Nitric Acid  

*Thousands of metric tons per year, 100 percent HNO₃ basis. Nitric acid is usually produced by the stepwise catalytic (platinum) oxidation of ammonia (NH₃) through nitric oxide (NO) to nitrogen dioxide (NO₂), which is then absorbed in and reacted with water. Nitric acid is sold commercially in various concentrations, expressed as degrees Baumé (Be), an arbitrary specific gravity scale. Approximately 90 percent of nitric acid production is consumed captively on site, primarily in the production of ammonium nitrate fertilizers and some industrial explosives. Thus, the merchant market for nitric acid accounts for only about 10 percent of the total.

Vicksburg Chemical is a subsidiary of Cedar Chemical Corporation.

El Dorado Nitrogen is a subsidiary of LSB Industries

Nitrochem acquired the Newell, Pa., nitric acid facility of Welland Chemicals in 2000. Nitrochem is owned by Daftna Holding Ltd., Brinc Inc., Baldev Ltd. and MG Partners.

In September 2000, PCS Nitrogen Fertilizer permanently closed its Clinton, Iowa, and La Platte, Neb., plants, eliminating 115 and 150 thousand tonnes of capacity, respectively.

In November 2000, LSB Industries, through wholly owned subsidiaries, completed the acquisition of LaRoche Industries’ nitric acid assets located in Crystal City, Mo. and Cherokee, Ala. LaRoche is a subsidary of Orica USA.

This is the first publication of this profile, 2/11/02.

DEMAND
1999: 9,688 thousand metric tons; 2000: 9,853 thousand metric tons; 2004: 10,052 thousand metric tons, projected. Imports and exports are negligible, amounting to about 25 thousand tonnes imported and 15 thousand tonnes exported, annually.

GROWTH
Historical (1995 - 2000): 1.6 percent per year; future: 0.5 percent per year through 2004.

PRICE
Historical (1995 - 2000): High, $225 per short ton, 42º Bé (67.2 percent), tanks, c.l., tanks, works, 100 percent basis; low, $190, same basis. Current: $210, same basis.

USES
Ammonium nitrate, 75 percent; adipic acid, 9 percent; nitrobenzene, 4 percent; toluene diisocyanate (TDI), 4 percent; metal treatment, 3 percent; metal nitrates, 1 percent; miscellaneous, 4 percent.

STRENGTH
Nitrobenzene is produced by the direct nitration of benzene with nitric/sulfuric acid mixtures and most of this goes into the production of aniline as an intermediate consumed in 4,4-methylenebis (phenylisocyanate) (MDI) and "polymeric" MDI production. MDI is expected to continue growing at better than the GDP rate and will consequently add to nitric acid’s growth. Toluene diisocyanate (TDI) is produced from dinitrotoluene, which in turn is produced by the nitration of toluene with nitric/sulfuric acid mixtures. The primary use of TDI is in the manufacture of flexible polyurethane foams, which account for about 85% of total domestic TDI consumption. Likewise, TDI growth is expected to do slightly better than GDP growth, and this too will be reflected in a modest growth for nitric acid.

WEAKNESS
Demand for nitric acid is largely dependent upon demand for solid ammonium nitrate fertilizer and nitrogen fertilizer solutions that incorporate ammonium nitrate. Ammonium nitrate accounts for three quarters of nitric acid’s demand, and is projected to grow at less than one-half of a percent in coming years. Consumption of nitric acid in adipic acid manufacture is expected to increase only marginally during the forecast period, again at less than one-half of a percent annually.

OUTLOOK
Nitric acid is a mature product and heavily dependent on the demand for fertilizers. Near term, ammonium nitrate is expected to show only minimal growth and nitric acid demand will reflect this situation. Longer term, organic chemical applications will become increasingly more important in the demand picture for nitric acid. Nitric acid growth through 2004 is projected to be 0.5 percent annually.