suppliers and/or direct selling of the product to the
company that will allow us to achieve a better margin than our competitors when selling at market price.
Whereas, it can be short as a direct transaction from one company to other, or may include several
interconnected intermediaries along the way such as suppliers, distributors and sales man. Each
intermediary receives the item at one pricing point and moves it to the next higher pricing point until it
reaches the final consumer.
From packaging and storage of the product produced, the sales marketing will be communicating
with the sales department of another companys distributors of the same product. The sales marketing
team can create advertisements whether through publication or in-line. It can attract which are agents of
distribution.

124

PROPOSED MARKETING PROGRAM

The company shall have its competitive product with acceptable price while employing an
environmental friendly economy. In addition, the company shall have advertisements to establish friendly
relationship with the existing marketing firms which aid the promotion of the product.
2.21

Preposition
Chlorine and Caustic Soda intermediate for best quality products.

2.22

Product
To ensure good quality product the Quality control is strictly implemented such as training
employees, laboratory tests and efficient condition of machinery. The company success will base on its
product quality that must satisfy the client's requirement in the event that the company effectively meets
them, then the product may be considered exceedingly adequate and of high quality. In this manner,
the company is committed to give the client high quality of products by guaranteeing that the procedure
of creating the product is entrenched and streamlined.

2.23

Place
The target market of the company is the PVC manufacturer such as Philippine Resins Industry
Incorporated,Atlanta Industry Incorporated,Mabuhay Vinyl Corporationand other small scale
businesses that use Chlorine and Caustic Soda as their raw material.
The product will be distributed mainly in the National Capital Region (NCR) and nearby
provinces like Bulacan, Cavite and Laguna where the prospected manufacturing plant is located. The
company will deliver it to different manufacturing plants that use chlorine and caustic soda as their raw
material.

2.24.1 Price
The product price will depend on the manufacturing cost and selling price of the product,
demand of the consumer, promotional strategies and channels of distribution.
2.25 Promotional Activities
In order to inform and persuade the target market, the company provides enough funds to set
paid marketing activities of sales promotion and advertising. High profile strategies will encourage
consumers to patronize the product. Sales promotions therefore consist of short term incentives to
encourage the purchase or sale of a product. The company will offer an installment basis of payment or
check account which is usually good for 15 to 30 days after the product has been delivered or
purchased.
For advertising, marketing specialist will be responsible for creating and maintaining marketing
communication tools by publishing brochures, updating product data sheets, creating and updating
website postings, press releases, and coordinating trade show activities. Product catalogues and prices
may also be sent via business email upon request by possible online costumers upon completing an
online registration. For orders and inquiries customers may send messages or contact our sales
department via phone calls. The company also plans to expand its market research to cope up with the
market trends and to locate additional customers of our product.

125

2.26 List of Competitors in Different Industries


Table 2.83 List of Local Competitor/s
Description

Company
Name
Mabuhay Vinyl Mabuhay Vinyl Corporation is the first and largest chlor-alkali
Corporation producer in the Philippines. It is the countrys leading
manufacturer of caustic soda and hydrochloric acid and the
only company that produces chlorine in commercial quantities.
In addition, it supplies more than 50% of the countrys
requirement for sodium hypochlorite. The products end up in
the manufacture of many useful consumer products that are
important in our daily lives. The company is backed by a team
of technically skilled managers with long and extensive
experience in the field of PVC and chlor-alkali production.
Through the years, MVC continues to affirm its commitment to
quality. After successfully passing stringent tests and
inspection, its operations in Luzon, Visayas and Mindanao
were all issued ISO 9002 certification the internationally
recognized standard of world-class quality.
Company
Name
AQUS Inc

Qingdao
Baigong
Industrial and
Trading Co,
Ltd
CellMark
Chemicals

Table 2.84 List of International Competitors


Description
AQUS Inc (Korea) manufactures and supplies a full range of
chlorination system & equipment, chlorine gas evaporizer,
netralization unit and chemical feed uchlorination equipment
for drink water treatment field, long experience in supplying
products home & worldwide. Our competitive pricing, strong
commitment to service and loyalty towards our customers are
reasons to choose us for all your water needs.

