AUSTRALIA NITRIC ACID MARKET ANALYSIS

Australia nitric acid market was valued at US$ 1,177.5 Million in 2022 and is expected to reach 2337.3 by 2030 following a CAGR of 9.18% over the forecast period (2023-2030)

Nitric acid is used as an alternative to chlorine in various countries in precious metal refining process, as chlorine is highly toxic in nature, and this is expected to drive the market growth. For instance, According to the World Gold Council, around 3,924 tons of gold was refined in 2014 around the globe. Australia accounts for 15% share in world economic gold sources, and is the second-largest producer of gold, accounting for 10% of overall global gold output.

Australia Nitric Acid Market: Drivers

Demand for Nitric Acid from Fertilizers Industry

Rising demand for nitric acid from fertilizers industry across the globe is expected to drive ammonium thiosulphate market growth over the forecast period. For instance, according to the FAO- Food and Agriculture Organization (U.S.), the Australia’s demand for fertilizer nutrients including sulfur, nitrogen, potash, and phosphates increased to 200,552 Kilo tons in 2021 from 197,190 Kilo tons in 2017.

Increasing Mining Exploration Activities

Rising demand for nitric acid for the production of ammonium nitrate that is widely used as explosives in the mining industry is expected to drive the market growth. Increasing mining exploration activities in Australia, especially in western Australian and Queensland, is expected to boost the production and consumption of nitric acid in the country.

Australia Nitric Acid Market: Restraints

Serious Health and Environmental Issues

Increasing focus of government towards the production of substitute of ammonium nitrate explosives in mining industry is expected to hamper the market growth. There has been environmental concern associated with the usage of ammonium nitrate, as it releases various toxic gases upon explosion that can cause serious health and environmental issues.

Australia Nitric Acid Market: Segmentation

Australia nitric acid market is segmented  into by product type (fuming and non-fuming), by grade (commercial and  specialty), by end user (explosives, fertilizers, and others), and by state (Western Australia, Queensland, New South Wales, Victoria, and Rest of Australia).

Among end user, the explosives segment accounted for 96.1% share of the Australia nitric acid market, in 2022, and is expected to remain dominant over the forecast period.

Figure 1. Australia Nitric Acid Market, By End User, 2022

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Australia Nitric Acid Market: Regional Insights

On the basis of region, Australia nitric acid market is segmented into New South Wales, Victoria, Queensland, Western Australia, and Rest of Australia. Queensland and Western Australia are the largest market for nitric acid in Australia, ly accounting for 58% share, in 2022. Western Australia, New South Wales, and Queensland are expected to be the most attractive markets for nitric acid in Australia over the forecast period.

Figure 2. Australia Nitric Acid Market, By State, 2022

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Australia Nitric Acid Market: Recent Developments

• In 2021, Wesfarmers Chemicals, Energy & Fertilisers (WesCEF), announced that it had signed a long term supply agreement with Yara Pilbara Fertilizers, for the supply of ammonia, which is a key ingredient in the production of nitric acid. The agreement is expected to support WesCEF’s long term supply of nitric acid to the Australia Market.
• In 2020, Incitec Pivot Limited (IPL), one of the country’s largest fertilizer and explosives manufacturers, announced that it had completed a US$ 750 million upgrade of its nitric acid plant in Queensland. This upgrade increased the plant’s production capacity by 50%, and thus, makes it one of the largest nitric acid plants in the world.

Australia Nitric Acid Market: Key Companies

Major players operating in the Australia nitric acid market include Orica Limited, Wesfarmers Chemicals, Energy & Fertilisers, and Incitec Pivot Ltd

*Definition: Nitric acid is fuming, colorless, and highly corrosive liquid that is widely used in various Industries. It is highly toxic in nature, and causes severe burn injury. It is primarily used in the production of fertilizers such as nitro-phosphate, ammonium nitrate, and ammonium phosphate.