Hydrochloric Acid Procurement Intelligence: A Deep Dive

The hydrochloric acid category is anticipated to grow at a CAGR of 6.6% from 2023 to 2030. The rising usage of hydrochloric acid from various end-use industries such as food and beverages, dyes, pigments, steel pickling, water & wastewater treatment, and others is anticipated to drive the category growth. The category is mainly driven by demand in wastewater treatment to adjust pH levels and enhance water quality. A wide range of food products such as cold drinks, cereals, and corn syrups used in biscuits are processed using hydrochloric acid.

Waterborne diseases are a major concern in African countries such as Nigeria. According to UNICEF 2022 report, around 70% of water at the time of consumption is contaminated. Additionally, the U.N. agency stated that contamination is the reason Nigeria has the world’s highest number of deaths due to waterborne diseases among children between five years old. To tackle such problems various government bodies such as UNICEF, and the World Bank are taking initiatives to help wastewater treatment projects in the region. Such initiatives are expected to boost the demand for hydrochloric acid used for water treatment.

The production of hydrochloric acid relies directly on the availability of chlorine, and it is mainly generated as a co-product or byproduct during the production of chlorinated derivative chemicals. Advancements in the production process have evolved over the years due to efficiency, safety, and environmental concerns. Membrane cell electrolysis, hydrogen chloride recovery, and automation and process control are some of the notable innovations in the production process. Membrane cell electrolysis technology has largely replaced the outdated mercury cell electrolysis in chlorine production. Membrane cells offer enhanced environmental benefits by eliminating the need for mercury and decreasing the generation of chlorine gas emissions. Additionally, utilizing advanced automation and process control systems has elevated the accuracy and safety of hydrochloric acid production, thereby mitigating the potential for accidents, and enhancing the quality of the product.

Germany, Japan, and Canada are top hydrochloric acid exporting countries. In 2022, Germany exported acid of around 1.2 million metric tons, and worth of USD 69 Million. Similarly, Canada which ranked second exported over USD 43 million, followed by Japan which exported worth of USD 36 million. In August 2023, the prices of hydrochloric acid prices in the U.S. were around USD 0.08/kg, whereas in Europe the prices were around USD 0.17/kg. In November 2021, the prices of acid in Europe increased sharply, due to a tight supply of raw material Chlorine which resulted in producers looking for the best value to offset high energy costs.

Order your copy of the Hydrochloric Acid Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Buyers in the category, such as chemical manufacturers and industrial users, often purchase in bulk. However, they choose from typically multiple suppliers, which gives buyers some negotiation power. Prices are also influenced by factors like supply and demand dynamics and the cost of raw materials. Due to the harmful effects of acid on the environment, companies are obliged to follow safety protocols by various government agencies. For instance, according to the U.S. Food and Drug Administration, Section 182.1057 recognizes hydrochloric acid as safe when used as a neutralizing agent in accordance with good manufacturing practices.

Raw material, labor, land and construction, machinery, utility, packaging, transportation, and others are some of the cost components involved in the production of the category. Hydrochloric acid is produced through various processes such as salt and sulphuric acid, the Mannheim process, and hydrogen and chlorine. The most used method is through hydrogen and chlorine. Raw material and labor costs account for a major part of the total cost.

In terms of hydrochloric acid production, the hybrid model is a popular engagement model in the category, combining in-house and full-service outsourcing. Some suppliers opt for a partial outsourcing model. Companies outsource operations such as packaging, and transportation services. Employing an in-house team for a complete production line from procuring raw material to quality testing, packaging, and transportation can be beneficial for the company. Developing a strong relationship with suppliers of raw materials (hydrogen and chlorine) and ensuring the consistency and traceability of the supply chain is key to sourcing the category.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Chemical Management Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

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Hydrochloric Acid Procurement Intelligence Report Scope

• Hydrochloric Acid Category Growth Rate: CAGR of 6.6% from 2023 to 2030

• Pricing growth Outlook: 6% - 7% (annual)

• Pricing Models:  Volume based Pricing; Competition based pricing

• Supplier Selection Scope: Cost and pricing, volume, production capacity, geographical presence, and compliance

• Supplier selection criteria: Quality, volume range offered, contract terms, delivery option, technology used, safety and environmental compliance, location and presence of supplier, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies 

