Market Trends of Sulfuric Acid Industry
Growing Consumption from Fertilizer Segment
- Sulfuric acid is a vital mineral acid made up of sulfur, hydrogen, and oxygen. It has a strong smell and is a highly corrosive, oily, and transparent liquid. It should always be handled with caution, even in its diluted form. When diluted with water, it releases heat in a ceramic exhaust reaction. It is an important industrial chemical used in fertilizer manufacturing processes.
- According to the UN Comtrade, Brazil led global agricultural fertilizer imports in 2022, with an import value of around USD 24.79 billion. The United States and China ranked second and third, importing approximately USD 13.25 billion and USD 4.95 billion, respectively.
- Around half of the global sulfuric acid supply is used in agriculture and farming, especially as fertilizer. Sulfuric acid is used to manufacture phosphate fertilizers, such as the superphosphate of lime and ammonium sulfate. Sulfuric acid increases crop yield, which helps farmers generate more revenue by producing highly nutritional crops.
- For instance, according to the National Bureau of Statistics of China, the production volume of phosphate fertilizer in China reached 9.84 million metric tons in 2022.
- Fertilizers replace the nutrients that crops remove from the soil. They can significantly improve crop yields and agricultural productivity. Mineral fertilizers supplement the soil's nutrient stocks with minerals that may be quickly absorbed and used by crops.
- Further, according to UN Comtrade, the import value of fertilizers to the United Kingdom (UK) reached USD 2,623.03 million in 2022, a growth of USD 1,285.14 million from the previous year.
- Agriculture is the primary source of livelihood globally; India and the United States are witnessing positive growth in agriculture. So, the market is likely to be driven by the need for fertilizers over the next few years.
- Agriculture is the primary source of livelihood globally; India and the United States are witnessing positive growth in agriculture. So, the market is likely to be driven by the need for fertilizers over the next few years.
- For instance, according to the Food and Agriculture Organization, the global capacity for producing ammonia, phosphoric acid, and potash in 2022 was 318,652 metric tons, thereby boosting the market demand for sulfuric acid in the forecast period.
- The agriculture sector in Latin America and the Caribbean has witnessed significant growth in the past. According to the Organization for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization of the United Nations (FAO), agricultural and fisheries production is expected to grow by 17% during 2018-2028. Around 53% of this growth is expected to come from increased crop production. Hence, the growing agricultural industry boosted the demand for fertilizers. This is expected to impact the growth of the sulfuric acid market.
- So, the market is likely to be driven by the growing use of sulfuric acid in fertilizers over the next few years.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the sulfuric acid market during the forecast period. Due to the high demand from the chemical, fertilizer, and other manufacturing sectors in countries like China, India, and Japan, the sulfuric acid market has been rapidly increasing.
- According to the National Bureau of Statistics of China, in 2022, the sulfuric acid production in China was 95.05 million metric tons, registering a growth of over 1.3% when compared to 93.83 million metric tons in 2021.
- China is the largest fertilizer manufacturer in the world. According to the National Bureau of Statistics of China, the nitrogen, phosphate, and potash fertilizer production volume in China accounted for 55.7 million tons in 2022 and registered growth when compared to 55.44 million tons in 2021.
- Similarly, as per the Department for Promotion of Industry and Internal Trade (India), the annual growth rate of fertilizer production in India reached 9.6 percent and is at its peak when compared to previous years' data.
- In a boost to the country's sulfuric acid expansion, India's leading private phosphatic fertilizer company, Coromandel International, unveiled a new sulphuric acid facility in Visakhapatnam in October 2023. With an investment of Rs 400 crore, the plant is poised to produce 1,650 metric tonnes per day (MTPD).
- Furthermore, Sulfuric acid is indirectly related to the pharmaceutical industry as it plays a role in the synthesis of certain chemicals and raw materials used in pharmaceutical manufacturing processes.
- According to the Ministry of Health, Labour and Welfare of Japan, the value of pharmaceutical drug imports to Japan reached JPY 3.41 trillion (USD 0.023 trillion ) in 2022 and registered a peak when compared with JPY trillion (USD 0.020 trillion) in the previous year.
- Moreover, Sulfuric acid is utilized in the automotive industry as it is a critical component in the manufacturing process of lead-acid batteries, commonly used to power vehicles.
- According to the Korea Automobile Manufacturers Association of Japan, the number of vehicles manufactured in South Korea will be valued at 3.76 million units in 2022, thus affecting the growth of batteries supporting sulfuric acid.
- All the factors mentioned above are expected to boost the demand for sulfuric acid in the Asian-Pacific region over the forecast period.
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