Aluminum Hydroxide Supply Chain - Executive Summary

Aluminum Hydroxide

Precursor Chemical

Al (0H)3
(solid)

Inputs to Manufacturing Process:

Bauxite	Sodium Hydroxide

^ Derivative Water Treatment Chemicals:

*

Aluminum Sulfate
Polyaluminum Chloride

^ % of Total Domestic Consumption
Attributed to Water Sector:

Approximately 1%

/as Understanding Chemical Supply Chains

Product Family:

Aluminum

CAS No.: 21645-51-2

Shelf Life:

¦ 60+ Months

— RISK OF SUPPLY DISRUPTION (Assessed in 2022)

RISK RATING: Moderate-Low



RISK DRIVERS

Though production of
aluminum hydroxide
takes place at numerous
domestic locations, the
U.S. is completely reliant
on import of a key raw
material, bauxite.

RISK PARAMETERS

Criticality: High. Essential precursor for alumi-
num-based coagulants.

Likelihood: Low. Historic price increases have
impacted price of derivative water treatment
chemicals, but there have been no supply dis-
ruptions between 2000 and 2022.

Vulnerability: Moderate-High. Distributed do-
mestic manufacturing, but entirely reliant on
imports for supply of key raw material, bauxite.

MANUFACTURING PROCESS

Water T reatment Applications

Bauxite

Sodium Hydroxide

Aluminum Hydroxide

Input	End Use

Water treatment chemical production

Other Applications

•	Fire-retardant coating

•	Pharmaceuticals

•	Cosmetics

•	Chemical manufacturing

	 DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE

Domestic Manufacturing Locations (2019):

Numerous, distributed throughout the

U.S.

(^) International Trade (2019)

Primary Trading Partner (Imports): Brazil
Primary Trading Partner (Exports): Mexico

Domestic Consumption (2019):
995 M kg

Domestic Production (677 M kg)
I Imports for Consumption (402 M kg)
Export of Domestic Production (84 M kg)

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Aluminum Hydroxide Supply Chain - Full Profile

Product Description

Aluminum hydroxide (AI(OH)3), an amphoteric substance, is the hydrated form of alumina. It is not used directly
in water treatment but serves as a precursor chemical to manufacture aluminum-based coagulants. Aluminum
hydroxide is widely used in fire-retardant coatings and pharmaceuticals including vaccines and antacids.

Use in Water Treatment

Aluminum hydroxide is not used directly in water treatment.

Use as a Precursor to Other Water Treatment Chemicals

Aluminum hydroxide is used as a precursor in the commercial manufacture of aluminum-based water treatment
chemicals such as aluminum sulfate and polyaluminum chloride.

Other Applications

Common application of aluminum hydroxide include fire-retardant coatings, as an adjuvant in vaccines and
other pharmaceutical applications including antacids, food additive, cosmetics, and derivative chemical
manufacturing (ATSDR, 2008; CIR, 2013; NCBI, 2022).

Primary Industrial Consumers

Aluminum hydroxide has a wide range of uses. Significant uses include use in fire-retardant coatings,
pharmaceuticals (including vaccines and over-the-counter products), and cosmetics. Water treatment chemical
production, including industrial water treatment, is estimated as a small percentage of overall aluminum
hydroxide consumption (ATSDR, 2008; CIR, 2013; EPA, 2020).

Manufacturing, Transport, & Storage

Manufacturing Process

Aluminum hydroxide is primarily produced through the Bayer process from a reaction of bauxite with a solution
of sodium hydroxide. The most common aluminum hydroxide manufacturing process proceeds in steps, the
overall equations for this process are outlined in Figure 1. Crushed bauxite is dissolved in a sodium hydroxide
solution with heat, yielding a solution of sodium aluminate. Aluminum hydroxide is then precipitated from the
resultant sodium aluminate solution by cooling and seeding the solution with previously produced aluminum
hydroxide. Aluminum hydroxide crystals are produced, which are removed after settling to the bottom of the
tank (ATSDR, 2008; The Aluminum Association, n.d.). Alumina is produced by dehydrating aluminum hydroxide.

Step 1:



Bauxite + Sodium Hydroxide

—> Sodium Aluminate + Water

Al203 + 2NaOH

-> 2NaAI02 + H20

Step2:



Sodium Aluminate + Water

—> Aluminum Hydroxide + Sodium Hydroxide

NaAI02 + 2H20

-> AI(OH)3 + NaOH



t



Seeding with Aluminum Hydroxide

Figure 1. Chemical Equation for the Reaction to Manufacture Aluminum Hydroxide

EPA 817-F-22-010 | December 2022

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Aluminum Hydroxide Supply Chain - Full Profile

Product Transport

Aluminum hydroxide, primarily supplied as a solid, is widely transported in container and bulk by truck, rail,
barge, and tanker.

