Ferrous Chloride Supply Chain - Executive Summary Ferrous Chloride Direct Use Chemical p-ecursor Chemical FeCI2 (liquid, solid) Inputs to Manufacturing Process: Hydrochloric Acid Iron Oxides Iron Derivative Water Treatment Chemicals: Ferric Chloride ^ % of Total Domestic Consumption Attributed to Water Sector: Greater than 10% /o\ Understanding Chemical Supply Chains Map of Suppliers & Manufacturers A. Product Family: Chlor-alkali Iron CAS No.: 7758-94-3 2 Shelf Life: 12+ Months — RISK OF SUPPLY DISRUPTION (Assessed in 2022) RISK RATING: Moderate-Low te-Low Moderaf ST *»t*e **">"¦ 6 i RISK DRIVERS Production of ferrous chloride depends on the steel industry and chlor-alkali industry to produce manufacturing inputs. Unplanned and planned reductions in chlor- alkali production capacity and decreased demand for steel have reduced the supply of ferrous chloride. RISK PARAMETERS Criticality: High. Essential for coagulation and dewatering. Likelihood: High. Previous regional disruptions in supply and significant price fluctuations that impacted the water sector. Vulnerability: Low. Distributed domestic manufacturing and supply. MANUFACTURING PROCESS Water Treatment Applications Iron Oxides Iron Ferrous Chloride Hydrochloric Acid Input End Use Coagulation Sludge dewatering Odor control Other Applications Textile dyeing Metallurgy Paint formulation DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE Domestic Manufacturing Locations (2015): 8, distributed throughout the U.S. (^) International Trade (2019) Primary Trading Partner (Imports): Canada Primary Trading Partner (Exports): Thailand Domestic Consumption (2019): 96 M kg ¦ Domestic Production (69 M kg) ¦ Imports for Consumption (28 M kg) ¦ Export of Domestic Production (0.20 M kg) &EPA ------- Ferrous Chloride Supply Chain - Full Profile Product Description Ferrous chloride (FeCI2), an inorganic iron salt, is a widely used coagulant, dewatering agent, and odor control agent. It is primarily produced as a byproduct of steel pickling, a process that relies on iron oxides and hydrochloric acid. Water treatment applications are the primary commercial use of ferrous chloride in the U.S. Use in Water Treatment Ferrous chloride is used as a coagulant in both wastewater and drinking water treatment and as a sludge dewatering and odor control agent (NCBI, 2021). Use as a Precursor to Other Water Treatment Chemicals Ferrous chloride is used to manufacture ferric chloride. Other Applications Ferrous chloride is used for textile dyeing, metallurgy, paint formulation, and as a chemical intermediate (NCBI, 2021). Primary Industrial Consumers Ferrous chloride is primarily used for wastewater treatment. Manufacturing, Transport, & Storage Manufacturing Process Iron, iron oxides, and hydrochloric acid are the primary materials used to produce ferrous chloride. The method most commonly used in North America utilizes a reaction of spent steel pickling liquors or scrap iron with hydrochloric acid. Pickling of steel removes the surface iron oxide from steel by immersion in a bath containing either a sulfuric or hydrochloric acid solution. When hydrochloric acid is used, mixed oxides in the oxidation layer of the steel as well as the underlying iron react with the hydrochloric acid to form ferrous chloride as shown in Figure 1. Ferrous chloride is then filtered and crystallized (Alcaraz et al., 2021; Michigan DEQ, 2015; Ozdemir, et. al, 2006). Reaction of Mixed Iron Oxides (Fe203, Fe304, and FeO) and Steel with Hydrochloric Acid Iron Oxide + Steel + Hydrochloric Acid —> Ferrous Chloride + Water Fe203 + Fe + 6HCI -> 3FeCI2 + 3H20 Iron Oxide + Steel + Hydrochloric Acid —> Ferrous Chloride + Water Fe304 + Fe + 8HCI -> 4FeCI2 + 4H20 Iron Oxide + Hydrochloric Acid —> Ferrous Chloride + Water FeO + 2HCI -> FeCI2 + H20 Iron + Hydrochloric Acid —> Ferrous Chloride + Hydrogen Fe + 2HCI -> FeCI2 + H2 Figure 1. Chemical Equation for the Reaction to Manufacture Ferrous Chloride Product Transport Ferrous chloride may be transported in bulk or container by truck, rail, barge, and ship (Kemira, 2010; SafeRack, 2022). EPA 817-F-22-026 | December 2022 c/EPA ------- Ferrous Chloride Supply Chain - Full Profile Storage and Shelf Life Ferrous chloride is corrosive, and should be stored in corrosion-resistant container. Ferrous chloride should be kept in a cool, dry area. When stored properly, ferrous chloride can have a shelf life in excess of 12 months (Kemira, 2010; Poly Processing, 2017). 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 ferrous chloride, trade data includes ferrous chloride as part of the trade category for iron chlorides. Table 1. Ferrous Chloride Production and Trade Data Sources Production and Trade Data Category Data Source Identifier Description Domestic Production 2020 TSCA Chemical Data Reporting CAS No.: 7758-94-3 Ferrous Chloride Imports and Exports U.S. International Trade Commission HTS Code: 827.39.55 Iron Chlorides, including Ferrous Chloride Total U.S. domestic manufacturing of ferrous chloride reported under the CDR was approximately 96 million kilograms (M kg) in 2019 (EPA, 2020). Domestic commercial manufacture of ferrous chloride takes place at a limited number of facilities throughout the contiguous U.S. Primary producers include NMLK Group (steel manufacturer) and Phibro-Tech (iron manufacturer and recycler). Most ferrous chloride production facilities rely on the availability of hydrochloric acid are associated with the steel industry. 