Disodium Phosphate Supply Chain - Executive Summary Disodium Phosphate Direct Use Chemical Precursor Chemical Na2HP04 (liquid or solid) Source of Raw Material: ^ % of Total Domestic Consumption Sodium Carbonate Sodium Hydroxide Attributed to Water Sector: Phosphoric Acid More than 10% ^ Derivative Water Treatment Chemicals: dab Understanding Chemical Supply Chains Sodium Polyphosphates Map of Suppliers & Manufacturers gQ Product Family: Phosphate CAS No.: 7558-79-4 2 Shelf Life: 24 Months — RISK OF SUPPLY DISRUPTION (Assessed in 2022) RISK RATING: Moderate-High ie-Low Moderaf & RISK DRIVERS Strong reliance on the international market for manu- facturing inputs, primarily phosphoric acid, and finished product. Increased competition and reliance on imports have challenged phosphate manu- facturers. Regional phosphoric acid supply disruptions have occurred between 2000 and 2022. RISK PARAMETERS Criticality: High. Essential for corrosion control and production of water treat- ment chemicals. Likelihood: Moderate-Low. The water sector experienced regional supply dis- ruptions between 2000 and 2022. Vulnerability: Moderate-High. Manufac- turing and supply is limited, and supply is import-dependent with a high tariff on the most significant source of imports. PRODUCTION PROCESS Water Treatment Applications Phosphoric Acid Sodium Hydroxide Sodium Carbonate Disodium Phosphate • Corrosion control • Water treatment chemical production Other Applications Input End Use • Food production • Industrial buffering agent • Cleaning products • Corrosion control DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE Domestic Production Locations (2015): ^ 4, located in Kansas, Illinois, Georgia, and Minnesota. (^) International Trade (2019) Primary Trading Partner (Imports): China Primary Trading Partner (Exports): Mexico Mono- and Disodium Phosphate Domestic Consumption (2019): 19 Million kg Domestic Production (12 M kg) ¦ Imports for Consumption (10 M kg) Export of Domestic Production (3 M kg) &EPA ------- Disodium Phosphate Supply Chain - Full Profile Product Description Disodium phosphate (Na2HP04), is a widely used derivative product of phosphoric acid. Disodium phosphate is used directly in water treatment on its own for corrosion control or blended with polyphosphates for corrosion control and scale inhibition, and also as an input in the manufacturing of sodium polyphosphates. Disodium phosphate is commonly used in dairy product processing and as a buffering agent in industrial processes such as textile manufacturing. Use in Water Treatment Disodium phosphate is used directly in corrosion control and blended with polyphosphates for corrosion control and scale inhibition. Use as a Precursor to Other Water Treatment Chemicals Disodium phosphate is used to manufacture sodium polyphosphates. Other Applications Disodium phosphate is widely used as an emulsifier, pH buffering agent, and stabilizer in food production, and as buffering agent in textile production. Other significant uses include formulation of cleaning agents and detergent products, and water treatment (NCBI, 2021). Primary Industrial Consumers Significant uses of disodium phosphate include use in food production, pH buffering for industrial processes such as textile processing, formulation of cleaning products, and corrosion control and anti-scaling applications in water treatment (EPA, 2020; NCBI 2021). Manufacturing, Transport, & Storage Manufacturing Process The majority of disodium phosphate produced in the U.S. starts with phosphoric acid and either sodium hydroxide or sodium carbonate. Wet process phosphoric acid which has been further concentrated and processed to produce a high purity product or thermal phosphoric acid are used. No information was available regarding the preferential use of sodium hydroxide or sodium carbonate, and they may be interchangeable in the manufacture of disodium phosphate. The most common disodium phosphate manufacturing process proceeds in several steps, the overall equation for this process is outlined in Figure 1, noting methods for use of sodium hydroxide and sodium carbonate. In both methods, phosphoric acid is neutralized with either sodium hydroxide or sodium carbonate. Phosphate crystals form and are separated from the solution. Based on the molar ratio of phosphoric acid and sodium carbonate or sodium hydroxide, a slurry of monosodium phosphate, disodium phosphate, or a mixture of monosodium and disodium phosphates is produced. The hydrated crystals may be dehydrated in a rotary kiln to obtain anhydrous disodium phosphate (AWWA, 2018; NCBI, 2021). EPA 817-F-22-023 | December 2022 xvEPA ------- Disodium Phosphate Supply Chain - Full Profile Method 1 Phosphoric Acid + Sodium Hydroxide —3 Disodium Phosphate + Water H3PO4 + 2NaOH > Na2HP04 + 2H20 Method 2 Phosphoric Acid + Sodium Carbonate — > Disodium Phosphate + Carbon Dioxide + Water H3PO4 + Na2C03 > Na2HP04 + + O u H20 Figure 1. Chemical Equation for the Reaction to Manufacture Disodium Phosphate Product Transport Disodium phosphate, primarily supplied as a solution but also available as a solid or powder, is widely transported in container and bulk by truck, rail, barge, and ship. Storage and Shelf Life Disodium phosphate is stable and generally non-reactive. When stored properly, disodium phosphate can have a shelf life of approximately 24 months (ICL Performance Products, 2015; Hill Brothers Chemical Company, 2015). 