Phosphorus and Derivatives Market is segmented By Type, By Allotropic Form, By Application and region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa): share, size, outlook, and opportunity analysis, 2024–2031
Market Overview
Phosphorus and Derivatives Market is expected to grow at a CAGR of 3.9% during the forecast 2024-2031
Phosphorus & derivatives are essential nutrients used as additives to enhance the quality & strength of their end application, such as fertilizers, detergents, and the animal food industry. The phosphorus derivatives are mainly used as a fertilizer in the production of crops. Today, most phosphorus comes from phosphate rock mined worldwide and converted to phosphoric acid. It has applications in manufacturing fertilizers, rust removers, animal feeds, corrosion preventers, and dishwasher tablets.
Most phosphorus makes high-purity phosphoric acid necessary for some food processing and etching semiconductors. Elemental phosphorus is also used in manufacturing other chemical intermediates (products used in making other chemical products). The phosphorous specialties are liquid-liquid metal extractants, antifoam agents, solvent substitutes, viscosity depressants, and catalysts for chemical synthesis.
Phosphates are used for unique glasses, sodium lamps, steel production, military applications (incendiary bombs, smoke screenings, etc.), and other applications such as pyrotechnics, pesticides, toothpaste, and detergents.
Market Summary
| Metrics | Details |
| Market CAGR | 3.9% |
| Segments Covered | By Type, By Allotropic Form, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Source: DataM Intelligence Analysis (2023)
Market Dynamics
The growing steel production drives the global phosphorus & derivatives market growth.
Growing need for phosphorus in steel production
In steels, phosphorus exists solely as a solid solution in ferrite. It is the potent ferrite strengthener after carbon. Adding only 0.17 % phosphorus enhances low carbon sheet steel's yield and tensile strength by about 62 MPa while improving the bake hardening response and deep drawability. Because of these properties, high-strength steels are widely used for cold-forming applications. Phosphorus is added to the steel to improve strength, machinability, and atmospheric corrosion resistance. Phosphorus can be added to the steel in ferrophosphorus, comprising 23 % to 26 % P. Fe-Phosphorus fines are usually briquette after using a binder. Fe-Phosphorus is added to the teeming steel ladle only after deoxidized steel.
Phosphorus is also added along with sulfur to enhance the machinability of steel. Higher Phosphorus is defined in low carbon free-machining steels to improve machinability.
The rising global crude steel production is expected to boost the phosphorus & derivative market demand. The global production of steel reached 1,864.0 million tons in the year 2020. Asia produced 1,374.9 Mt of steel in 2020, an expansion of 1.5% compared to 2019. China's steel production in 2020 reached 1,053.0 Mt, up by 5.2% in 2019. The EU will produce 138.8 Mt of steel in 2020.
Rising prices of chemicals
Since the beginning of 2021, the prices of related products in the phosphorus chemical industry chain have continued to grow. According to the industry analysis, China's phosphate fertilizer raw materials such as diammonium phosphate and monoammonium phosphate were quoted at US$ 506.3/ton (3264 yuan/ton) and US$518.8/ton (3345 yuan/ton) in September, up about 64% and 39% from the beginning of the year. Moreover, the quotation of yellow phosphorus was US$ 9,319.8/ton (60082 yuan/ton), which stood at the level of US$9307/ton (60000 yuan) at one stroke, an increment of about 280% over the beginning of the year.
At New Orleans, DAPhosphorus prices climbed to $355-$360/ton FOB and on MAPhosphorus to $360-$365, moving $30-$40 higher than in July. Markets along the Mississippi River raised prices to $385-$400/ton FOB DAPhosphorus and $385-$415 MAP, $50 more expensive than the previous month.
Covid-19 Impact
Due to the pandemic, the phosphorus & derivatives market demand was slightly hindered in the initial months but has been stable in 2020. Phosphorus & derivatives have been extensively used in agriculture, pharmaceutical, animal food, and other various products. The agriculture industry has been stable in most countries globally, which has posed no severe impact on fertilizers production.
For instance, agricultural exports during COVID-19 appear to have been holding up relatively well compared to overall U.S. exports. In 2020, U.S. agriculture exports were down 3.5% from last year compared to a decrease of 18% for non-ag exports. The pharmaceutical sector has been booming during the pandemic, which has resulted in higher demand for phosphorus. Moreover, other industries have been stable, such as animal food, detergents, and other sectors.
Market Segment Analysis
By application, the phosphorus & derivatives market is segmented into fertilizers, detergents, animal food, pharmaceuticals, water treatment chemicals, metal finishing, flame retardant material, and others.
The rising consumption of fertilizers in the countries is expected to boost the phosphorus & derivatives market.