Storage and Shelf Life

When stored properly, aluminum hydroxide can have a shelf life in excess of 60 months, depending on storage
conditions (Flinn Scientific, 2014).

Domestic Production & Consumption

Domestic Production

Production data was collected from the 2020 Toxic Substances Control Act (TSCA) Chemical Data Reporting
(CDR) for the year 2019, while trade data was collected from the U.S. International Trade Commission (USITC)
Dataweb, as shown in Table 1. Both production and trade data are specific to aluminum hydroxide.

Table 1. Aluminum Hydroxide Production and Trade Data Sources

Production and Trade Data

Category

Data Source and Date

Identifier

Description

Domestic Production

2020 EPA Chemical Data Reporting

CAS No.: 21645-51-2

Aluminum Hydroxide

Imports and Exports

U.S. International Trade Commission

HS Code: 2818.30

Aluminum Hydroxide

Total U.S. domestic manufacturing of aluminum hydroxide reported under the CDR was approximately 677
million kilograms (M kg) in 2019 (EPA, 2020). Production at the Gramercy, Louisiana Noranda Alumina facility
accounted for the majority of reported aluminum hydroxide production in 2019. Chemtrade Solutions, which
manufactures derivative aluminum-based water treatment chemicals, accounted for approximately 1% of total
reported domestic production, though a considerable number of manufacturers claimed confidential business
information for production volumes, including known water treatment chemical manufacturers.

Domestic Consumption

U.S. consumption of aluminum hydroxide in 2019 is estimated at 995 M kg. This includes production of 677 M
kg, import of 402 M kg, minus export of 84 M kg (EPA, 2020; USITC, 2021), as shown in Figure 2.

Domestic Consumption (2019):

995 M kg

¦	Domestic Production (677 M kg)

¦	Imports for Consumption (402 M kg)

¦	Export of Domestic Production (84 M kg)

Figure 2. Domestic Production and Consumption of Aluminum Hydroxide in 2019

Trade &Tariffs

Worldwide Trade

Worldwide import and export data for aluminum hydroxide are reported through the World Bank's World

2

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Aluminum Hydroxide Supply Chain - Full Profile

Integrated Trade Solutions (WITS), as a category specific to aluminum hydroxide. In 2021, the U.S. ranked tenth
worldwide in total exports and third in total imports of aluminum hydroxide. In 2021, Brazil ranked first
worldwide in total exports and Japan ranked first in total imports (WITS, 2022), as shown in Table 2.

Table 2. WITS Worldwide Export and Import of Aluminum Hydroxides in 2021

2021 Worldwide Trade
Aluminum Hydroxides (HS Code 2818.30)

Top 5 Worldwide Exporters

Top 5 Worldwide Importers

Brazil

718 M kg

Japan

678 M kg

Australia

507 M kg

South Korea

375 M kg

Germany

458 M kg

United States

298 M kg

Spain

412 M kg

Netherlands

205 M kg

Greece

386 M kg

Germany

200 M kg

Domestic Imports and Exports

Domestic imports and export data are reported by USITC in a category specific to aluminum hydroxide. Figure 3
summarizes imports for consumption1 and domestic exports2 of aluminum hydroxide between 2015 and 2020.
During this period, the overall quantity of exports remained relatively steady, while the quantity of imports
varied, with the largest quantity imported in 2019. Over this five-year period, Mexico was the primary recipient
of domestic exports while Brazil was the primary source of imports (USITC, 2021).

Domestic Trade of Aluminum Hydroxide
500	HS Code 2818.30

450

400

350

300

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¦	Imports from Brazil	¦ Exports to Mexico

¦	Imports from Canada	¦ Exports to Canada

¦	Imports from Other Countries	Exports to Other Countries

Figure 3. USITC Domestic Import and Export of Aluminum Hydroxide between 2015 and 2020

1	Imports for consumption are a subset of general imports, representing the total amount cleared through customs and entering
consumption channels, not anticipated to be reshipped to foreign points, but may include some reexports.

2	Domestic exports are a subset of total exports, representing export of domestic merchandise which are produced or manufactured in
the U.S. and commodities of foreign origin which have been changed in the U.S.

