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World consumption of oxalic acid was nearly 232 thousand metric tons in 2006;
global capacity utilization was 61%. Between 2003 and 2006, world capacity
for oxalic acid grew at an average annual rate of 2.3%, trailing world consumption,
which grew at an average annual rate of 2.9%. Although world consumption grew
at a higher rate than world capacity, persistent excess oxalic acid capacity
continues to depress operating rates. Low margins and capacity additions are
expected to force some oxalic acid producers, mainly outside China, to curtail
production or shut down plants; further consolidations, including the exit
of smaller and inefficient producers in China, are expected as new capacity
is commissioned.
China is the largest world producer, consumer and exporter of oxalic acid.
Annual Chinese capacity for oxalic acid increased from approximately 155 thousand
metric tons in 1998 to 275 thousand metric tons in 2006, growing at an average
annual rate of 7.4%; further capacity expansions are forecast between 2006
and 2009. Increased Asian demand was partially countered by decreases in demand
in North America and Europe. Increased demand of oxalic acid for rare earth
oxides, pharmaceuticals and textile/metal treatment will continue to strengthen
Asia’s dominance (primarily China) of the oxalic acid market.
The following pie chart shows world consumption of oxalic acid:
Asia accounts for over 81% of world
consumption of oxalic acid. China is
the largest world consumer of oxalic
acid because of a large rare earth
oxides market; it accounts for approximately
75% of world production of rare earth
mineral concentrates. Growth in demand
for oxalic acid relies heavily on production
of rare earth oxides and pharmaceuticals.
Rare earths are used mainly in catalyst
(automotive emission and FCC catalysts),
metallurgical (steel and alloys), glass
and ceramics applications. The United
States is the largest consumer of rare
earths, followed by China, Japan and
Europe.
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