Ferric Sulfate Supply Chain - Executive Summary Ferric Sulfate Direct Use Chemical Fe2(S04)3 (liquid, solid) Inputs to Manufacturing Process: Chlorine Ferrous Sulfate Sulfuric Acid J* Derivative Water Treatment Chemicals: * None ^ % of Total Domestic Consumption Attributed to Water Sector: Greater than 50% Understanding Chemical Supply Chains Map of Suppliers & Manufacturers A. Product Family: Chlor-alkali Iron CAS No.: 10028-22-5 2 Shelf Life: 12 Months — RISK OF SUPPLY DISRUPTION (Assessed in 2022) RISK RATING: Moderate-Low ate-L°w Modern RISK DRIVERS Production of ferric sulfate depends on the steel industry, and production of sulfuric acid and chlorine for manufacturing inputs. Decreased demand for steel and fluctuating availabil- ity of sulfuric acid and chlorine may influence the price for ferric sulfate. RISK PARAMETERS Criticality: High. Essential for coagulation. Likelihood: Moderate-Low. Previous significant price increases have impact- ed the water sector. Vulnerability: Low. Distributed domestic manufacturing and supply. Reliance on chlor-alkali and steel industries may in- crease vulnerability. MANUFACTURING PROCESS Water Treatment Applications Ferrous Sulfate Chlorine Ferric Sulfate Sulfuric Acid Input End Use Coagulation Other Applications • Aluminum etching • Soil conditioner • Chemical reaction catalyst • Dye fixative DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE Domestic Manufacturing Locations (2015): 11, distributed throughout the U.S. (^) International Trade (2019) PrimaryTrading Partner (Imports): China Domestic Production and Consumption Total domestic manufacturing of ferric sulfate reported under the TSCA CDR was approximately 266 M kg in 2019. Significantly, several domestic manufacturers of ferric sulfate did not report production. Due to this data gap and differences in reporting between production and trade data, U.S. consumption of ferric PrimaryTrading Partner (Exports): Canada sulfate could not be estimated. &EPA ------- Ferric Sulfate Supply Chain - Full Profile Product Description Ferric sulfate (Fe2(S04)3), a highly corrosive and acidic compound, is widely used in agriculture and chemical production. In water treatment, it is a commonly used coagulant. Ferric sulfate is primarily made from ferrous sulfate, commonly produced as a byproduct of steel pickling. Water treatment applications are the primary commercial use of ferric sulfate in the U.S. Use in Water Treatment Ferric sulfate is used as a coagulant in both drinking water and wastewater treatment (AWWA, 2014). Use as a Precursor to Other Water Treatment Chemicals Ferric sulfate is not used to manufacture other water treatment chemicals. Other Applications Ferric sulfate is used for aluminum etching, as a soil conditioner, a polymerization catalyst, a dye fixative, and as a hemostatic agent in dentistry (NCBI, 2021). Primary Industrial Consumers A considerable amount of the ferric sulfate produced worldwide is used in water treatment. Historically, water treatment has been the primary domestic use of ferric sulfate (NCBI, 2021). Manufacturing, Transport, & Storage Manufacturing Process Ferric sulfate is primarily produced through a reaction of ferrous sulfate, sulfuric acid, and an oxidant such as chlorine, nitric acid, or hydrogen peroxide. The equation shown in Figure 1 demonstrates the method of production where chlorine is used as an oxidizing agent (NCBI, 2021). Production starts with a solution of ferrous sulfate, which is commonly produced through the process of steel pickling. Ferrous sulfate derived as a byproduct of acid leaching of ilmenite to recover titanium dioxide is a less common source of ferrous sulfate in North America. The manufacturing process for ferrous sulfate production through steel pickling and iron oxide leaching from ilmenite are described in the ferrous sulfate supply chain profile (EPA, 2022a). Using an oxidant such as chlorine, ferrous sulfate is oxidized to ferric sulfate with controlled addition of sulfuric acid. Ferrous Sulfate + Sulfuric Acid + Chlorine Gas — > Ferric Sulfate + Hydrochloric Acid 2FeSC>4 + H2SO4 + CI 2 — > Fe2(S04)3 + 2HCI Figure 1. Chemical Equation for the Reaction to Manufacture Ferric Sulfate Product Transport Ferric sulfate is commonly transported by truck, rail, barge, and ship (Chemtrade Logistics, 2020). Storage and Shelf Life Ferric sulfate is stable under recommended storage conditions, but degrades when exposed to direct sun and heat. When stored properly, ferric sulfate can have a shelf life of approximately twelve months, though stability may depend upon many factors (Chemtrade Logistics, 2020). EPA 817-F-22-025 | December 2022 svEPA ------- Ferric Sulfate Supply Chain - Full Profile 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 sulfate, trade data includes ferric sulfate as part of a broader trade category of metal sulfates. For imports, the trade category is specific to iron sulfates, while the export trade category includes ferric sulfate among metal sulfates, 'not elsewhere specified' (NES). Table 1. Chlorine Production and Trade Data Sources Production and Trade Data Category Data Source Identifier Description Domestic Production 2020 TSCA Chemical Data Reporting CAS No.: 10028-22-5 Ferric Sulfate Imports and Exports U.S. International Trade Commission HTS Code (Imports): 2833.29.2000 HS Code (Exports): 2833.29 Iron Sulfates Metal Sulfates, NES Total U.S. domestic manufacturing of ferric sulfate reported under the CDR was approximately 266 million kilograms (M kg) in 2019 (EPA, 2020). Domestic commercial manufacture of ferric sulfate takes place at select facilities located throughout the contiguous U.S. Primary producers include Chemtrade Logistics, Kemira Water Solutions, and Thatcher Chemical. Most ferric sulfate production facilities rely on the availability of ferrous sulfate and an oxidant such as chlorine, nitric acid, or hydrogen peroxide. 