Ferric Chloride Supply Chain - Executive Summary Ferric Chloride Direct Use Chemical FeCI3 (liquid, solid) Inputs to Manufacturing Process: Chlorine Ferrous Chloride J* Derivative Water Treatment Chemicals: * None ^ % of Total Domestic Consumption Attributed to Water Sector: Approximately 80% Understanding Chemical Supply Chains Map of Suppliers & Manufacturers A. Product Family: Chlor-alkali Iron CAS No.: 7705-08-0 2 Shelf Life: 6-12 Months — RISK OF SUPPLY DISRUPTION (Assessed in 2022) RISK RATING: Moderate-Low ,eiaw-ww Mode/a, RISK DRIVERS Production of ferric chloride de- pends on the steel and chlor- alkali industries to produce manu- facturing inputs. Unplanned and planned reductions in chlor-alkali production capacity and de- creased demand for steel have reduced the supply of ferric chlo- ride. RISK PARAMETERS Criticality: High. Essential for coagulation and dewatering. Likelihood: High. Previous regional disruptions in supply that impacted the water sector. Vulnerability: Low. Distributed domestic manufacturing and supply. MANUFACTURING PROCESS Water Treatment Applications Ferrous Chloride Chlorine Ferric Chloride Input End Use Coagulation Sludge dewatering Other Applications Etching • Metal surface treatment • Chemical reaction catalyst DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE Domestic Manufacturing Locations (2015): 19, distributed throughout the U.S. (^) International Trade (2019) PrimaryTrading Partner (Imports): Canada PrimaryTrading Partner (Exports): Thailand Domestic Consumption (2019): 322 M kg I Domestic Production (294 M kg) ¦ Imports for Consumption (28 M kg) I Export of Domestic Production (0.2 M kg) &EPA ------- Ferric Chloride Supply Chain - Full Profile Product Description Ferric chloride (FeCI3), an inorganic iron salt, is a widely used coagulant and dewatering agent. It is primarily produced as a byproduct of steel pickling, a process that relies on iron oxide, hydrochloric acid, and chlorine. Water treatment applications are the primary commercial use of ferric chloride in the U.S. Use in Water Treatment Ferric chloride is used as a coagulant in both drinking water and wastewater treatment and as a sludge dewatering agent (NCBI, 2021). Use as a Precursor to Other Water Treatment Chemicals Ferric chloride is not used as a precursor in the commercial manufacture of other water treatment chemical. Other Applications Ferric chloride is used for electronic and photographic etching, metal surface treatment, and as a catalyst in chemical reactions for products such as vinyl chloride (NCBI, 2021). Primary Industrial Consumers A considerable amount of the ferric chloride produced worldwide is used in water treatment. It estimated that 80% of domestic consumption of ferric chloride is used in water treatment, with used in wastewater treatment (NCBI, 2021). Manufacturing, Transport, & Storage Manufacturing Process Ferric chloride can be produced with a number of starting materials. Production may start with the process of steel pickling or with a solution of ferrous chloride produced through steel pickling. Ilmenite, the raw material used to produce titanium dioxide, can also be used but is a less common source of iron oxide in North America. The method most commonly used in North America utilizes a reaction of spent steel pickling liquors with hydrochloric acid, followed by subsequent chlorination of the product (AWWA, 2012). Pickling of steel removes the surface mixed iron oxides through immersion in a bath containing either a sulfuric or hydrochloric acid solution. As described in the manufacturing process for the ferrous chloride supply chain (EPA, 2022a), when hydrochloric acid is used the mixed oxides in the oxidation layer of the steel as well as the underlying iron react with the hydrochloric acid to form ferrous chloride. The solution is reacted with additional hydrochloric acid to produce ferrous chloride with a higher iron and lower acid concentration. The solution is filtered and chlorinated, resulting in production of a concentrated ferric chloride solution, as shown in Figure 1 (Alcaraz et al., 2021; Michigan DEQ, 2015; Ozdemir, et. al, 2006). Ferrous Chloride + Chlorine —> Ferric Chloride 2FeCI2 + Cl2 -> 2FeCI3 Figure 1. Chemical Equation for the Reaction to Manufacture Ferric Chloride Ilmenite, the raw material used to produce titanium dioxide can also be used but is a less common source of iron oxides in North America. Production as a byproduct of the manufacture of titanium dioxide results from the process to remove the iron oxide impurities present in low-grade titanium ore such as ilmenite. Iron oxides can be removed through a process of selective chlorination, which involves heating the titanium ore in the presence has been the majority EPA 817-F-22-024 | December 2022 svEPA ------- Ferric Chloride Supply Chain - Full Profile of additional carbon and chlorine gas and results in titanium tetrachloride, carbon monoxide, and ferric chloride (EPA, 2001; Habashi et al., 2014; Jung et al., 2021). Product Transport Ferric chloride may be transported in bulk or container by