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The world wet phosphoric acid industry has recovered from a trough in the
early 1990s that was induced by economic problems in the Eastern bloc. A significant
decline also occurred in Western Europe as a result of high rock transportation
costs and environmental concerns. The recovery of the world industry overall
is a result of the substantial growth that has occurred in the developing world.
Markets have been relatively stagnant in the developed countries and regions.
The supply/demand balance has also recovered from a serious dip at the end
of the 1990s that resulted from the financial difficulties experienced by a
number of rapidly growing economies in Southeast Asia. The period 1993–2005
was characterized by significant fluctuations in the average world operating
rate from a low of 71% in 1993, to the low 80s in the late 1990s, to the mid-70s
in the early 2000s, and to the low 80s currently. The outlook to 2010 is for
the supply/demand balance to remain relatively strong.
The primary market for wet phosphoric acid is the production of phosphate
fertilizer products—ammonium phosphate and triple superphosphate. Fertilizer
production accounts for an estimated 80–85% of the global market for
wet phosphoric acid. The remainder is consumed in a variety of industrial applications.
During the forecast period, large gains are projected for Socialist Asia,
Southwest Asia, and Africa. Declines are projected for the United States, Western
Europe, the former USSR, and several other regions. Overall, world wet phosphoric
acid consumption is forecast to grow at an average annual rate of 2.0% during
the forecast period to 2010. The fob value of the world wet phosphoric acid
market in 2005 is roughly estimated at $12 billion.
The export market for wet phosphoric acid is dominated by Africa, which accounted
for 74% of world exports in 2005. No other region accounted for as much as
10%. Africa’s export volume, which increased by 56% between 1993 and
2005, is forecast to decline by about 10% during the forecast period as domestic
consumption increases more rapidly than production. Africa is the only region
that has recorded a substantial increase in exports since 1993. Western Europe
is the only region that recorded a significant loss. The largest increase during
the forecast period is projected for Socialist Asia.
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