Sulfur Dioxide Supply Chain Full Profile


Sulfur Dioxide Supply Chain - Executive Summary

Sulfur Dioxide

E>irect Use Chemical Precursor Chemical

so2

(liquified gas) °9o

Inputs to Manufacturing Process:

Sulfur	Oxygen

^ Derivative Water Treatment Chemicals:

Sodium Metabisulfite
Sodium Thiosulfate

^ % of Total Domestic Consumption
Attributed to Water Sector:

Less than 10%

6b Understanding Chemical Supply Chains
Map of Suppliers & Manufacturers

Product Family:

Sulfur

CAS No.: 7446-09-5

Shelf Life:

12 Months

— RISK OF SUPPLY DISRUPTION (Assessed in 2022)

RISK RATING: Moderate-Low

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RISK DRIVERS

The water sector has experi-
enced historic significant price
increases and interruption of
supply. Concerns are primarily
due to periodic reductions in
production of raw material
(sulfur), the dominant use of the
raw material for manufacturing
of sulfuric acid, and the need for
long-distance transport from
limited manufacturing locations.

RISK SCORE PARAMETERS

Criticality: High. Essential for dechlo-
rination and production of water treat-
ment chemicals.

Likelihood: High. Previous significant
price increases and supply disruptions.
Concerns related to periodic reduction
in supply of raw material (sulfur)

Vulnerability: Low. Domestic produc-
tion is limited but distributed. Imports
play a role in meeting domestic
demand.

MANUFACTURING PROCESS

Water T reatment Applications

•	Dechlorination

•	Water treatment chemical production

Other Applications

•	Chemical manufacturing

•	Pulp and paper production

•	Food and agricultural processing

•	Ore refining

DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE

Domestic Manufacturing Locations (2015):

^ 5 locations in California, Texas, Tennessee,

Illinois, and Indiana

(^) International Trade (2019)

Primary Trading Partner (Imports):

Czech Republic

Primary Trading Partner Exports): Singapore

Domestic Consumption (2019):
146 Million kg

Domestic Production (92 M kg)

Imports for Consumption (54 M kg)

Export of Domestic Production (0.13 M kg)

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Sulfur Dioxide Supply Chain - Full Profile

Product Description

Sulfur dioxide (S02) is an inorganic chemical and widely used reducing agent. It is commonly used for
dechlorination of wastewater. The primary manufacturing process in the U.S. requires elemental sulfur. The
majority of sulfur dioxide manufactured in the U.S. is used in chemical manufacturing.

Use in Water Treatment

Sulfur dioxide is used in water treatment for dechlorination of treated wastewater (AWWA, 2015).

Use as a Precursor to Other Water Treatment Chemicals

Sulfur dioxide is used to manufacture sodium metabisulfite and sodium thiosulfate.

Other Applications

Sulfur dioxide is primarily used for chemical manufacturing, pulp and paper processing, and as a food desiccant
and preservative. It is also commonly used in ore processing, as a fungicide, wine production, and natural gas
and oil desulfurization (INEOS, 2021; NCBI, 2022).

Primary Industrial Consumers

Demand for industrial sulfur dioxide is most dependent on demand for sulfur derivative products, including
sodium hydrosulfite. Historically, the use of sulfur dioxide in chemical manufacturing accounted for 45% of
domestic consumption, followed by pulp and paper production and food and agricultural processing, which each
accounted for 15% of domestic consumption. Water and wastewater treatment, including industrial
wastewater, accounted for approximately 10% of consumption. A variety of other applications including ore
refining and oil recovery applications accounted for the remaining 15% (NCBI, 2022).

Manufacturing, Transport, & Storage

Manufacturing Process

The primary method by which sulfur dioxide is manufactured is by burning sulfur in an oxygen-rich environment.
The general equation for this process is shown in Figure 1. The gas is cooled and collected, and compressed to
produce liquefied sulfur dioxide. (ATSDR, 1998; INEOS, 2021).

Sulfur +

Oxygen —>

Sulfur Dioxide

S +

02 -)

S02

Figure 1. Chemical Equation for the Reaction to Manufacture Sulfur Dioxide
Product Transport

Sulfur dioxide is highly corrosive and toxic and reacts violently with strong bases, which dictates how it can be
transported. Liquified sulfur dioxide gas may be sold in bulk quantities and primarily delivered by rail or truck.
Transport of sulfur dioxide must adhere to the appropriate methods and regulations related to its status as a
highly corrosive substance.