Location
3/F PhilAm Life Bldg.,
126 LP Leviste St.,
Salcedo Village, Makati
City

Location
Na 606, ShillaTechnoville, 39-3, DangDong, Gunpo City,
Gyeonggi-Do, 435-717,
Korea

We could supply wide range of gas cylinders, such as 3-1303, Weidong Rock
seamless steel gas cylinders, aluminum alloy gas cylinders,
Internation Mansion,
acetylene cylinders, CNG cylinders LPG cylinders, Liquid Licang District, Qingdao
Chlorine Cylinders and Liquid Ammonia Cylinders, etc.
City, Shandong Province,
China
CellMark Chemicals supplies chemical products to a broad
CellMark AB
range of industrial, health and personal care clients from its
LillaBommen 3C P O
offices around the world. The division is proud of its history of
Box 11927 SE-404 39
serving and improving the communities in which its
Gothenburg, Sweden
professionals work and live, as well as its ability to forge
strong local ties. Additionally, its custom manufacturing and
regulatory compliance services add significant value to
customers on all continents.

126

ERCO
Worldwide
Chlorine
Products

Allied
Universal
Corporation
Chlorine
Products

ERCO Worldwide has a 100 year history of producing


chemicals and a long history of supplying environmentally
preferred chlorine dioxide technology to the pulp and paper
industry. ERCO Worldwide'schloralkali business serves a
variety of industries including municipal and industrial water
treatment, food processing, fertilizers, agricultural
intermediates, and oil and gas. ERCO Worldwide is the
second largest producer of sodium chlorate in the world. It has
the world's largest installed base of modern chlorine dioxide
generators and related technology and is the second largest
producer of potassium products in North America. It has the
world's largest installed base of modern chlorine dioxide
generators and related technology and is the second largest
producer of potassium products in North America.
Allied Universal Corporation was established in 1954 as a
start up business, and through humble beginnings in the
garage of our founder, grew to take its place as the largest
bleach and chlorine repackager in the United States. Allied
boasts six domestic plants and two foreign facilities enabling
us to service 21 states and 24 Caribbean, South American,
and Central American countries. As a leader in the industry,
we are active members in The Chlorine Institute and the
National Association of Chemical Distributors (NACD). We
produce Sodium Hypochlorite (bleach), Liquid Sodium
Bisulfite, and Pool Acid. We also repackage Chlorine Gas, and
Sulfur Dioxide.

302 The East Mall Suite


200 Toronto, Ontario
M9B 6C7 Canada

3901 NW 115 AVENUE


MIAMI, FLORIDA 33178

List of Possible Clients in Different Industries


A. Polyvinyl Chloride (PVC)
Company Names: APC Chemical Industries, Inc.
Address: U1809 Medical Plaza Ortigas, San Miguel Avenue, Ortigas Center, Pasig City
Description: A.P.C. Chemical Industries, Inc. was incorporated and registered with the S.E.C.
of the Philippines on Dec. 11, 2006, primarily to engage in the distribution of
commodity and specialty chemicals, industrial solvents, laboratory & intermediate
chemicals, plastics and other allied products.
Company Names: Philippine Resins Industries, Inc.
Address: Unit 2104 Antel 2000 Corporate Center, Herrera St., Salcedo Village, Makati City
Description: PRII is one of Asia's most modern polyvinyl chloride (PVC) manufacturing plants.
Its world-scale capacity can supply almost all the domestic PVC requirements,
making the country self-sufficient in PVC resins supply. The plant utilizes state-ofthe-art technology provided by Tosoh Corporation (Japan), PRIIs major
shareholder, in the production of high quality PVC resins.