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 sulfate 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 Sulfate Supply Chain - Full Profile Domestic Consumption Due to differences in reporting for production and trade data, as well as the significant number of producers that did not report production data under the CDR, U.S. consumption of ferric sulfate could not be estimated. Domestic production of ferric sulfate may represent an unknown quantity of the import and export volume for the category of metal sulfates including ferric sulfate. Trade &Tariffs Worldwide Trade Worldwide import and export data for ferric sulfate are reported through the World Bank's World Integrated Trade Solutions (WITS), as a category representing metal sulfates, NES. In 2021, the U.S. ranked 18th worldwide in total exports and second in total imports of metal sulfates, NES. In 2021, Germany ranked first worldwide in total exports and imports (WITS, 2022), as shown in Table 2. Import and export data specific to ferric sulfate is unavailable from the referenced sources. 3 svEPA ------- Ferric Sulfate Supply Chain - Full Profile Table 2. WITS Worldwide Export and Import of Metal Sulfates, NES, Including Ferric Sulfate in 2021 2021 Worldwide Trade Metal Sulfates, NES (HS Code 2833.29) Top 5 Worldwide Exporters Top 5 Worldwide Importers Germany 836 M kg Germany 348 M kg China 636 M kg United States 267 M kg Poland 257 M kg Austria 144 M kg Spain 129 M kg United Kingdom 99 M kg Slovenia 119 M kg Sweden 93 M kg Domestic Imports and Exports Domestic imports and export data are reported by USITC in categories for metal sulfates. For imports, the trade category is specific to iron sulfates, while the export trade category includes sulfates NES. Figure 3 summarizes imports for consumption1 and domestic exports2 between 2015 and 2020. During this period, the overall quantity of imports varied between 62 and 94 M kg. The quantity of exports was consistently much smaller than the quantity of imports. Over this five-year period, Canada was the primary recipient of domestic exports while China replaced Canada and Spain as the primary source of imports (USITC, 2021). 120 100 80 I? 60 5 40 20 Domestic Trade of Iron Sulfates (Imports) and Metal Sulfates, NES (Exports) HS Code 2833.29 .. I. I. I. I. 2015 2016 2017 2018 2019 2020 ¦ Imports from China ¦ Exports to Canada ¦ Imports from Spain I Exports to Mexico I Imports from Other Countries Exports to Other Countries Figure 3. USITC Domestic Import and Export of Iron Sulfates 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 f/EPA ------- Ferric Sulfate Supply Chain - Full Profile Tariffs There is no general duty for import of iron sulfates, however there is an additional 25% duty on imports from China (USITC, 2022), as summarized in Table 3. Table 3. 2021 Domestic Tariff Schedule for Iron Sulfates HTS Number General Duty Additional Duty - China (Section 301 Tariff List) Special Duty 2833.29.2000 None 25% None Market History & Risk Assessment History of Shortages The production of ferric sulfate in North America is heavily reliant on the steel industry for the precursor, ferrous sulfate, as well as supply of sulfuric acid and chlorine. Economic slowdowns and a drop in domestic steel manufacturing along with greater recycling of steel pickling liquor and availability of chlorine have been known to impact the availability of ferric sulfate and have led to significant price fluctuations for ferric sulfate. 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. 5 f/EPA ------- Ferric Sulfate Supply Chain - Full Profile Table 4. Supply Chain Risk Evaluation for Ferric Sulfate Risk Parameter Ratings and Drivers ICriticality High 1 (Vulnerability Low 1 Ferric sulfate is an essential water treatment chemical, widely used as a coagulant. The water sector has experienced significant price increases in the past, but has not experienced supply chain disruptions between 2000 and 2022. 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 may increase vulnerability. Risk Rating: Moderate-Low te-L°w Modern Rar)Se / References American Waterworks Association (AWWA), 2014. B406, Ferric Sulfate. Denver, CO: American Waterworks Association. Chemtrade Logistics, 2020. Liquid Ferric Sulfate Product Profile, retrieved from https://www.chemtradelogistics.com/product/ferric-sulphate/ 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 National Center for Biotechnology Information (NCBI), 2021. PubChem Compound Summary for CID 24826, Ferric Sulfate, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/Ferric-sulfate 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 f/EPA ------- Ferric Sulfate Supply Chain - Full Profile U.S. International Trade Commission, 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 f/EPA ------- |