Fertilizers will hold a significant phosphorus & derivatives market share in the forecast period. Phosphorus is a necessary nutrient required for crop growth. Ground rock phosphate has been used as a source of phosphorous for soils. However, due to the low concentration level of phosphorous in the native material, small crop responses, and high transportation costs, the acceptance of rock phosphate has reduced considerably in agriculture. On the other hand, the acceptance of phosphorous-based fertilizers has grown significantly.
Phosphoric acid is not used directly as a fertilizer because it is corrosive but is utilized to manufacture other fertilizers. The reaction of phosphoric acid with rock phosphate yields triple superphosphate (TSP).The main application of phosphoric acid is in the synthesis of phosphate chemicals, which are then used to produce phosphatic fertilizers such as SSPhosphorus (single superphosphate), DAPhosphorus (diammonium phosphate), TSPhosphorus (triple superphosphate), and MAPhosphorus (monoammonium phosphate).
Moreover, the expanding utilization of fertilizers in numerous countries is expected to boost the phosphorus & derivatives market demand. For instance, in 2019, Fertilizer Consumption in Singapore grew 5.7% compared to the previous year.
Source: DataM Intelligence Analysis (2023)
Market Geographical Analysis
The growing agricultural production coupled with favorable government initiatives will boost the market in the Asia-Pacific.
Asia-Pacific region holds the vital market share for the phosphorus & derivatives market globally and is expected to continue its dominance in the forecast period. China is home to one of the richest sources of phosphate rock. At the same time, the country is also a significant producer of phosphoric acid, phosphate fertilizers, and fine phosphorus chemicals.
The chemical industry is the spine of industrial and agricultural development in numerous countries. The combination of policy intervention, company-level initiatives, industry-academic partnerships, wise investments, and greater international access have boosted the phosphorus & derivatives market in the region. For instance, in June 2021, the Cabinet Committee on Economic Affairs in India approved the proposal to hike subsidy rates for phosphorus-based fertilizers by 140% to grant relief to farmers owing to the origin of the Kharif sowing season. The additional subsidy, which totaled around US$ 1.98 billion, was announced as a one-time measure of COVID-19 relief.
The growing fertilizers production is also one of the significant factors for the market growth. For instance, according to Indian government data, fertilizers production stood at 37 million metric tons, a 3% increase in the first ten months of FY2021 compared with 36 million in FY2020. Moreover, the country's import dependence (i.e., imports as a proportion of production plus imports) grew from 36% in FY2020 to 38% in FY2021. Due to the significant market demand, the companies are expanding their production capabilities to support end-user needs. In 2017, Crop protection firm United Phosphorus Ltd expanded its tie-up with Ishihara Sangyo Kaisha of Japan to launch two new insecticides from its global products portfolio in India.
Source: DataM Intelligence Analysis (2023)
Companies and Competitive Landscape
The phosphorus & derivatives market is moderately competitive, operated by global companies on a large scale and local companies on small-scale operations. However, local companies have been expanding their production with rising pharmaceutical and food-grade applications. In addition, some of the key players contributing to the market's growth are Arkema Group, Lanxess, PCC Rokita SA, Acron Group, SMC Global, Nippon Chemical Industrial CO., LTD., Solvay, Eurochem Group, Italmatch Chemicals, FRX Polymers Inc and others. The major companies are adopting various new strategies to dominate the market, such as expansions, partnerships, collaborations, and acquisitions contributing to the global growth of the phosphorus & derivatives market.
Lanxess
Overview: Lanxess is a specialty chemicals company located in Cologne, Germany. The company has around 14,800 employees located in 33 countries globally. The company's primary expertise lies in developing and marketing chemical intermediates, specialty chemicals, additives, and plastics, with annual sales of US$ 7.06 billion (EUR 6.1 billion) in 2020.
Lanxess manages its operating business through four segments: Advanced Intermediates, Consumer Protection, Specialty Additives, and Engineering Materials. It includes 11 Business Units, through which the company works with a broad range of applications and markets.
Product Portfolio: The company manufactures phosphorus specialties, including products used as antifoam agents, liquid-liquid metal extractants, solvent substitutes, viscosity depressants, and catalysts for chemical synthesis. The company produces intermediates based on phosphorus like phosphates, phosphorus chlorides, phosphorus oxides, and polyphosphoric acids. The product has applications in basic building blocks and phosphorylating agents in the production of phosphorus compounds.
Critical Development: In 2017, Lanxess completed the purchase of the phosphorus chemicals business from Solvay, which includes its U.S. production site in South Carolina. The Charleston site consists of six production plants, where roughly 90 employees manufacture phosphorus chloride & derivative products such as flame-retardant additives & intermediate products for agrochemicals. The business signifies annual sales of approximately US$ 75.20 million (EUR 65 million).
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The global phosphorus & derivatives market report would provide approximately 61 market data tables, 62 figures, and 230 pages