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 ferrous chloride for use in drinking water treatment is 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, 2022a). 2 &EPA ------- Ferrous Chloride Supply Chain - Full Profile O O o o CP oo o 0 CD Domestic Supply and Manufacturing of Ferrous Chloride O 17 NSF/ANSI Standard 60 Certified Suppliers (NSF International, 2021) 0 8 Domestic Manufacturing Locations (EPA Chemical Data Reporting, 2016) Figure 2. Domestic Supply and Manufacturing of Ferrous Chloride Domestic Consumption U.S. consumption of ferrous chloride in 2019 is an estimate based on production of ferrous chloride and trade of a broader category of iron chlorides. Trade of ferrous chloride is an unknown percentage of import and export volume in this category. This estimate includes production of 96 M kg, import of 28 M kg, minus export of 0.20 M kg (EPA, 2020; USITC, 2021), as shown in Figure 3. Domestic Consumption (2019): M kg Domestic (69 M kg) ¦ Imports for Consumption (28 M kg) ¦ Export of Domestic Production (0.20 M kg) Figure 3. Domestic Production and Consumption of Ferrous Chloride in 2019 3 &EPA ------- Ferrous Chloride Supply Chain - Full Profile Trade & Tariffs Worldwide Trade Worldwide import and export data for ferrous 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 ferrous chloride are unavailable from the referenced sources. Table 2. WITS Worldwide Export and Import of Metal Chlorides, Including Ferrous 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. &EPA ------- Ferrous Chloride Supply Chain - Full Profile 30 Domestic Trade of Iron Chlorides HTS Code 2827.39.55 25 20 15 10 I £ £ £ o o Q. Q. F x .E uj o o Q. Q. F x S LJJ o o Q. Q. F * -E LU o Q. E o Q. X LU o o Q. Q. F x -E LU o o Q. CL F x .E LU 2015 2016 2017 2018 2019 2020 ¦ Imports from Canada ¦ Exports to Thailand ¦ Imports from Germany ¦ Exports to Kuwait ¦ Imports from Other Countries 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 ferrous 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 Evaluation History of Shortages The production of ferrous chloride in North America is heavily reliant on the steel industry and availability of 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. 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: 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 &EPA ------- Ferrous Chloride Supply Chain - Full Profile 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 Ferrous Chloride Risk Parameter Ratings and Drivers i 1 Criticality High 1 Likelihood High 1 1 Vulnerability Low 1 Ferrous chloride is an essential water treatment chemical. It is widely used as a coagulant and sludge dewatering agent. The water sector has experienced regional ferrous chloride supply disruptions and significant price fluctuations in the past. Lack of supply of key inputs (steel pickling liquor and 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 ^°V*e / Moderate «*ng9's/> r\ % •o 00 n> References Alcaraz, L., Sotillo, B., Marco, J.F., Alguacil, F.J., Fernandez, P. and Lopez, F.A., 2021. Obtention and Characterization of Ferrous Chloride FeCI2- 4H20 from Water Pickling Liquors. Materials, 14(17): 4840. 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 6 &EPA ------- Ferrous Chloride Supply Chain - Full Profile Kemira Water Solutions, 2010. Safety Data Sheet for Ferrous Chloride, retrieved from https://www.regionalsan.com/sites/main/files/file-attachments/liquid sulfide msds.pdf?1413575978 Michigan Department of Environmental Quality (DEQ), 2015. Activity Report: Scheduled Inspection, retrieved from http://www.deq.state.mi.us/Aps/downloads/SRN/B2371/B2371 SAR 20150826.pdf National Center for Biotechnology Information (NCBI), 2021. PubChem Compound Summary for CID 24458, Ferrous chloride, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/Ferrous-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. Poly Processing, 2017. "Be Sure Your Ferrous Chloride Storage Tanks Are Up to the Task." Poly Processing Website, April 27, 2017 [Blog], retrieved from https://blog.polyprocessing.com/blog/ferrous-chloride- storage-tanks SafeRack, 2022. Ferrous Chloride (FeCI2) Handling Design, Loading, and Installation, retrieved from https://www.saferack.com/bulk-chemical/ferrous- chloride/#:~:text=Ferrous%20chloride%20is%20tvpically%20shipped.off%2Dset%20crash%20box%20op enings U.S. International Trade Commission (USITC), 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 &EPA ------- |