127

B. Pulp and Paper Industry


Company Names: C.B. ANDREW PHILIPPINES, INC.
Address:
Bldg. Y-1, JY & Sons Compound, Veterans Rd. PHIVIDEC Industrial Estate,
Taguig City 1630 Philippines.
Description:

C. B. Andrew Philippines, Inc., a Philippine based corporation, is a manufacturer of


a wide range of specialty chemicals for industrial and agricultural applications. The
company started operations in 1991 supplying the Philippine domestic pulp and
paper industry, under the name of Prochem Technology Philippines, Inc. In 1998,
to reflect a global perspective, the company name was changed to Prochem
Technology Asia-Pacific, Inc. and started to export some of its products to
Indonesia and Thailand. Its main line of products is paper recycling additives,
emulsion polymers, pulp and paper specialty chemicals and water clarification
technologies. With the companys continuous product development and process
improvements said products were successfully marketed in the region allowing the
company to grow its market base internationally to include not only the Asian
region, but the Middle East and North America as well.

Company Names: Clariant (Philippines) Corporation


Address:
9/F Unit 908 ALPAP II Bldg. Trade St., Madrigal Business Park, Ayala Alabang,
Muntinlupa
Description: As one of the worlds leading specialty chemical companies, Clariant contributes to
value creation with innovative and sustainable solutions for customers from many
industries. Our portfolio is designed to meet very specific needs with as much
precision as possible. At the same time, our research and development is focused
on addressing the key trends of our time. These include energy efficiency,
renewable raw materials, emission-free mobility, and conserving finite resources.
Our business units are organized into four Business Areas: Care Chemicals,
Natural Resources, Catalysis & Energy and Plastics & Coatings.
C. Surfactants
Company Names: Clorox International Philippines, Inc.
Address:
15th Floor, The JMT Corporate Condominuim, ADB Avenue, Ortigas Center, Pasig
City
Description: Clorox is a global company with leading brands that have become household
names: our namesake bleach and cleaning products; Green Works naturally
derived cleaning products; Ayudn and Poett home care products; Pine-Sol
dilutable cleaner; Fresh Step cat litter; Kingsford charcoal; Hidden Valley and
K C Masterpiece dressings and sauces; Brita water filtration products; Glad
bags, wraps and containers; and Burt's Bees natural personal care products. We
manufacture products in more than two dozen countries and market them in more
than 100 countries. Clorox trades on the New York Stock Exchange under the
symbol CLX.

128

Company Names: Atlantic Coatings, Inc.


Address:
Brgy. Hugo Perez, TreceMartirez City, Cavite
Description: Pacific Paint (BOYSEN) Philippines, Inc. was founded in 1953 as a repacker of
paint and lacquer thinners under the trade name Columbus. In 1958, the company
expanded its operations and started paint production with the introduction of
NATION House Paints, an economy grade paint.
Company Names: BASF Philippines, Inc.
Address:
11th /F, Hanjinphil Corporation Building, # 1128 University, Parkway North
Bonifacio Global City Philippines
Description: ASF is the worlds leading chemical company: The Chemical Company. In Asia
Pacific, BASF organizes its sales efforts around key industries, such as
automotive, construction, packaging, paint and coatings, and pharmaceuticals
industries.
Company Names: Chemlux Incorporated
Address:
Building 4 A CCMC Compound, Veterans Center, Western BicutanTaguig City
Description: Chemlux provides the cleaning chemicals and hygiene solutions you need, so you
can focus on running the business while we help you keep your facility safe and
clean. Our products are effective, to help ensure your customers satisfaction.
Simple to use systems increase productivity and promote worker safety.
Company Names: StepanPhils., Inc.
Address:
17/F Insularlife Corporate Center Insularlife Drive Filinvest Corporate City
AlabangMuntinlupa
Description: Stepan is one of the worlds largest merchant producers of surfactants, with more
than 1,800 employees and 16 manufacturing locations worldwide. We provide
surfactants expertise for commercial and industrial applications ranging from a
foaming agent for shampoo, to emulsifiers for agricultural insecticides, to agents
used in oil recovery.
Company Names: Green Chemicals Corporation
Address:
Unit 605 South Centar Tower, Madrigal Business Park, AlabangMuntinlupa City
Description: GreenChem is an industrial marketing and technical services company that
provides high quality chemicals, industrial materials and related services to the
Philippine microelectronics and photovoltaic manufacturing industries.
D. Oil Treatment
Company Names: Air LiquidePhils., Inc.
Address:
12F Ecotower Bldg. 32 Ave. Cor. 9th St. BGC Taguig City
Description: Air Liquide aims to deliver innovative gas solutions and technologies to customers,
driving their performance and helping them reduce their environmental impact.