EPA 817-F-22-051 | December 2022

SEPA

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Sulfur Dioxide Supply Chain - Full Profile

Storage and Shelf Life

Sulfur dioxide gas can be pressurized and cooled to a liquified gas and stored in pressurized vessels. Pressurized
storage vessels should be stored in a cool place away from direct sunlight. When stored properly, liquified sulfur
dioxide gas can have a shelf life of 12 months, depending on purity and size of storage container (Airgas, 2018;
NCBI, 2022).

Domestic Production & Consumption

Domestic Production

Production data was collected from the EPA Toxic Substances Control Act (TSCA) Chemical Data Reporting (CDR),
while trade data was collected from the U.S. International Trade Commission (USITC) Dataweb, as characterized
in Table 1. Both production and domestic trade data are specific to sulfur dioxide, while the international trade
category is specific to inorganic oxygen compounds of non-metals including sulfur dioxide.

Table 1. Sulfur Dioxide Production and Trade Data Sources

Production and Trade Data

Category

Data Source

Identifier

Description

Domestic Production

2020 TSCA Chemical Data Reporting

CAS No.: 7446-09-5

Sulfur Dioxide

Imports and Exports

U.S. International Trade Commission

HTS Code: 2811.29.30

Sulfur Dioxide

Total U.S. domestic manufacturing of sulfur dioxide was approximately 92 million kilograms (M kg) in 2019 (EPA,
2020). In 2019, INEOS Calabrian (INEOS) and PVS Phosphate were the primary domestic manufacturers. INEOS
indicates a North American production capacity of approximately 172 M kg for their facilities in Port Neches,
Texas and Timmins, Ontario. In addition to supplying sulfur dioxide to the merchant market, INEOS utilizes
sulfur dioxide in captive production for a range of sulfur derivative chemicals including sodium metabisulfite
(INEOS, 2016; INEOS, 2021). Historically, INEOS has been the largest U.S. producer of sulfur dioxide for
commercial resale. Other known manufacturing facilities manufacture sulfur dioxide primarily for captive
production of sulfur derivative products (USITC, 2005). Domestic manufacturing of sulfur dioxide takes place at
a limited number of facilities in the U.S. The number of domestic manufacturing locations shown in Figure 2
represents operating facilities as of 2015. Supply of NSF/ANSI Standard 60 certified sulfur dioxide for use in
drinking water treatment is also available at select locations (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).

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Sulfur Dioxide Supply Chain - hull Profile

• •

o

Domestic Supply and Manufacturing of Sulfur Dioxide

O 3 NSF/ANSI 60 Certified Suppliers (NSF International, 2021)

0 5 Domestic Manufacturing Locations (EPA Chemical Data Reporting, 2016)

Figure 2. Domestic Supply and Manufacturing of Sulfur Dioxide
Domestic Consumption

U.S. consumption of sulfur dioxide in 2019 is estimated at 146 M kg. This includes production of 92 M kg, import
of 54 M kg, minus export of 0.13 M kg (EPA, 2020; USITC, 2021), as shown in Figure 3.

Domestic Consumption (2019):

146 Million kg

¦	Domestic Production (92 M kg)

¦	Imports for Consumption (54 M kg)
b Export of Domestic Production (0.13 M kg)

Figure 3, Domestic Production and Consumption of Sulfur Dioxide in 2019

Trade & Tariffs

Worldwide Trade

Worldwide import and export data for sulfur dioxide are reported through the World Bank's World Integrated
Trade Solutions (WITS) software as a category specific to inorganic oxygen compounds of non-metals including
sulfur dioxide. In 2021, U.S. ranked 14th worldwide in total exports and first in total imports of inorganic oxygen

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Sulfur Dioxide Supply Chain - Full Profile

compounds of non-metals including sulfur dioxide. In 2021, France ranked first worldwide in total exports (WITS,
2022), as shown in Table 2.

Table 2. WITS Worldwide Export and Import of Inorganic Oxygen Compounds of Non-Metals Including Sulfur
Dioxide, in 2021

2021 Worldwide Trade
Inorganic Oxygen Compounds of Non-Metals (HS Code 2811.29)

Top 5 Worldwide Exporters

Top 5 Worldwide Importers

France

43 M kg

United States

95 M kg

Sweden

41 M kg

Austria

22 M kg

China

35 M kg

Russian Federation

18 M kg

Belgium

19 M kg

Malaysia

17 M kg

Spain

13 M kg

Netherlands

14 M kg

Domestic Imports and Exports

Domestic import and export data are reported by USITC in categories specific to sulfur dioxide. Figure 4
summarizes imports for consumption1 and domestic exports2 of sulfur dioxide between 2015 and 2020. During
this period, the overall quantity of imports and exports steadily increased, with imports for consumption greatly
exceeding domestic exports. Over this five-year period, Singapore was the primary recipient of domestic exports
and the Czech Republic the primary source of imports (USITC, 2021).

