Chemical Profile - Tetrapotassium Pyrophoshate

29 April 2002 00:00  [Source: ICB Americas]

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Tetrapotassium Pyrophoshate

April 29, 2002

US PRODUCER	CAPACITY*
Astaris, Carteret, N.J.	15
Prayon, Augusta, Ga.	20
Rhodia, Cincinnati, Ohio	22
Tota	57

*Thousands of short tons per year of tetrapotassium pyrophosphate (TKPP). Relative to the calcium and sodium salts, potassium phosphates constitute a smaller class of inorganic phosphate chemicals. Of these, TKPP is the predominant product. Commercial production of TKPP and other potassium phosphates is based on industrial phosphoric acid and potassium hydroxide as raw materials. Capacities of production facilities are flexible since producers can manufacture varying amounts of other potassium phosphates using the same equipment. Rhodia acquired Albright & Wilson PLC in 2000, making it the world's leader in specialty phosphates. To gain the Federal Trade Commission's consent for the deal, Rhodia divested Albright & Wilson's merchant phosphoric acid business in the US to Potash Corp. of Saskatchewan, Albright & Wilson's former partner in the business. At about the same time, FMC Corp. and Solutia Inc. announced the formation of Astaris LLC, a 50-50 phosphorus joint venture. The joint venture included FMC's Carteret, N.J., plant and Solutia's Augusta, Ga., TKPP facility. Later the same year, Astaris sold the Augusta plant to Prayon Inc. Prayon is a subsidiary of Prayon-Rupel, Engis, Belgium. Profile last published 9/21/98; this revision 4/29/02.

DEMAND
2000: 25,600 short tons; 2001: 25,900 short tons; 2005: 27,300 short tons. Demand equals production plus imports, which were 1,700 short tons in 2000 and 1,000 short tons in 2001, less exports, which were 2,300 short tons in 2000 and 2,600 short tons in 2001.

GROWTH
Historical (1996-2001): 1.4 percent per year; Future: 1.3 percent per year through 2005.

PRICE
Historical (1996-2001): High, $82.50 per cwt., list, bgs., c.l., t.l., works, E., frt. equald.; low, $78.50, same basis. Current: $79.00, same basis.

USES
Industrial and institutional cleaners, 47 percent; water treatment, 40 percent; dentifrice, 5 percent; consumer cleaners, 4 percent; miscellaneous, including drilling fluids, elastomers, paints and pigments, papermaking and plating baths, 4 percent.

STRENGTH
The most dominant potassium phosphate used for water treatment is TKPP. Closed circuit water treatment formulations accounted for 40 percent of TKPP consumption last year. This application has grown at better than 6 percent per year since 1990 and continues to be TKPP's strongest segment, presently growing at 3.4 percent per year. However, TKPP's growth is mitigated by polymeric water treatments in an effort to limit phosphate discharge into the environment. Potassium phosphates have higher water solubility than their corresponding sodium salts. Thus, they are useful where solids precipitation is to be avoided. But, phosphates are more expensive than the sodium salts, so sodium phosphates compete against potassium phosphates on price.

WEAKNESS
The use of TKPP as a detergent builder in industrial and institutional cleaners and consumer cleaners accounts for 51 percent of the consumption. These applications have been in a slow but steady decline since the mid-1980s, and though stable today, they are considered to be no growth areas.

OUTLOOK
The TKPP business has been completely transformed by plant rationalizations in the 1990s followed by ownership changes in 2000. The restructuring has realigned the US TKPP business with players that are more competitive, operating globally. The result is a strengthened industrial phosphate sector that will better weather the slow growth ahead. Projected demand is 1.3 percent per year through 2005.

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