• BASF

• AGC Chemicals Americas

• Vynova

• Detrex Chemicals

• Thermo Fisher Scientific

• Kaneka Corporation

• ERCO Worldwide

• Oxy

• Olin

• Tata Chemicals

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

The Role of Methanol Procurement Intelligence in Driving Innovation

The methanol category is expected to grow at a CAGR of 4.6% from 2023 to 2030. Methanol is used as a fuel source due to its blending capacity and high-octane rating. Methanol, alternatively referred to as methyl alcohol or wood alcohol, is a transparent, lightweight, volatile, and combustible liquid possessing an aroma akin to ethanol or alcoholic beverages. It stands as one of the widely employed industrial chemicals, serving as a precursor in the manufacturing processes of formaldehyde, acetic acid, Methyl Tert-Butyl Ether (MTBE), Dimethyl Ether (DME), biodiesels, olefins, and various other compounds.

Methanol finds extensive application in the production of biodiesel, a biodegradable and environmentally safe alternative that generates fewer air pollutants compared to other fuels. Anticipated growth in the market is expected through government initiatives aimed at reducing the global carbon footprint. The category also plays a crucial role in olefins generation through the Methanol-to-Olefins (MTO) process, including key components like ethylene and propylene. These olefins have diverse applications, contributing to the production of synthetic rubber, synthetic plastic, pharmaceuticals, and textile dyes. Additionally, certain ethylene derivatives are employed in the manufacturing of ethylene glycol, vinyl chloride monomer, and vinyl acetate monomer, which are essential for various end-use industries such as paints, coatings, and adhesives. Rising demand for these products is expected to drive the consumption of methanol in manufacturing them, which is indirectly anticipated to boost the category growth.

Growing environmental concerns and the push for sustainable practices have led to an increased interest in green methanol production. Green methanol is produced from renewable sources, such as biomass, municipal solid waste, or captured carbon dioxide. This aligns with global efforts to reduce carbon emissions and promote a circular economy.

Order your copy of the Methanol Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The methanol category is fragmented, with the presence of various players such as SABIC, Methanex, Proman, and OCI Global. These companies continuously focus on increasing their production capacity to meet the demand from the end-use industry, entering mergers and acquisitions, and entering into agreements for production in new locations to sustain in the market. For instance, in February 2023, Celanese and Mitsui & Co. reached a consensus to extend their ongoing Fairway Methanol LLC joint venture, operating at Celanese’s Clear Lake U.S. facility, and extend the ownership till 2045. In the upcoming months in 2023, the Fairway Methanol LLC joint venture anticipates finalizing a cost-effective capacity expansion to 1.62 million metric tons. Additionally, later in 2023, the venture will commence recycled carbon dioxide (CO2) as an alternative feedstock for methanol production.

Methanol Sourcing Intelligence Highlights

• Buyers in the category include chemical manufacturing, energy, and automotive companies, which may have moderate to high bargaining power. This depends on the availability of alternative sources and the uniqueness of the methanol applications. Large buyers with significant purchasing volumes may have more bargaining power.

• Companies compete among themselves by increasing production capacity, entering into mergers and acquisitions to increase their global presence, and focusing on moving towards the production of green methanol.

• Raw material (natural gas, coal), labor, energy, equipment costs, transportation, and others are some of the cost components in the category. Other cost considerations include repair and maintenance, legal, and packaging costs.

• China, Saudi Arabia, and Trinidad and Tobago are the preferred countries for sourcing methanol due to their production capacity, availability of abundant feedstock (natural gas, coal), and availability of cheap labor.

Browse through Grand View Research’s collection of procurement intelligence studies:

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List of Key Suppliers 

• SABIC

• Methanex

• Proman

• OCI Global

• Mitsui & Co.

• Celanese

• Simalin

• BASF

• Mitsubishi Gas Chemical

• Petronas

Methanol Procurement Intelligence Report Scope

• Methanol Category Growth Rate: CAGR of 4.6% from 2023 to 2030

• Pricing Growth Outlook: 3% - 4% (Annually)

• Pricing Models: Volume-based pricing, competition-based pricing

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier Selection Criteria: Purity and grade of the product, end-use served, production capacity, bulk purchase quantities, delivery option, safety and environmental compliance, location and presence of supplier, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions