Market Challenges And Opportunities

Market Dynamics

Ferric chloride also has industrial uses including manufacturing of pigments, surface treating agents and plating agents, solids separation agents, and process regulators. In laboratories, minimal amount of neutralized iron(III) chloride solution is used for the colorimetric testing for phenols. Upon adding the neutralized solution to the water, the water takes a momentary or permanent tinge of blue, green, or purple if it detects presence of a phenol in the water.

In addition to its wide range of industrial applications, the production cost of ferric chloride is considerably low. As a result, a large number of producers of chlor-alkali are investing in the production of ferric chloride. Moreover, growing awareness regarding wastewater treatment, combined with the demand for clean drinking water in emerging economies is expected to drive the growth of the global anhydrous ferric chloride market. In comparison with alternative water treatment chemicals such as alum, ferrous sulphate, and polyaluminium chloride, ferric chloride is cost efficient and performs effectively, which in turn could propel its demand in the market.

However, owing to its corrosive and acidic properties, ferric chloride can be hazardous in terms of health and safety. Upon heating ferric chloride, it emits toxic fumes, and ingestion of these gases can result in morbidity, and in some cases it can also cause death. These factors are expected to restrain growth of the global anhydrous ferric chloride market during the forecast period.