129

Company Names: All Waste Services, Inc.


Address:
Km. 32 McArthur Highway, Guiguinto, Bulacan
Description: All Waste Services, Inc. was formerly known as InChem Environmental, Inc., a
treatment, storage and disposal (TSD) facility established in November 1996. It
was originally established, to cater to the environmental needs, particularly the
waste management requirements of the semiconductor industry. It has since
diversified to include car and food manufacturing, petrochemical, power producing,
pharma-ceutical and personal care companies, as well as academic institutions,
as members of its elite clientele. AWS commenced operating the facility in August
2012 and wishes to further enhance its service to include medical and pathological
e-waste, confidential papers destruction and other special wastes in the near
future.
Company Names: ASA Color & Chemical Industries, Inc.
Address:
Suite 309, Prince Jun Condominium #42 Timog Avenue, Quezon City
Description: ASACOLOR is a leading company in the manufacture and supply of liquid inks in
the Philippines for over three decades now. We offer expert service, innovative
and consistent world-class quality products, and we continue to leave a positive
impact on both the local and international market.
Company Names: Avestronics Industrial Sales and Services, Inc.
Address:
1107 Atlanta Center 31 Annapolis Center, Greenhills San Juan City
Description: Avestronics Industrial Sales and Services Inc. is committed to delivering the
highest standards of quality, in terms of our People, Products and Services (PPS).
E. Pharmaceutical
Company Names: Connell Bros. Pilipinas, Inc
Address:
Penthouse, The JMT Corporate Condominuim, ADB Ave., Ortigas Center Pasig
City 1604
Description: Connell Brothers is the largest and one of the most highly respected marketers
and distributors of specialty chemicals and ingredients in Asia-Pacific. Our
commitment is to ensure that your products are delivered into the hands of our
customers. We have an extensive network and infrastructure throughout AsiaPacific, with long-standing relationships in local markets. We represent a variety
of suppliers and products in multiple markets, including coatings and inks, plastics
and rubber, food ingredients, and personal and home care and other industrial
segments.
Company Names: Merck, Inc.
Address:
24th Floor GT Tower, Ayala Ave., Makati City
Description: Merck Millipore plays an integral part in the life science community, harnessing our
passion and innovation to help researchers and drug producers around the world.
As science advances, we advance with it, offering new insight and cutting-edge
technologies helping our customers solve the world's most challenging human
health issues.

