Market Data

In the market data, it will include about the market assessment production of phosphoric
acid, phosphoric acid market, current and future price of phosphoric acid, demand of
phosphoric acid, and also the import and export of phosphoric acid.

Market Assessment Production

In terms of production value and volume, phosphoric acid (H3PO4) is the second-
largest inorganic acid produced and used after sulfuric acid. The production of phosphate
compounds, which are largely used as transporters of phosphorus values in fertilizers, is by
far its largest use. Use in the manufacture of animal feeds is only of little significance.
Additionally, phosphatic acid is utilized in the production of phosphate compounds for use in
dentifrices, fire retardant chemicals, water treatment and detergent builders, as well as a
variety of other smaller industries. The amount of phosphoric acid used for its acidic
characteristics is quite little (e.g., treatment of metal surfaces, beverage acidulation). Between
phosphate rock and the final markets for phosphorus in phosphate form, phosphoric acid is
the most important intermediate product or processing step.

For phosphoric acid, the balance between supply and demand is supply-driven.
Operating rates will rise if all the projects that have been announced go forward. Downstream
phosphate fertilizer producing units are receiving significant investment from developing
regions. It is therefore anticipated that older phosphoric acid production facilities in areas
lacking local phosphate rock sources will experience increased pressure and ultimately be
compelled to close.

Local markets and China are our target markets. The demand for phosphoric acid is
extremely strong, however there isn't much competition in Malaysia for phosphoric acid
manufacturing. so that we can satisfy Malaysian demand. Due to the growing demand in
China, we also intend to ship there.
Phosphoric acid Market

The size of the global phosphoric acid market was anticipated to be USD 42.91 billion
in 2021, USD 45.08 billion in 2022, and USD 58.58 billion by 2027, growing at a CAGR of
5.32%. Over the forecast period, the market is anticipated to be driven by the high utilization
of phosphoric acid in the production of phosphate fertilizers such Mono-Ammonium
Phosphate (MAP) and Diammonium Phosphate (DAP).

After sulfuric acid, phosphoric acid is the inorganic acid that is consumed the most
globally. According to its intended function, it is produced industrially in three grades with
varying concentration levels. Food grade, agricultural grade, and industrial grade are the three
grades. Due to its extensive use in the production of both agricultural and industrial products,
agricultural grade phosphoric acid dominates the global market in both value and volume.

.
Figure 3.4.1: Global Phosphoric acid market (Source: RESEARCH AND MARKETS,
2021)
 The global phosphoric acid market has been divided into phosphate, industrial
application, fertilizer chemicals, food and beverages, household cleaning products, and others
based on application. Over the projected period, it is anticipated that the phosphate category
will contribute the most to revenue. Demand for phosphoric acid has increased as a result of
the rising requirement for phosphate salts for fertilizers.
Current price of Phosphoric acid

The table below shows that the current pricing of Phosphoric acid based on region in
the world referred to international price of Phosphoric acid website. For the pricing, that
updated, the highest price among 6 areas below is North America which is USD 1295.0/TON.
For Asia pacific, Europe, China, Middle East and Asia is USD 1716.0/TON, USD
2479.0/TON, USD 1650.0/TON, USD 1210.0/TON, USD 1229.0/TON respectively.

Table : Current price of Phosphoric acid based on area in the world (Source:
Chemanalyst, 2022)

Area Price unit

North America USD 1295.0/TON
Asia Pacific USD 1716.0/TON
Europe USD 2479.0/TON
China USD 1650.0/TON
Middle East USD 1210.0/TON
Asia USD 1220.0 /TON
Demand of Phosphoric acid

The demand for phosphate fertilizers has increased because of China's quickening
economic growth and rapid increase in agricultural output. The domestic production and
consumption of the commodity have increased because of this. A moderate growth rate in
production is predicted over the forecast period, nonetheless, it is a strict government
regulation.

Figure : Global phenol market (Source: Grand View Research, 2018)

A need for fast-growing chemicals exists because of the loss of agricultural land
caused by increasing population. This is one of the main factors favoring synthetic
compounds over those derived from plants or animals. Numerous fertilizer production
companies are based in the United States, which is one of the leading nations in North
America for the agrochemical industry.
 The production of phosphate fertilizer products such ammonium phosphates and triple
superphosphates is the main market for phosphoric acid. An estimated 80% of the global
phosphoric acid market is accounted for by fertilizer manufacturing, while 6% is accounted
for by animal feed. The remaining material is used in various industrial processes.

Figure : World consumption phenol (Source: IHS Markit, 2020)

China has emerged as the world's top producer and user of phosphoric acid, driven by
the country's booming economy and increasing demand for phosphate fertilizers. China's
phosphoric acid production capacity increased at a 3.1% average annual pace from 2008 to
2018. During the same time, phosphoric acid production and consumption increased at
average annual rates of 4.5% and 4.6%, respectively. Between 2018 and 2023, it is predicted
that China's use and production of phosphoric acid will expand slowly but steadily. Global
supply and demand are in balance because of supply. The phosphoric acid market is
anticipated to expand by over 4% annually on a global scale.
 Figure : Productions of Phosphoric acid worldwide(Source: Statista, 2022)

In 2015, the market volume of Phosphoric acid worldwide was 82.38 million metric
tons. It is forecast that the global market volume of Phosphoric acid will increase to 86.63
million metric tons in 2020.
 Export and Import

Table : Top exporter Phosphoric acid based on percentage in 2020(Source: OEC,

2022)
Top Exporter Phosphoric acid 2020 Percentage (%)
Morocco 31.7
China 10.5
Jordan 9.34
Israel 7.71
Senegal 6.59

(Source: OEC, 2022)

Figure above shows that the top country that export Phosphoric acid in 2020. Morocco comes as
the higher exporter of Phosphoric acid in 2020 which is about 31.7%, followed by China, Jordan,
Israel and Senegal which is about 10.5%, 9.34%, 7.71%, 6.59% respectively. Morocco become top
exporters of Phosphoric acid due to its large capacity installation.
 Table : Top importer Phosphoric acid based on percentage in 2020(Source: OEC,
2022)
Top Importer Phosphoric acid 2020 Percentage (%)
India 34.9
Netherlands 7.31
Pakistan 5.44
United States 5.11
Germany 4.15

(Source: OEC, 2022)

The figure above showed the top country that import the Phosphoric acid in 2020. The India becoming the larger that
import the Phosphoric acid which is 34.9%. This is because India will continue to be the fastest growing of the major
Phosphoric acid markets through the forecast period for several reasons. Next, the dramatic expansions of the
manufacturing capabilities and rising consumer consumptions in India have transformed its society and economy.