Where do US and Canada Import Salt From?

By Patrick Davis

Published:

Disseminated on behalf of Atlas Salt Inc. ValueTheMarkets, a trading name of Digitonic Ltd., was compensated by Atlas Salt Inc two hundred and sixty thousand US dollars starting 4th November 2024 for a period of 4 weeks until 30th November 2024 to produce and disseminate this content. Digitonic Ltd. does not own a position in Atlas Salt Inc.

In this article

North America imports a lot of salt. While imports meet industry demands, the region faces challenges, including high shipping costs and aging domestic mines.

Infographic | Where do US and Canada Import Salt From?

The widespread demand for salt across North American industries has created a reliance on imports to maintain supply stability. With salt essential for winter road safety, industrial production, and food processing, sourcing this mineral from abroad has become a necessary component of North American supply chains. However, meeting these needs comes with unique challenges that underscore the significance of managing both domestic resources and international logistics effectively.

The Scale of Salt Imports in North America

In 2022, the global trade of salt amounted to approximately $4.44 billion1. North America's reliance on imported salt is starkly evident, with substantial imports to meet various industrial, commercial, and residential needs. Approximately 25 million tonnes of de-icing salt is used annually on U.S. roads2, with much of this demand being met through imports from regions like Chile, Egypt, and Mexico. This high dependency on foreign salt is driven by the lack of economically viable alternatives for rock salt, which remains indispensable for road safety during winter months.

Salt’s Diverse Uses

Salt has played a vital role in human history, serving both as a necessity and a commodity. The modern salt industry spans multiple sectors, each with unique demands and applications. Considerable demand lies in de-icing where salt is essential for maintaining safe, ice-free roads in winter. The chemical sector also relies heavily on salt, which is critical in industrial processes. Meanwhile, salt remains a dietary staple used in the food industry for preservation and flavoring. Other uses include water treatment, animal feed, and medical applications, though the latter forms a very small market segment. This varied demand highlights salt’s indispensability across industries.

Challenges in the Salt Supply Chain

The North American salt import market faces several pressing challenges:

  • High Overseas Shipping Costs: As global shipping costs are volatile, especially during challenging geopolitical times, this can make forecasting import costs difficult. This volatility in global shipping costs complicates budgeting and financial planning for businesses involved in imports. When shipping costs rise, the expense of importing salt will also rise, impacting overall cost and supply chain efficiency.

  • Supply Chain Disruptions: General supply chain issues, such as delays and logistical constraints, further exacerbate the uncertainty in salt availability.

  • Aging Domestic Mines: Both the United States and Canada are grappling with aging salt mines. This not only affects the volume of domestically produced salt but also raises concerns about the long-term sustainability of these mines.

Salt Mining: A Path to North American Security

Atlas Salt Inc. (TSXV: SALT) (OTCQB: REMRF) is bringing North American investors a unique opportunity to invest in a defensive mining stock. The Great Atlantic Salt Project is the first new underground salt mine in North America in over 20 years, strategically located near key markets with excellent infrastructure including roads, a deep-water port, and access to high-voltage power. This reduces transportation costs and positions Great Atlantic as a low-cost, long-life producer of salt.

Furthermore, competing mines have aging assets, and international suppliers can be displaced on distance and carbon emissions, with Great Atlantic expected to be one of the world’s lowest greenhouse gas mining projects.

De-icing road salt is the biggest single individual market for salt in North America, and Atlas’ Great Atlantic Salt Project is situated right where it’s needed most. Salt is a non-cyclical commodity and a truly defensive investment. Best of all, an efficient salt mine drives incredible long-term free cash flow.

A comprehensive feasibility study, greenhouse gas emissions survey, and both environmental and economic assessments have confirmed the viability of the Great Atlantic Salt Project. With these milestones achieved, pre-construction development is now actively progressing.

Intrigued by this defensive growth stock? Amid the cyclicality of the mining sector, Atlas Salt stands out.

Sources

  1. Observatory of Economic Complexity. Salt, Sodium Chloride (Including Solution Salt Water), 2023. https://oec.world/en/profile/hs/salt-sodium-chloride-including-solution-salt-water

  2. Atlas Salt. Market Opportunity. https://atlassalt.com/market/

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