Sluggish growth expected in bulk inorganic acids market.

LONDON--(BUSINESS WIRE)--Jan. 9, 1996--The bulk inorganic acids market -- part of the base inorganic chemicals market -- comprises four essential product types, namely hydrochloric, nitric, phosphoric and sulfuric acids.

These acids find their application mainly as intermediates in the chemicals industry and also as end-use products in metal treatment, ore treatment and other industries.

Consequently, the bulk inorganic acid market's performance and its dynamics are closely linked with other industry's such as fertilizers, chlor-alkali and the organo-synthetic sector.

Following the recessionary climate in the years 1991 to 1993, which affected all the sectors of the chemical industry, 1994 brought a revival of the market for bulk inorganic acids.

A new report by international market research consultancy Frost & Sullivan estimates the European market for bulk inorganic acids to have been worth US$10.47 billion in 1994, forecast to reach US$17.29 billion by the end of the study period in the year 2001.

The report commented: "Acquisitions of small and medium companies by large trans-European companies and also mergers and joint ventures have been made in order to increase their market share and competitivity.

"In joint ventures, companies have benefited from sharing distribution channels, R&D, product registration and other costs. The pan-European companies expanded in Europe and also worldwide in order to increase their market share."

Pressure of environmental concerns affected the acids industry. The manufacturing companies made efforts in reducing the discharges of waste waters and the emissions of acid gases, e.g. SOx and NOx. Most companies did invest in environmental protection and the compliance with the proposed ISO14000 series of standards which regulate emissions and discharges in the environment and limits for various substances.

Frost & Sullivan continued: "Technological changes were made in the period between 1991 and 1994, especially in the chlor-alkali industry which manufactures hydrochloric acid, by replacing the mercury cell with the new membrane cell by most of the chemical companies."

The major sulfuric acid producers installed tail-gas treatment for the reduction of the sulfur dioxide and acidic emissions.

In terms of product sectors, the bulk inorganic acids market is dominated by the nitric acid sector, estimated to have been worth US$4.56 billion in 1994 and predicted to US$7.59 billion by the year 2001.

This is followed by phosphoric and sulfuric acids, valued at US$3.39 billion and US$1.47 billion, respectively, in the same year. The sulfuric acids market is set to decline in real terms over the forecast period, particularly in Germany, France and the United Kingdom.

The Benelux countries are the leading national market for bulk inorganic acids, accounting for 22.5 percent of the overall European market, followed by France and the Iberian countries, valued at 15.4 percent and 12.2 percent, respectively.

Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports.

Code: 3216-48 Publication Date: January 1996

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