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. While production data is specific to disodium phosphate, trade data are for the category of monosodium and disodium phosphates. Table 1. Disodium Phosphate Production and Trade Data Sources Production and Trade Data Category Data Source Identifier Description Domestic Production 2020 EPA Chemical Data Reporting CAS No.: 7558-79-4 Disodium Phosphate Imports and Exports U.S. International Trade Commission HS Code: 2835.22 Monosodium and Disodium Phosphate Total reported U.S. domestic production of disodium phosphate for commercial sale was approximately 0.5 million kilograms (M kg) in 2019 (EPA, 2020). Only one domestic producer, Hydrite Chemical Company, offered production information. The majority of domestic producers of disodium phosphate claimed confidential business information and did not report domestic production volume in 2019. Historically, there are few domestic producers, and in 2019 only 5 companies reported domestic production. The number of domestic manufacturing locations shown in Figure 2 represents operating facilities as of 2015 (EPA, 2016). Supply of NSF/ANSI Standard 60 certified disodium phosphate for use in drinking water treatment is limited (NSF International, 2021). For a more current listing of manufacturing locations and supplier locations, visit the U.S. Environmental Protection Agency's (EPA's) Chemical Locator Tool (EPA, 2022a). 2 oEPA ------- Disodium Phosphate Supply Chain - Full Profile Figure 2. Domestic Supply and Manufacturing of Disodium Phosphate Domestic Consumption U.S. consumption of monosodium and disodium phosphate in 2019 is estimated at 19 M kg. This estimate includes combined production of 12 M kg, import of 10 M kg, minus export of 3 M kg, as shown in Figure 3. Of this, domestic production of disodium phosphate (0.5 M kg) represented 4% of all production (EPA, 2020; USITC 2021). Domestic Consumption (2019): 19 Million kg Domestic Production (12 M kg) ¦ Imports for Consumption (10 M kg) ¦ Export of Domestic Production (3 M kg) Figure 3. Domestic Production and Consumption of Monosodium and Disodium Phosphate in 2019 3 &ERA ------- Disodium Phosphate Supply Chain - Full Profile Trade &Tariffs Worldwide Trade Worldwide import and export data for disodium phosphate is reported through the World Bank's World Integrated Trade Solutions (WITS) software, as a category including both monosodium and disodium phosphate. In 2021, the U.S. ranked fifth worldwide in total exports and first in total imports of monosodium and disodium phosphate. In 2021, China ranked first worldwide in total exports (WITS, 2022) as shown in Table 2. Table 2. WITS Worldwide Export and Import of Monosodium and Disodium Phosphate in 2021 2021 Worldwide Trade Monosodium and Disodium Phosphate (HS Code 2835.22) Top 5 Worldwide Exporters Top 5 Worldwide Importers China 26 M kg United States 14 M kg Germany 13 M kg Malaysia 11 M kg France 5 M kg Thailand 8 M kg Thailand 5 M kg Indonesia 4 M kg United States 4M kg Kenya 4 M kg Domestic Imports and Exports Domestic import and export data are reported by USITC in a category which includes both monosodium and disodium phosphate. Figure 4 summarizes imports for consumption1 and domestic exports2 between 2015 and 2020. During this period, the overall quantity of imports remained relatively steady, with imports consistently exceeding exports, while the quantity of exports has decreased. Over this five-year period, Mexico was the primary recipient of domestic exports while China was the primary source of imports (USITC, 2021). Domestic Trade of Mono- and Disodium Phosphate 14 HTS Code 2835.22 12 10 I; I. L li 1.1.1. (/) i/i t r. t t? oo oo oo oo oo oo Q.Q. Q.Q. Q.Q. Q.Q. Q.Q. Q.Q. EX C X C X C X C X C X 11 I C UJ C (JJ C LXJ C UJ C QJ 2015 2016 2017 2018 2019 2020 ¦ Imports from China ¦ Exports to Mexico ¦ Imports from Germany ¦ Exports to Canada ¦ Imports from Other Countries Exports to Other Countries Figure 4. USITC Domestic Import and Export of Monosodium and Disodium Phosphate 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. 