truck, rail, and ship (LabChem, 2017). Storage and Shelf Life Ferric chloride is corrosive and acidic, and as such should be stored in corrosion-resistant container in a cool, dry area. When stored properly, ferric chloride can have a shelf life of approximately 6-12 months (LabChem, 2017; SalChem, 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 ferric chloride, trade data includes ferric chloride as part of the trade category for iron chlorides. Table 1. Ferric Chloride Production and Trade Data Sources Production and Trade Data Category Data Source Identifier Description Domestic Production 2020 TSCA Chemical Data Reporting CAS No.: 7705-08-0 Ferric Chloride Imports and Exports U.S. International Trade Commission HTS Code: 2827.39.55 Iron Chlorides, including Ferric Chloride Total U.S. domestic manufacturing of ferric chloride reported under the CDR was approximately 322 million kilograms (M kg) in 2019 (EPA, 2020). Domestic commercial manufacture of ferric chloride takes place at select facilities located throughout the contiguous U.S. Primary producers include PVS Technologies, Inc., and Kemira Water Solutions. Most ferric chloride production facilities rely on the availability of chlorine and hydrochloric acid, as well as scrap steel. 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 ferric chloride for use in drinking water treatment is widely distributed throughout the U.S. (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. 2022b). 2 f/EPA ------- Ferric Chloride Supply Chain - Full Profile O "T! Domestic Supply and Manufacturing of Ferric Chloride O 88 NSF/ANSI Standard 60 Certified Suppliers (NSF International, 2021) 19 Domestic Manufacturing Locations (EPA Chemical Data Reporting, 2016) Figure 2. Domestic Supply and Manufacturing of Ferric Chloride Domestic Consumption U.S. consumption of ferric chloride in 2019 is an estimate based on production of ferric chloride and trade of a broader category of iron chlorides. Trade of ferric chloride is an unknown percentage of import and export volume in this category. This estimate includes production of 294 M kg, import of 28 M kg, minus export of 0.2 M kg (EPA, 2020; USITC, 2021), as shown in Figure 3. Imports and exports represent small quantities when compared to domestic production. Domestic Consumption (2019): 322 M kg ¦ Domestic Production (294 M kg) Imports I ¦ for Consumption (28 M kg) Export of ¦ Domestic Production (0,2 M kg) Figure 3. Domestic Production and Consumption of Ferric Chloride in 2019 3 svEPA ------- Ferric Chloride Supply Chain - Full Profile Trade &Tariffs Worldwide Trade Worldwide import and export data for ferric chloride are reported through the World Bank's World Integrated Trade Solutions (WITS), as a category representing metal chlorides of tin, barium, iron, cobalt, and zinc. In 2021, the U.S. ranked 14th worldwide in total exports and 8th in total imports of metal chlorides. In 2021, Germany ranked first worldwide in total exports (WITS, 2022), as shown in Table 2. Import and export data specific to ferric chloride are unavailable from the referenced sources. Table 2. WITS Worldwide Export and Import of Metal Chlorides, Including Ferric Chloride in 2021 2021 Worldwide Trade Metal Chlorides of Tin, Barium, Iron, Cobalt, Zinc (HS Code 2827.39) Top 5 Worldwide Exporters Top 5 Worldwide Importers Germany 194 M kg Netherlands 79 M kg China 110 M kg France 78 M kg France 84 M kg India 76 M kg Belgium 79 M kg Belgium 75 M kg India 71 M kg Germany 69 M kg Domestic Imports and Exports Domestic imports and export data are reported by USITC in categories inclusive of all iron chlorides. Figure 4 summarizes imports for consumption1 and domestic exports2 of iron chlorides between 2015 and 2020. During this period, the overall quantity of imports grew steadily. The overall quantity of exports was much smaller than the quantity of imports, with average values of 0.4 M kg and 19.2 M kg, respectively. Over this five-year period, Thailand was the primary recipient of domestic exports while Canada was the primary source of imports (USITC, 2021). 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. f/EPA ------- Ferric Chloride Supply Chain - Full Profile 30 Domestic Trade of Iron Chlorides HTS Code 2827.39.55 25 e- 20 15 10 I o o Q. Q. o o Q. Q. o o Q. Q. o o Q. Q. o o Q. Q. o o Q. Q. C x C |_U C x C LU C x C LU C x C LU C x C LU C x C LU 2015 2016 2017 2018 2019 2020 I Imports from Canada I Imports from Germany Imports from Other Countries I Exports to Thailand Exports to Kuwait Exports to Other Countries Figure 4. USITC Domestic Import and Export of Iron Chlorides between 2015 and 2020 Tariffs There is a 3.7% general duty for import ferric chloride and an additional 25% duty on imports from China (USITC, 2022), as summarized in Table 3. Table 3. 2021 Domestic Tariff Schedule for Iron Chlorides HTS Number General Duty Additional Duty-China (Section 301 Tariff List) Special Duty 2827.39.55 3.7% 25% Free for A, AU, BH, CA, CL, CO, D, E, IL, JO, KR, MA, MX, OM, P, PA, PE, SG3 Market History & Risk Assessment History of Shortages The production of ferric chloride in North America is heavily reliant on the steel industry for the precursor, ferrous chloride, and the chlor-alkali industry for chlorine and hydrochloric acid. Economic slowdowns and a drop in domestic steel manufacturing along with greater recycling of steel pickling liquor and fluctuating prices for hydrochloric acid have been known to impact the availability of ferrous chloride and have led to price fluctuations for ferric chloride. In the fall of 2020 and continuing through 2021, there were disruptions in the supply of chlorine and hydrochloric acid. Concurrently, there was also a contraction in domestic steel production, which reduced availability of spent steel pickling liquors. Discussion with industry representatives indicated that challenges in obtaining ferric chloride were primarily due to a shortage of hydrochloric acid and spent pickling liquor. In 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.eov/s/article/Article-310?laneuaee=en US and the General Notes Section of the Harmonized Tariff Schedule https://hts.usitc.eov/current 5 f/EPA ------- Ferric Chloride Supply Chain - Full Profile addition to the shortage of precursors, there was also a series of equipment failures at a major ferric chloride production facility, and due to the specialized nature of the equipment, it took months to complete the repairs and restore facility operations. There were also reports of truck and driver shortages impacting all parts of the supply chain. Risk Evaluation The complete risk evaluation methodology is described in Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions (EPA, 2022c). 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. Table 4. Supply Chain Risk Evaluation for Ferric Chloride Risk Parameter Ratings and Drivers 1 i ICriticality High 1 Likelihood High (Vulnerability Low 1 Ferric chloride is an essential water treatment chemical. It is widely used as a coagulant and sludge dewatering agent. The water sector has experienced regional ferric chloride supply disruptions and significant price fluctuations in the past. Lack of supply of key inputs (steel pickling liquor, chlorine, and hydrochloric acid) contributed to a shortage in 2021. Strong domestic manufacturing capabilities and a distributed manufacturing base provide some resilience to supply disruptions. However, the reliance on supply from both the chlor-alkali and steel industries increases vulnerability. Risk Rating: Moderate-Low tate-L°w V^e / M°deraf(? 's/> r\ % t ao (0 6 f/EPA ------- Ferric Chloride Supply Chain - Full Profile References American Water Works Association (AWWA), 2012. B407, Ferric Chloride. Denver, CO: American Water Works Association. EPA, 2001. Final Titanium Dioxide Listing Background Document for the Inorganic Chemical Listing Determination, retrieved from https://archive.epa.gov/epawaste/hazard/web/pdf/tio2-bd.pdf 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. Ferrous Chloride Supply Chain - Full Profile, retrieved from https://www.epa.gov/waterutilitvresponse/water-treatment-chemical-supplv-chain-profiles EPA, 2022b. Chemical Suppliers and Manufacturers Locator Tool, retrieved from https://www.epa.gov/waterutilitvresponse/chemical-suppliers-and-manufacturers-locator-tool EPA, 2022c. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved from https://www.epa.gov/waterutilitvresponse/risk-disruptions-supplv-water-treatment-chemicals Flabashi, F., Kamaleddine, F. and Bourricaudy, E., 2014. A new process to upgrade ilmenite to synthetic rutile. Metall, 69, pp.27-30. Jung, E.J., Kim, J. & Lee, Y.R. 2021. A comparative study on the chloride effectiveness of synthetic rutile and natural rutile manufactured from ilmenite ore. Nature: Scientific Report, 11:4045. LabChem, 2017. Ferric Chloride Safety Data Sheet, retrieved from http://www.labchem.com/tools/msds/msds/LC14380.pdf Michigan Department of Environmental Quality (DEQ), 2015. Activity Report: Scheduled Inspection, retrieved from https://www.egle.state.mi.us/aps/downloads/SRN/B2371/B2371 SAR 20150826.pdf National Center for Biotechnology Information (NCBI), 2021. PubChem Compound Summary for CID 24380, Ferric chloride, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/Ferric-chloride NSF International, 2021. Search for NSF Certified Drinking Water Treatment Chemicals, retrieved from https://info.nsf.org/Certified/PwsChemicals/ Ozdemir, T., Oztin C., and Kincal, N, 2006. Treatment of waste pickling liquors: Process synthesis and economic analysis. Chemical Engineering Communications, 193(5): 548-563. SalChem, 2015. Ferric Chloride Safety Data Sheet, retrieved from https://chemistryconnection.com/sds/data/pdf/Sodium Tripolyphosphate SDS.pdf U.S. International Trade Commission, 2021. USITC DataWeb, retrieved from https://dataweb.usitc.gov/ U.S. International Trade Commission (USITC), 2022. Harmonized Tariff Schedule (HTS) Search, retrieved from https://hts.usitc.gov/ World Integrated Trade Solutions, 2022. Trade Statistics by Product (HS 6-digit), retrieved from https://wits.worldbank.org/trade/countrv-bvhs6product.aspx?lang=en#void 7 f/EPA ------- |