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Aluminum Hydroxide Supply Chain - Full Profile

Tariffs

Imports of aluminum hydroxides are primarily supplied from Brazil and Canada. There is no general duty for
import of aluminum hydroxide, however there is an additional 25% duty on imports from China (USITC, 2022), as
summarized in Table 3.

Table 3. 2022 Domestic Tariff Schedule for Aluminum Hydroxide

HS Code

General Duty

Additional Duty - China
(Section 301 Tariff List)

Special Duty

2818.30

None

25%

None

Market History & Risk Evaluation

History of Shortages

While there are no notable shortages of aluminum hydroxide between 2000 and 2022, there have been several
instances of price increases for aluminum hydroxide. This led some manufacturers of derivative products such as
aluminum sulfate (alum), including domestic manufacturers and suppliers of alum, to raise alum prices as well.
The demand for aluminum hydroxide in other uses, primarily fire-retardant coatings, is expected to continue to
increase (USGS, 2022).

Risk Evaluation

The complete risk evaluation methodology is described in Understanding Water Treatment Chemical Supply
Chains and the Risk of Disruptions (EPA, 2022). The risk rating is calculated as the product of the following three
risk parameters:

Risk = Criticality x Likelihood x Vulnerability
Criticality	Measure of the importance of a chemical to the water sector

Likelihood Measure of the probability that the chemical will experience a supply disruption in the
future, which is estimated based on past occurrence of supply disruptions

Vulnerability Measure of the market dynamics that make a chemical market more or less resilient to
supply disruptions

The individual parameter rating is based on evaluation of one or more attributes of the chemical or its supply
chain. The ratings and drivers for these three risk parameters are shown below in Table 4.

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Aluminum Hydroxide Supply Chain - Full Profile

Table 4. Supply Chain Risk Evaluation for Aluminum Hydroxide

Risk Parameter Ratings and Drivers



i i

1

ICriticality High

1 Likelihood Low 1

Vulnerability Moderate-High 1

Aluminum hydroxide is essential to
the water sector for production of
aluminum-based coagulants.

The water sector has not experienced
aluminum hydroxide supply
disruptions between 2000 and 2022,
but there have been notable price
increases during this period.

Strong domestic manufacturing
capabilities and a distributed
manufacturing base provide some
resilience to supply disruptions.
Flowever, a key raw material, bauxite,
must be imported.

Risk Rating: Moderate-Low

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References

Agency for Toxic Substances and Disease Registry (ATSDR), 2008. Toxicological profile for Aluminum,
retrieved from https://www.atsdr.cdc.gov/toxprofiles/tp22.pdf

Cosmetic Ingredient Review (CIR), 2013. Safety Assessment of Alumina and Aluminum Hydroxide as Used in
Cosmetics, Cosmetic Ingredient Review, Washington, D.C., retrieved from https://www.cir-
safetv.org/sites/default/files/Alumin 062013.pdf

EPA, 2020. 2020 TSCA Chemical Data Reporting, retrieved from https://www.epa.gov/chemical-data-
reporting/access-cdr-data#2020

EPA, 2022. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved
from https://www.epa.gov/waterutilitvresponse/risk-disruptions-supplv-water-treatment-chemicals

Flinn Scientific, 2014. Safety Data Sheet for Aluminum Flydroxide, retrieved from
https://www.flinnsci.com/sds 39-aluminum-hvdroxide/sds 39/

National Center for Biotechnology Information (NCBI), 2022. PubChem Compound Summary for CID
10176082, Aluminum hydroxide, retrieved from
https://pubchem.ncbi.nlm.nih.gov/compound/Aluminum-hydroxide

The Aluminum Association, n.d. Alumina Refining 101, retrieved from https://www.aluminum.org/alumina-
refining-101

U.S. Geological Survey (USGS), 2022. 2018 Minerals Yearbook: Bauxite, retrieved from
https://pubs.usgs.gov/mvb/voll/2018/mvbl-2018-bauxi.pdf

U.S. International Trade Commission (USITC), 2021. Flarmonized Tariff Schedule (FITS) Search, retrieved from
https://hts.usitc.gov/

U.S. International Trade Commission (USITC), 2022. USITC DataWeb, retrieved from
https://dataweb.usitc.gov/

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Aluminum Hydroxide Supply Chain - Full Profile

World Integrated Trade Solutions (WITS), 2022. Trade Statistics by Product (HS 6-digit), retrieved from
https://wits.worldbank.org/trade/countrv-bvhs6product.aspx?lang=en#void

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