4 oEPA ------- Disodium Phosphate Supply Chain - Full Profile Tariffs There is a 1.4% general duty for import of disodium phosphate and an additional 25% duty on imports from China (USITC, 2022), as summarized in Table 3. Imports of monosodium and disodium phosphate are primarily supplied from China and Germany. Though an additional 25% duty was added to imports from China in 2019, the quantity of imports of monosodium and disodium phosphate from China did not decrease between 2019 and 2021 (USITC, 2021). Table 3. 2020 Domestic Tariff Schedule for Disodium and Monosodium Phosphate HS Code General Duty Additional Duty - China (Section 301 Tariff List) Special Duty 2835.22 1.4% 25% Free (A, AU, BH, CL, CO, D, E, IL, JO, KR, MA, OM, P, PA, PE, S, SG)3 Market History & Risk Evaluation History of Shortages Disruptions to phosphoric acid production and the supply chain for phosphate rock can have a significant impact on availability of phosphoric acid and phosphates used in corrosion control applications. The increased demand for phosphoric acid and phosphates for use in fertilizers and animal feed has led to price increases and supply disruptions. Domestic manufacturers and suppliers of phosphate-based water treatment chemicals oftentimes rely on the international market for supply of phosphate rock and phosphoric acid and may encounter persistent challenges in obtaining these raw materials. This has led to repeated shortages of phosphate-based water treatment chemicals. In 2021, disruptions in international trade caused by the COVID-19 pandemic severely challenged these manufacturers. Risk Evaluation The complete risk assessment methodology is described in Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions (EPA, 2022b). 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. 3 Symbols used to designate the various preference programs and trade agreements. A full list of special trade agreements and associated acronyms can be found at https://help.cbp.gov/s/article/Article-310?language=en US and the General Notes Section of the Harmonized Tariff Schedule https://hts.usitc.gov/current 5 oEPA ------- Disodium Phosphate Supply Chain - Full Profile Table 4. Supply Chain Risk Evaluation for Disodium Phosphate Risk Parameter Ratings and Drivers 1 ICriticality High (Vulnerability Moderate-High 1 Disodium phosphate is essential to the water sector and has widespread application for corrosion control. It is a precursor in the production of sodium polyphosphates. The water sector has experienced regional disodium phosphate supply disruptions in the past. Concerns are primarily due to increased competition and reliance on imports for raw materials and inputs (phosphate rock and phosphoric acid, respectively). Domestic manufacturing and supply are limited, and there is a significant reliance on imports for both inputs and finished product. As of 2022, there was a high tariff on the most significant source of imports. Risk Rating: Moderate-High & & it e^e-L°w t\ Aoderafe RanSe ^ «r t ¦3 1 References American Water Works Association (AWWA), 2018. B504, Disodium Phosphate. Denver, CO: American Water Works Association. EPA, 2016. 2016 TSCA Chemical Data Reporting, retrieved from https://www.epa.gov/chemical-data- reporting/access-cdr-data#2016 EPA, 2020. 2020 TSCA Chemical Data Reporting, retrieved from https://www.epa.gov/chemical-data- reporting/access-cdr-data#2020 EPA, 2022a. Chemical Suppliers and Manufacturers Locator Tool, retrieved from https://www.epa.gov/waterutilitvresponse/chemical-suppliers-and-manufacturers-locator-tool EPA, 2022b. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved from https://www.epa.gov/waterutilitvresponse/risk-disruptions-supplv-water-treatment-chemicals Hill Brothers Chemical Company, 2015. Safety Data Sheet for Disodium Phosphate, retrieved from https://www.hillbrothers.eom/pdf/downloads/msds/sds/n/disodium-phosphate-sds.pdf ICL Performance Products, 2015. Shelf life and storage conditions statement, retrieved from https://ingredi.com/content/pdfs/TSPc Shelf life.pdf National Center for Biotechnology Information (NCBI), 2021. PubChem Compound Summary for CID 24203, Disodium phosphate, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/Disodium-hvdrogen- phosphate NSF International, 2021. Search for NSF Certified Drinking Water Treatment Chemicals, retrieved from https://info.nsf.org/Certified/PwsChemicals/ U.S. International Trade Commission (USITC), 2021. USITC DataWeb, retrieved from https://dataweb.usitc.gov/ 6 oEPA ------- Disodium Phosphate Supply Chain - Full Profile U.S. International Trade Commission (USITC), 2022. Harmonized Tariff Schedule (HTS) Search, retrieved from https://hts.usitc.gov/ 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 7 oEPA ------- |