130

F. Pesticides
Company Names: TexiconAgriventures Corp.
Address:
7/F Tower 1 A Rockwell Business Center Ortigas Ave., Pasig City 1605
Description: The Texicon Group of Companies is a reliable supplier of chemicals which caters
to the different major industries. We are committed to servicing the needs of both
small and integrated business establishments, ensuring quality of service through
quality products delivered in the most efficient, reliable manner, and adapted with
new technologies.
G. Industrial Solvents and Textile Industry
Company Names: Diversey Philippines Inc.
Address:
8th Floor, Bankmer Bldg. 6756 Ayala Ave., Makati City
Description: In 1957, Alfred W. Fielding and Marc Chavannes set out to create a new wall
covering by laminating two plastic sheets with air bubbles in between. Although
their invention never caught on as interior decor, the two men discovered their new
materials light weight and insulating properties were very usefulfirst as
greenhouse insulation and then as the packing material we now know as Bubble
Wrap. In 1960, Fielding and Chavannes founded Sealed Air Corporation with
Bubble Wrap as the companys signature brand.
Company Names: Himmel Industries, Inc.
Address:
6/F Alied Bank Bldg. Ctr. 6754 Ayala Ave., Makati City Plant: Pasco Ave., Bo.
Santolan Pasig City
Description: Himmel Industries, Inc. was established half a century ago, with the vision of our
founder, Dr. Lucio C. Tan to provide for the different manufacturing industries,
along with the general public with a reliable and dependable supply of chemicals
and solvents for their manufacturing requirements and daily use.
Company Names: Transworld Trading Co., Inc
Address:
4/F Don Pablo Bldg., Amorsolo St., Legaspi Village, Makati City
Description: TRANS WORLD TRADING COMPANY, INC. is among the top corporations in the
Philippines and is counted among the leaders in its various areas of business. Its
operations cover local and international trading activities, logistics services to
manufacturers, as well as market/product development in the agro-chemical
sector. Since 1946, it has become a symbol of trust and reliability, efficiently
serving the raw materials and machinery requirements of industries like plastics,
rubber, agriculture, food, water treatment, packaging and others. It also has
investments in solvents and bulk chemicals distribution, computer software,
hardware and systems integration, manufacture of zippers, plastic compounding
and printing inks, as well as in non-life insurance and real estate.
Company Names: WR Grace Philippines, Inc.
Address:
SilangangCanlubang Industrial Park, Calamba, Laguna

131

Description:

Grace is a leading global supplier of catalysts; engineered and packaging


materials; and specialty construction chemicals and building materials. The
company's three industry-leading business segmentsGrace Catalysts
Technologies, Grace Materials Technologies and Grace Construction Products
provide innovative products, technologies and services that improve the products
and processes of our customer partners around the world.

Supplier of the raw material


Company Names: International Chemical Industries, Inc.
Address:
317 San Frenando St., Binondo, Manila Plant: Km 32 McArthur Highway,
Tuktukan, Guiguinto, Bulacan
Description: Inchem was established in 1957 as International Chemical Industries, Inc. to
produce basic chemicals for the fast developing Philippine industrial sector. It
started out as a manufacturer of Caustic Soda (Sodium Hydroxide), Sodium
Hypochlorite and Ferric Chloride. Today, Inchem is looked to for its experience
and track record as a supplier of quality chemicals. Its product line has expanded
to supplying Calcium Chloride and Potassium Sulfate in addition to its original
three products.
Company Names: Arvin International Marketing Inc.
Address:
15th Floor Unit B, A place Building, Coral Way St., Pasay City
Description: Since 1982, AIM has been promoting health and providing economic opportunity
with an unparalleled product line and a rewarding compensation plan. As a leader
in the health and nutrition industry, AIM has pioneered green juice drinks and an
assortment of whole-food concentrates while maintaining a consistent income
source for its Member distributors.
Company Names: Brenntag Ingredients, Inc. (Formerly: EAC Chemical Ingredients, Inc.)
Address:
4/F Builders Center Bldg., Salcedo St., Legaspi Village, Makati City
Description: In October 2008, Brenntag acquired Rhodias chemical distribution operations in
Southeast Asia and extended its global distribution network into the Asia Pacific
Region. The countries included Australia, India, Indonesia, Malaysia, Hong Kong,
Philippines, Singapore, Taiwan, Thailand and Vietnam. Brenntag gained in Asia
access to an established base for expanding its own product portfolio, combined
with excellent local market knowledge, a wide range of services and long-term
customer relationships.
Company Names: Legaspi Import & Export Corporation (Solid State Multi-Products Corp.)
Address:
5/F Bloomingdale Bldg., 205 Salcedo St., Legaspi Village, Makati City
Description: Legaspi Import and Export Corporation is a trading company and one of the
largest distributor of chemical solvents in the Philippines while Tiger Land Realty
Corporation operates a private port jetty located at Mabacong, Batangas City. As
an acting Terminal Manager of the private port i make sure that company rules
and regulation are implemented especially when it comes to safety and security,
deliveries are released on time and arriving vessels are well coordinated to local
shipping agents

132

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