Domestic Trade of Sulfur Dioxide

60 HTS Code 2811.29.30

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Imports
Exports

2015

2016

2017

2018

2019 2020

¦ Imports from Czech Republic ¦ Exports to Singapore

¦ Imports from Canada ¦ Exports to China

¦ Imports from Other Countries Exports to Other Countries

Figure 4. USITC Domestic Import and Export of Sulfur Dioxide 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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Sulfur Dioxide Supply Chain - Full Profile

Tariffs

There is a 4.2% general duty for import of sulfur dioxide and an additional 25% duty on imports from China
(USITC, 2022), as summarized in Table 3.

Table 3. Domestic Tariff Schedule for Sulfur Dioxide in 2022

HTS Code

General Duty

Additional Duty - China
(Section 301 Tariff List)

Special Duty

2811.29.30

4.2%

25%

None

Market History & Risk Evaluation

History of Shortages

The majority of elemental sulfur, which is a necessary input to sulfur dioxide production, is recovered as a
byproduct of natural gas and petroleum processing. As described in the history of shortages for the sulfur supply
chain profile (EPA, 2022b), the price and availability of sulfur is closely tied to demand for fuels and petroleum
products (USGS, 2022). This has led to price fluctuations for sulfur dioxide.

Due to the concentration of sulfur dioxide producers at a small number of domestic manufacturing facilities
combined with the widespread need for sulfur dioxide, long-distance transport of sulfur dioxide is often
required. There is a high dependence on rail and long-distance transport. In 2021, the disruptions in availability
of qualified transporters caused by the COVID-19 pandemic led to regional interruptions in domestic sulfur
dioxide supply.

Risk Evaluation

The complete risk assessment 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.

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Sulfur Dioxide Supply Chain - Full Profile

Table 4. Supply Chain Risk Evaluation for Sulfur Dioxide

Risk Parameter Ratings and Drivers

1 Criticality High

1 Likelihood

High

1 Vulnerability Low 1

Sulfur dioxide is essential to the water
sector and has widespread application
for dechlorination of wastewater. It is
a precursor in the production of other
water treatment chemicals.

The water sector has experienced
disruptions in supply and significant
price increases. Concerns are primarily
due to periodic reductions in
production of raw material (sulfur),
the dominant use of the raw material
for manufacturing of sulfuric acid, and
the need for long-distance transport
from limited manufacturing locations.

Domestic manufacturing is limited but
distributed. However, imports play a
role in meeting domestic demand.

Risk Rating: Moderate-Low

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References

Agency for Toxic Substances and Disease Registry (ATSDR), 1998. Toxicological profile for Sulfur Dioxide,
retrieved from https://www.atsdr.cdc.gov/ToxProfiles/tpll6.pdf

Airgas, 2018. Safety Data Sheet: Sulfur Dioxide, retrieved from https://www.airgas.com/msds/001Q47.pdf

American Water Works Association (AWWA), 2015. B512, Sulfur Dioxide. 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. Sulfur Supply Chain - Full Profile, retrieved from

https://www.epa.gov/waterutilitvresponse/water-treatment-chemical-supplv-chain-profiles

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

INEOS Calabrian (INEOS), 2016. Sulfur Dioxide, retrieved from

http://www.chemwinfo.com/private folder/Uploadfiles2016 August/Calabrian Sulfur Dioxide (S02)
Ca.pdf

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Sulfur Dioxide Supply Chain - Full Profile

INEOS Calabrian (INEOS), 2021. Sulfur Dioxide (S02), retrieved from

https://www.ineos.com/globalassets/ineos-group/businesses/ineos-enterprises/businesses/ineos-
calabrian/markets/sulfur-dioxide.pdf

National Center for Biotechnology Information (NCBI), 2022. PubChem Compound Summary for CID 1119,
Sulfur Dioxide, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/1119

NSF International, 2021. Search for NSF Certified Drinking Water Treatment Chemicals, retrieved from
https://info.nsf.org/Certified/PwsChemicals/

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

U.S. International Trade Commission (USITC), 2005. Liquid Sulfur Dioxide from Canada, retrieved from
https://www.usitc.gov/publications/701 73 lZpub3826.pdf

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

7

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