Phosphorus Trichloride

PRODUCER

CAPACITY*

Akzo Nobel, Gallipolis Ferry, W.Va.

22,000

Great Lakes Chemical, Nitro, W.Va.

30,000

Monsanto, Luling, La.

220,000

Rhodia, Charleston, S.C.

55,000

Syngenta, Cold Creek, Ala.

20,000

Total

347,000

*Short tons per year phosphorus trichloride, PCl3 basis. Commercial production is by direct reaction of elemental phosphorus with chlorine. The crude phosphorus trichloride produced is purified by distillation.

In August, 1999, Great Lakes Chemical Corporation acquired the process additives business of FMC Corporation, which comprised phosphate esters, flame retardant fluids, lubricant additives and specialty water treatment chemicals. The deal included the plant in Nitro, W. Va., which produces phosphorus trichloride. Astaris (which was formed as a joint venture between FMC and Solutia) continues to market phosphorus trichloride made at the Nitro plant, under a long-term tolling agreement.

In 2000, Rhodia acquired Albright & Wilson, along with the 55,000 ton per year phosphorus trichloride operation in Charleston, S.C. That same year, Rhodia closed its phosphorus trichloride production with 17,000 short tons of capacity, at Morrisville, Pa.

Novartis and AstraZeneca spun off and merged their respective agribusinesses to form Syngenta, in late 2000. This included Zeneca’s phosphorus trichloride plant at Cold Creek, Ala.

Profile last published 2/3/97; this revision, 9/23/02.

DEMAND
2000: 293,200 short tons; 2001: 305,500 short tons; 2005: 357,000 short tons, projected. Demand equals production plus imports (2000: 0 short tons; 2001: 400 short tons) less exports (2000: 1,200 short tons; 2001: 1,100 short tons).

GROWTH
Historical (1996 - 2001): 8.4 percent per year; future: 4.0 percent per year through 2005.

PRICE
Historical (1996 - 2001): High, $0.49 per pound, list, tanks, f.o.b. frt. equald.; low, $0.49, same basis. Current: $0.49, same basis.

USES
Pesticide intermediate, 70 percent; phosphorus oxychloride, 12 percent; surfactants and sequestrants, including phosphorous acid, used primarily for water treatment chemicals, 11 percent; plastics additives (including flame retardants, plasticizers and phosphite antioxidants and stabilizers), 5 percent; miscellaneous, including lube oil and paint additives, 2 percent.

STRENGTH
The manufacture of phosphorus trichloride for pesticide synthesis consumed 70 percent of the US demand last year. Overall, this market segment grew at an average annual rate of about 11 percent since 1996. However, about 90 percent of this demand was from Monsanto, for glyphosate (for its herbicide Roundup® and its related plant growth regulator, Polado®). Future growth of this segment during the forecast period is expected to be slightly better than 5 percent annually.

Organophosphonates, derived from phosphorus trichloride, are used in a variety of water treatments as cleaners, chelating agents, corrosion inhibitors and antiscaling agents. This segment has a wide base of industrial applications and is growing at 3 percent annually.

WEAKNESS
Phosphorous oxychloride, phosphorous trichloriede’s second largest sector at 12 percent, is expected to show only modest growth – less than 2 percent annually. This growth will be chiefly from organic phosphate esters used as flame-retardants and plasticizers in a wide variety of plastics and elastomers. Demand for functional fluids, phosphorus oxychloride’s second largest application segment, is expected to be flat over the forecast period.

OUTLOOK
Future US demand will largely be driven by glyphosate applications, the glyphosate being supplied by Monsanto who is self sufficient in phosphorous and phosphorus trichloride. Industry capacity appears to be on the threshold of tightness, and it is anticipated that Monsanto will increase their capacity in Luling, La., accordingly. The non-glyphosate sector of the market is relatively mature and will probably grow at something less than GDP. Overall, aggregate demand is forecast at 4 percent annually, through 2005.

HISTORICAL DATA

Year

Demand

Short Tons

List Price

$ per pound, list, tanks, f.o.b. frt. equald.

1996

204,100

0.49

1997

258,900

0.49

1998

270,300

0.49

1999

281,500

0.49

2000

293,200

0.49

2001

305,500

0.49

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